101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4989

 

Introduced 2/18/2020, 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

    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.


LRB101 20594 BMS 70225 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4989LRB101 20594 BMS 70225 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
5Sections 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
8shall obtain a separate license for each licensed location.
9Application for such license shall be in writing under oath and
10in the form prescribed and furnished by the Secretary. Each
11application 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 applicant
17    is a corporation;
18        (b) The county and municipality, with street and
19    number, if any, where the community currency exchange is to
20    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
23application shall be accompanied by a fee of $1,000 for the
24cost of investigating the applicant. A licensee's application
25for licenses for additional licensed locations shall be
26accompanied by a fee of $1,500 $1,000 for each additional

 

 

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1license. If the ownership of a licensee or licensed location
2changes, in whole or in part, a new application must be filed
3pursuant to this Section along with a $500 fee if the
4licensee's ownership interests have been transferred or sold to
5a new person or entity or a fee of $300 if the licensee's
6ownership interests have been transferred or sold to a current
7holder or holders of the licensee's ownership interests. When
8the application for a community currency exchange license has
9been approved by the Secretary and the applicant so advised, an
10additional sum of $500 $400 as an annual license fee for a
11period terminating on the last day of the current calendar year
12shall be paid to the Secretary by the applicant; provided, that
13the license fee for an applicant applying for such a license
14after July 1st of any year shall be $250 $200 for the balance
15of such year. Upon receipt of a community currency exchange
16license application, the Secretary shall examine the
17application for completeness and notify the applicant in
18writing of any defect within 20 days after receipt. The
19applicant must remedy the defect within 10 days after the
20mailing of the notification of the defect by the Secretary.
21Failure to timely remedy the defect will void the application.
22Once the Secretary determines that the application is complete,
23the Secretary shall have 90 business days to approve or deny
24the application. If the application is denied, the Secretary
25shall send by United States mail notice of the denial to the
26applicant at the address set forth in the application. If an

 

 

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1application is denied, the applicant may, within 10 days after
2the date of the notice of denial, make a written request to the
3Secretary for a hearing on the application. The hearing shall
4be set for a date after the receipt by the Secretary of the
5request for a hearing, and written notice of the time and place
6of the hearing shall be mailed to the applicant no later than
715 days before the date of the hearing. The hearing shall be
8scheduled for a date within 56 days after the date of the
9receipt of the request for a hearing. The applicant shall pay
10the actual cost of making the transcript of the hearing prior
11to the Secretary's issuing his or her decision. The Secretary's
12decision is subject to review as provided in Section 22.01 of
13this Act.
14    An application for an ambulatory currency exchange license
15shall be accompanied by a fee of $1,000 $100, which fee shall
16be for the cost of investigating the applicant. An approved
17applicant shall not be required to pay the initial
18investigation fee of $1,000 $100 more than once. When the
19application for an ambulatory currency exchange license has
20been approved by the Secretary, and such applicant so advised,
21such applicant shall pay an annual license fee of $500 $25 for
22each and every location to be served by such applicant;
23provided that such license fee for an approved applicant
24applying 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
26location to be served by such applicant. Such an approved

 

 

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1applicant for an ambulatory currency exchange license, when
2applying for a license with respect to a particular location,
3shall file with the Secretary, at the time of filing an
4application, a letter of memorandum, which shall be in writing
5and under oath, signed by the owner or authorized
6representative of the business whose employees are to be
7served; such letter or memorandum shall contain a statement
8that such service is desired, and that the person signing the
9same is authorized so to do. The Secretary shall thereupon
10verify the authenticity of the letter or memorandum and the
11authority of the person who executed it, to do so.
12    The Department shall have 45 business days to approve or
13deny a licensee's request to purchase another currency
14exchange.
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
18or more licensees desire to consolidate their places of
19business, they shall make application for such consolidation to
20the Secretary upon a form provided by him or her. This
21application shall state: (a) the name to be adopted and the
22location at which the business is to be located, which name and
23location shall be the same as one of the consolidating
24licensees; (b) that the owners or all partners or all
25stockholders or all members, as the case may be, of the

 

 

