Public Act 098-0545
 
SB1829 EnrolledLRB098 09006 MGM 39141 b


  
    AN ACT concerning regulation.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  

  
 
    Section 5. The Electronic Fund Transfer Act is amended  by 
changing Section 10 and by adding Section 46 as follows:
 



    (205 ILCS 616/10)



    Sec. 10. Definitions. For purposes of this Act, the words 
and phrases
defined in
this Section shall have the meanings 
ascribed to them unless the context
requires otherwise.  
Whenever the terms "network" and "switch" are used, they
shall 
be deemed interchangeable unless, from the context and facts, 
the
intention
is plain to apply only to one type of entity.

    "Access device" means a card, code, or other means of 
access to an
account, or any combination thereof, that may be 
used by a customer to initiate
an electronic fund transfer at a 
terminal.

    "Account" means a demand deposit, savings deposit, share, 
member, or
other customer asset account held by a financial 
institution.

    An "affiliate" of, or a person "affiliated" with, a 
specified person,
means a person that directly, or indirectly 
through one or more intermediaries,
controls, is controlled by, 
or is under common control with, the person
specified.

    "Commissioner" means the Secretary of Financial and 
Professional Regulation or a person
authorized by the 
Secretary, the Division of Banking Act, or
this Act to act in 
the Secretary's stead.

    "Division" means the Division of Banking within the 
Department of Financial and Professional Regulation.
    "Electronic fund transfer" means a transfer of funds, other

than a transaction originated by check, draft, or similar paper 
instrument,
that is initiated through a terminal for the 
purpose of ordering, instructing,
or authorizing a financial 
institution to debit or credit an account.

    "Financial institution" means a bank established under the

laws of this or any other state or established under the laws 
of the United
States, a savings and loan association or savings 
bank established under the
laws of this or any other state or 
established under the laws of the United
States, a credit union 
established under the laws of this or any other state or

established under the laws of the United States, or a licensee 
under the
Consumer Installment Loan Act or the Sales Finance 
Agency Act.

    "General use reloadable card" means a card, code, or other 
access device that is:
        (1) issued on a prepaid basis primarily for personal, 
    family, or household purposes to a consumer in a specified 
    amount in exchange for payment;
        (2) issued under an agreement containing terms and 
    conditions that permit funds to be added to the card, code, 
    or other device after the initial purchase or issuance, 
    including a temporary non-reloadable card issued solely in 
    connection with a general use reloadable card, code, or 
    other device;
        (3) not marketed or labeled as a gift card or gift  
    certificate; and
        (4) redeemable upon presentation at multiple, 
    unaffiliated merchants for goods or services or usable at  
    automated teller machines.
    "Interchange transaction" means an electronic fund 
transfer
that results in exchange of data and settlement of 
funds between 2 or more
unaffiliated financial institutions.

    "Issuer" means a person that issues a general use 
reloadable card or that person's agent with respect to the 
card.
    "Marketed or labeled as a gift card or gift certificate" 
means directly or indirectly offering, advertising, or  
otherwise suggesting the potential use of a card, code, or 
other device as a gift for another person. 
    "Network" means an electronic information communication 
and
processing system that processes interchange transactions.

    "Person" means a natural person, corporation, unit of 
government or
governmental subdivision or agency, trust, 
estate, partnership, cooperative, or
association.

    "Seller of goods and services" means a business entity 
other than a
financial institution.

    "Switch" means an electronic information and communication 
processing
facility that processes interchange transactions on 
behalf of a network.  This
term does not include an electronic 
information and communication processing
company (1) that is 
owned by a
bank holding company or an affiliate of a bank 
holding company and used solely
for transmissions among 
affiliates of the bank holding company or (2) to the
extent 
that the facility, by virtue of a contractual relationship, is 
used
solely for transmissions among affiliates of a bank 
holding company, regardless
of whether the facility is an 
affiliate of the bank holding company or operates
as a switch 
with respect to one or more networks under an independent

contractual relationship.

