TITLE 92: TRANSPORTATION
CHAPTER II: SECRETARY OF STATE
PART 1019
REMITTANCE AGENTS
SECTION 1019.5 DEFINITIONS
Section 1019.5 Definitions
a) For purposes of this Part, the following definitions shall
apply:
"Applicant"
– person requesting that a title and/or registration be issued in his/her name.
"Dealer"
– every person engaged in the business of acquiring or disposing of vehicles
or their essential parts and who has an established place of business for such
purpose. [625 ILCS 5/1-115]
"Department"
– Department of Vehicle Services within the Office of the Secretary of State.
"Financially
Sound" – solvent and able to pay expenses and debts as due, as evidenced
by the surety bond obtained pursuant to Section 3-905 of the Illinois Vehicle
Title & Registration Law of the Illinois Vehicle Code (Ill. Rev. Stat.
1987, ch. 95½, par. 3-905).
"Fraudulent
Activity" – any activity in which a person knowingly falsifies
information.
"Good
Business Integrity" – soundness or good moral principle and character in
business dealings as evidenced by the surety bond obtained pursuant to Section
3-905 of the Illinois Vehicle Title & Registration Law of the Illinois
Vehicle Code (Ill. Rev. Stat. 1987, ch. 95½, par. 3-905), or good moral principle
and character in business dealings.
"Immediate
Family" – spouse, offspring, sibling, or parent.
"Licensee"
– a licensed remittance agent.
"Revocation"
– the termination by formal action of a person's license to operate as a
remittance agent.
"Secretary"
– Secretary of the State of Illinois.
"Suspension"
– the temporary withdrawal by formal action by the Secretary of a person's
license to operate as a remittance agent for thirty (30) days pending
compliance and re-audit.
"Transaction"
– an application for title and/or registration of a vehicle, any supporting
documents and fees for remittance to the Department.
(Source:
Amended at 42 Ill. Reg. 223, effective December 19, 2017)
 | TITLE 92: TRANSPORTATION
CHAPTER II: SECRETARY OF STATE
PART 1019
REMITTANCE AGENTS
SECTION 1019.10 APPLICATION FOR REMITTANCE AGENCY LICENSE AND RENEWAL
Section 1019.10 Application
for Remittance Agency License and Renewal
a) If a person wishes to become a remittance agent, he/she shall
file an application and bond pursuant to Sections 3-904 and 3-905 of the
Illinois Vehicle Code [625 ILCS 5] (IVC). The application shall be filed with
the Office of the Secretary of State as set forth in subsection (f).
b) The notarized application shall contain the following
information:
1) the previous year's license number if the person is currently
licensed as a remittance agent;
2) the name of the business;
3) the location of the business. A licensee shall not do
business at a location not set forth in his or her license. (IVC Section
3-908) The location of the business shall also include a working printer and
facsimile capabilities;
4) the applicant's home address, home telephone number and
business telephone number;
5) the applicant's business, occupation or profession;
6) the total amount of cash, checks, electronic payments or money
orders made payable to the remitter received for remittance to the State in the
highest 15 day period in the preceding year if the person is currently
licensed;
7) whether the applicant, a member of his/her immediate family,
or any employee of the applicant is an employee of the Secretary of State;
8) whether the applicant has ever been involved in civil or
criminal litigation and if so, the type of litigation, the date and suit or
charge, the court in which the matter was heard, the style or caption of the
case, the disposition of the matter, and if the judgment has been satisfied;
9) whether a civil, criminal, or administrative proceeding under
the Retailers' Occupation Tax Act [35 ILCS 120] or IVC Chapter 3, Article I or
VII has determined that the applicant has committed a violation within the past
3 years; and
10) a list of the employees and an authorization to conduct a
background check of each employee.
c) A surety bond shall be posted for each location where the
applicant intends to do business as a remittance agent. Each bond shall be for
$20,000 or in the amount of cash, checks, electronic payments or money orders
made payable to the remitter received for remittance to the Department during
the highest 15 day period in the year preceding the year for which the license
is applied, whichever is greater. The bond shall be issued by a bonding or
insurance company authorized to do business in Illinois. The Department shall
use a list issued by the Department of Insurance to determine if the bonding or
insurance company is authorized to issue the bond.
d) The applicant shall also submit the statutory fee provided in IVC
Section 3-905 for application. A license is issued for a period of one year
terminating on December 31 each year.
e) A remittance agent wishing to renew his/her license shall
submit the material required by this Section to the Department between
September 1 and December 31 of the year before the new license will become
effective.
f) All remittance agent license applications and corresponding
materials should be submitted to:
Office of the Secretary of State
Vehicle Services Department
Howlett Building, Room 069
Springfield, Illinois 62756
g) The Department will make available the application form to any
person who requests one. Only the Department's form will be accepted to apply
for a license to operate as a remittance agent.
(Source: Amended at 43 Ill. Reg. 6231, effective May 9, 2019)
| TITLE 92: TRANSPORTATION
CHAPTER II: SECRETARY OF STATE
PART 1019
REMITTANCE AGENTS
SECTION 1019.20 DENIAL OF APPLICATION FOR REMITTANCE AGENT'S LICENSE
Section 1019.20 Denial of
Application for Remittance Agent's License
a) Pursuant to IVC Section 3-906, the Department shall deny an
application for remittance agent's licenses under the circumstances outlined in
IVC Section 3-906. If a person's application is denied, he/she shall be sent
his/her application and a notice of the denial by certified mail within 30 days
after the date the application was submitted. The notice shall contain the
reason for the denial and inform the applicant of his opportunity to request an
administrative hearing to contest the denial pursuant to 92 Ill. Adm. Code
1001.
b) Renewal of a remittance agent's license shall be denied if
upon investigation it is discovered that the remittance agent is not
financially sound and/or of good business integrity or is otherwise ineligible
for a license as provided in IVC Section 3-906. Auditors from the Department
of Accounting Revenue within the Office of the Secretary of State shall conduct
yearly inspections which includes but are not limited to examination of the
temporary permits and the bond amounts. The auditors shall also be authorized
by the Department to inspect the remittance agent's business records and to
report any irregularities (e.g., failure to keep records as required by IVC Section
3-910) to the Department. Any further investigation shall be conducted by the
Department of Police within the Office of the Secretary of State.
c) The Department shall consider written complaints (i.e., from
family, friends, neighbors, business associates, customers, other agencies, and
the auditors from the Department of Accounting Revenue or Department of Police)
in denying a remittance agent's license. Upon receipt of a complaint, the
Secretary of State police shall investigate the matter. If, upon this
investigation, it is discovered that a basis for denial exists pursuant to IVC Section
3-906, the remittance agent's current license shall be suspended or revoked as
provided in Section 1019.30 if he/she is currently licensed as a remittance
agent.
(Source: Amended at 43 Ill. Reg. 6231, effective May 9, 2019)
| TITLE 92: TRANSPORTATION
CHAPTER II: SECRETARY OF STATE
PART 1019
REMITTANCE AGENTS
SECTION 1019.30 SUSPENSION AND REVOCATION OF REMITTANCE AGENTS' LICENSES
Section 1019.30 Suspension
and Revocation of Remittance Agents' Licenses
a) Pursuant to IVC Section 3-907, the Department shall suspend a
person's remittance agent's license under the following circumstances:
1) he/she fails to keep records as provided in IVC Section 3-910;
2) he/she fails to furnish information requested by the
Department or file a bond as required by IVC Section 3-905; or
3) it is discovered that he/she or a member of his/her immediate
family is an employee of the Secretary of State.
b) The suspension shall remain in effect for 30 days during which
an audit shall be conducted to determine compliance with IVC Section 3-900. If
he/she has come into compliance, his/her remittance agent's license shall be
restored. If the remittance agent has not come into compliance, he/she shall
have his/her remittance agent privileges revoked.
c) A person shall have his/her remittance agent's license revoked
under the following circumstances:
1) he/she attempts to do business or does business as a
remittance agent while his/her privileges are suspended;
2) he/she fails to remit to the Department or the Illinois
Department of Revenue the proper fees required by IVC Section 3-906(4), or the
check submitted is returned by the bank because of insufficient funds, or the
payment submitted electronically is dishonored for any reason, and if he/she
fails to submit the proper fees within 10 days after a written request by the
Department;
3) he/she engages in a fraudulent activity or forgery while
operating as a remittance agent, as determined by the Department after the
investigation;
4) he/she is guilty of violating any provision of IVC Chapter 2,
3 or 4 or the Use Tax Act [35 ILCS 105] or the Service Occupation Tax Act [35
ILCS 115];
5) he/she has been suspended 2 times or more in one year; or
6) he/she has been convicted of any felony.
d) The Department shall consider written complaints (i.e.,
family, friends, neighbors, business associates, customers, other agencies, and
auditors from the Department of Accounting Revenue) in determining whether a
remittance agent's license shall be suspended or revoked. Upon receipt of a
complaint, the Department of Police within the Office of the Secretary of State
shall investigate the matter to determine if a basis exists under this Section
for a suspension or revocation.
e) A revocation shall be for at least one year. The remittance
agent shall be notified by certified mail that his/her license to operate as a
remittance agent is going to be revoked. The notice shall contain the
effective date of the revocation, the violation that is the cause of the
revocation, and how he/she can contest the revocation. The remittance agent
shall be given 10 days from the date of the notice before the revocation will
become effective. In order to be reinstated following a revocation, the person
shall request an administrative hearing as provided in 92 Ill. Adm. Code Ch. II.
The person's remittance agent license shall not be restored until the Secretary
is satisfied that he/she will comply with the provisions of the Illinois
Vehicle Title & Registration Law [625 ILCS 5/Ch. 3, Art. IX] and is of good
business integrity.
f) If a person wishes to contest the suspension or revocation of
his/her remittance agent's license, he/she shall request an administrative
hearing pursuant to IVC Section 3-907 and 92 Ill. Adm. Code 1001.