    "Terminal" means an electronic device through which a 
consumer may
initiate an interchange transaction.  This term 
does not include (1) a
telephone, (2) an electronic device 
located in a personal residence, (3) a
personal computer or 
other electronic device used primarily for personal,
family, or 
household purposes, (4) an electronic device owned or operated 
by a
seller of goods and services unless the device is 
connected either directly or
indirectly to a financial 
institution and is operated in a manner that provides
access to 
an account by means of a personal and confidential code or 
other
security mechanism (other than signature), (5) an 
electronic device that is not
accessible to persons other than 
employees of a financial institution or
affiliate of a 
financial institution, or (6) an electronic device that is

established by a financial institution on a proprietary basis 
that is
identified as such and that cannot be accessed by 
customers of other financial
institutions.  The Commissioner 
may issue a written rule that excludes
additional electronic 
devices from the definition of the term "terminal".

(Source: P.A. 96-1365, eff. 7-28-10.)

 
    (205 ILCS 616/46 new)
    Sec. 46. Disclosure requirements for general use 
reloadable cards.
    (a) The issuer of a general use reloadable card shall make 
the disclosures required under this Section in accordance with 
the following standards:
        (1)   The disclosures shall be clear and conspicuous.  The 
    disclosures may contain commonly accepted or readily 
    understandable abbreviations or symbols.
        (2) The disclosures required under items (1), (2), and 
    (3) of subsection (b) of this Section shall be provided to 
    the consumer in written or electronic form.  When cards are 
    sold online, the disclosures required by item (1) of 
    subsection (b) of this Section must be clearly and 
    conspicuously accessible on the issuer's Internet website 
    prior to purchase.
        (3) For joint accounts, only one set of the required 
    disclosures shall be provided and may be given to any of 
    the account holders.
        (4) Issuers may design their own disclosure format, 
    provided that all fees required to be disclosed under 
    subsection (b) of this Section are included, the amount of 
    each fee is disclosed along with the frequency at which 
    each fee may be assessed, and the substance and clarity of 
    the disclosures are not affected.
    (b) The issuer must make the following disclosures:
        (1) Before a general use reloadable card is purchased, 
    the issuer shall disclose to the consumer the amount of 
    any:
            (A)  card purchase fee;
            (B)  monthly maintenance fee;
            (C) cash withdrawal fee at an ATM and cash advance 
        fee at retail locations;
            (D)  reload fee;  and
            (E)  balance inquiry fee, unless disclosure of the 
        balance is available to the consumer without cost via 
        telephone or Internet access.
        The disclosures required in this item (1) must be made 
    on the portion of the card packaging accessible to the 
    consumer prior to purchase for all cards sold at retail 
    locations.
        (2) The issuer shall include the following disclosures 
    on the card:
            (A)  the expiration date of the card, if any; and
            (B)  a toll-free telephone number and, if one is 
        maintained, an Internet website that a consumer may use 
        to obtain information about fees and to obtain a 
        replacement card after the card expires if the 
        underlying funds may be available thereafter.
        (3) The issuer shall disclose with the card the amount 
    of each type of fee not disclosed in item (1) of this 
    subsection (b) that may be imposed in connection with the 
    card after purchase (or, if variable, an explanation of how 
    the fee shall be determined) and the conditions under which 
    the fee may be imposed.
    (c)  A card, code, or other access device is not a general 
use reloadable card merely because the issuer or processor is 
technically able to add functionality that would otherwise 
enable the card, code, or other access device to be reloaded.
    (d)  Compliance with the federal Electronic Fund Transfer 
Act and any regulations issued under that Act regarding general 
use reloadable card disclosures shall constitute compliance 
with this Section.
    (e)  The requirements of this Section shall apply to any 
general use reloadable card sold to a consumer on or after 
January 1, 2015.
    (f) In this Section, "card" means a general use reloadable 
card. 

 
    Section 99. Effective date. This Act takes effect January 
1, 2014.