(Source: Amended at 43 Ill. Reg. 6231, effective May 9, 2019)
| TITLE 92: TRANSPORTATION
CHAPTER II: SECRETARY OF STATE
PART 1019
REMITTANCE AGENTS
SECTION 1019.35 PROCESSING TRANSACTIONS
Section 1019.35 Processing
Transactions
a) Beginning September 1, 2020, all
applications for title, registration, or
title and registration submitted to the Department by persons acting as
remittance agents shall be submitted by an electronic registration and titling
process, via either an approved electronic registration and titling service
provider or through the Secretary of State's website.
b) All transactions shall be electronically submitted to the
Department within 5 days after receipt by the remittance agent. All supporting
documentation is required and must be submitted within 20 calendar days after
the submission of the electronic application. Failure to comply with this
Section shall be grounds for suspension or revocation of the remittance agent's
license, based upon the severity of the violation.
c) Any person who picks up or receives transactions from other
remittance agents, dealers, currency exchanges, financial institutions or any
other person exempt from being licensed as a remittance agent under IVC Section
3-902 shall be considered a remittance agent under provisions of IVC chapter 3,
Article IX and required to be licensed in accordance with this Part.
d) The names of all employees of the remittance agent shall
appear on the remittance agent's license application. Those employees shall be
issued I.D. cards and be required to present their I.D. when attempting to
process transactions. . The Department shall be notified in writing of any
changes in personnel, business location, and/or the business name during the
licensing year within 10 calendar days of the occurrence after the change.
e) No remittance agent shall employ any individual, or any member
of that individual's immediate family, who is employed by the Office of the
Secretary of State. This prohibition shall not apply to persons employed by a
remittance agent prior to April 10, 1983.
f) All electronically submitted applications must include the
remittance agent's assigned number in the designated position on the form. Any
other remittance agent involved in the transaction shall stamp his/her
remittance agent number in the remarks section on the front of the application.
g) The fee submitted to the Department shall be affixed to the supporting
documentation required by subsection (b). Failure of the remittance agent to
affix the check, electronic payment, or money order to the proper application
shall result in the rejection of the transaction.
(Source:
Amended at 45 Ill. Reg. 727, effective December 23, 2020)
| TITLE 92: TRANSPORTATION
CHAPTER II: SECRETARY OF STATE
PART 1019
REMITTANCE AGENTS
SECTION 1019.40 RECORDKEEPING REQUIREMENTS
Section 1019.40
Recordkeeping Requirements
a) Each person licensed as a remittance agent as defined in IVC Section
3-900 shall maintain for a period of 3 years a record of each transaction
involving a remittance to the Department.
b) The records shall be maintained in ledger form or be
computerized. If computerized, the records should be available to the auditors
from the Accounting Revenue Department or the officers from the Department of
Police within 30 minutes after a request. The records shall contain the
following information:
1) The name and address of the remittance agent. If the
remittance agent has more than one licensed location, the records shall reflect
the location where the transaction was received and/or processed, or where the
records are kept.
2) The name and address of the applicant submitting the
transaction. If a remittance agent does not make the initial contact with the
applicant but receives a transaction from another remittance agent, dealer,
currency exchange, or financial institution, the second remittance agent shall
record the original applicant's name and that of the initiating remittance
agent, dealer, currency exchange, or financial institution.
3) The address of the Secretary of State facility to which the
transaction is delivered. If the transaction is delivered to another
remittance agent for delivery to the Department, the name and address of the
second remittance agent shall be recorded by the first remittance agent.
4) The type of application that the transaction involves.
5) The amount of fee received by the remittance agent for
delivery to the Department for each transaction. The funds shall be identified
as "cash", "check", "electronic payment" or
"money order" payable to the Secretary of State, or "check",
"electronic payment" or "money order" payable to the
remitter.
6) The initiating remittance agent shall record the amount of fee
received by the remittance agent for delivery to the Department of Revenue.
The funds shall be identified as "cash", "check",
"electronic payment", or "money order" payable to the
Department of Revenue, or "check", "electronic payment", or
"money order" payable to the remitter.
7) The date the fee and transaction were received by the
remittance agent.
8) The date the fee and transaction were delivered to the
Department and the method of delivery.
9) The date that the registration plate and/or sticker was
delivered to the applicant or initiating remittance agent, dealer, currency
exchange or financial institution, if applicable. If it is the policy of the
remittance agent to have the applicant pick up the registration plate and/or
sticker, the date that the applicant was notified of its availability, the
method of notification, and date the items were picked up shall be recorded.
(Source: Amended at 42 Ill. Reg. 223, effective December 19, 2017)
| TITLE 92: TRANSPORTATION
CHAPTER II: SECRETARY OF STATE
PART 1019
REMITTANCE AGENTS
SECTION 1019.45 SEVERABILITY CLAUSE
Section 1019.45 Severability
Clause
If any clause or Section of this
Part or the application of any provision of this Part to any person or
circumstance is rendered unconstitutional, the remainder of this Part or its
application to other persons and circumstances shall not be affected. Each
clause shall be severable without rendering the rest of the Part invalid.
Likewise, each application of the Part shall be severable without rendering
future applications invalid.
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