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1licensees involved in the contemplated consolidation, have
2approved the application; (c) a certification by the secretary,
3if any of the licensees be corporations, that the contemplated
4consolidation has been approved by all of the stockholders at a
5properly convened stockholders meeting; (d) other relevant
6information the Secretary may require. Simultaneously with the
7approval of the application by the Secretary, the licensee or
8licensees who will cease doing business shall: (a) surrender
9their license or licenses to the Secretary; (b) transfer all of
10their assets and liabilities to the licensee continuing to
11operate by virtue of the application; (c) apply to the
12Secretary of State, if they be corporations, for surrender of
13their corporate charter in accordance with the provisions of
14the Business Corporation Act of 1983.
15    An application for consolidation shall be approved or
16rejected by the Secretary within 30 days after receipt by him
17of such application and supporting documents required
18thereunder. The Secretary shall impose a consolidation fee of
19$500 $100 per application.
20    Such consolidation shall not affect suits pending in which
21the surrendering licensees are parties; nor shall such
22consolidation affect causes of action nor the rights of persons
23in particular; nor shall suits brought against such licensees
24in their former names be abated for that cause.
25    Nothing contained herein shall limit or prohibit any action
26or remedy available to a licensee or to the Secretary under

 

 

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1Sections 15, 15.1 to 15.1e or 15.2 of this Act.
2(Source: P.A. 97-315, eff. 1-1-12.)
 
3    (205 ILCS 405/14)  (from Ch. 17, par. 4823)
4    Sec. 14. Every licensee, shall, on or before November 15,
5pay to the Secretary the annual license fee or fees for the
6next succeeding calendar year and shall at the same time file
7with the Secretary the annual bond or bonds and the insurance
8policy or policies as and if required by this Act. The annual
9license fee for each community currency exchange shall be $500
10$400 for each licensee and $500 $400 for each additional
11licensed location. The annual license fee for each location
12served by an ambulatory currency exchange shall be $500 $25.
13(Source: P.A. 99-445, eff. 1-1-16; 99-549, eff. 7-15-16.)
 
14    (205 ILCS 405/16)  (from Ch. 17, par. 4832)
15    Sec. 16. Annual report; investigation; costs.
16    (a) Each licensee shall annually, on or before the 1st day
17of March, file a report with the Secretary for the calendar
18year period from January 1st through December 31st, giving such
19relevant information as the Secretary may reasonably require
20concerning, and for the purpose of examining, the business and
21operations during the preceding fiscal year period of each
22licensed currency exchange conducted by such licensee within
23the State. Such report shall be made under oath and shall be in
24the form prescribed by the Secretary. The Secretary may at any

 

 

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1time, and shall at least once in each year, investigate the
2currency exchange business of any licensee and of every person,
3partnership, association, limited liability company, and
4corporation who or which shall be engaged in the business of
5operating a currency exchange. For that purpose, the Secretary
6shall have free access to the offices and places of business
7and to such records of all such persons, firms, partnerships,
8associations, limited liability companies and members thereof,
9and corporations and to the officers and directors thereof that
10shall relate to such currency exchange business. The
11investigation may be conducted in conjunction with
12representatives of other State agencies or agencies of another
13state or of the United States as determined by the Secretary.
14The Secretary may at any time inspect the locations served by
15an ambulatory currency exchange, for the purpose of determining
16whether such currency exchange is complying with the provisions
17of this Act at each location served. The Secretary may require
18by subpoena the attendance of and examine under oath all
19persons whose testimony he may require relative to such
20business, and in such cases the Secretary, or any qualified
21representative of the Secretary whom the Secretary may
22designate, may administer oaths to all such persons called as
23witnesses, and the Secretary, or any such qualified
24representative of the Secretary, may conduct such
25examinations, and there shall be paid to the Secretary for each
26such examination a fee of $500 $250 for each day or part

 

 

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1thereof for each qualified representative designated and
2required to conduct the examination; provided, however, that in
3the case of an ambulatory currency exchange, such fee shall be
4$150 for each day or part thereof.
5    (b) Confidentiality. All information collected by the
6Department in the course of an examination or investigation of
7an ambulatory or community currency exchange or applicant,
8including, by not limited to, any complaint against an
9ambulatory or community currency exchange filed with the
10Department, and information collected to investigate any such
11complaint shall be maintained for the confidential use of the
12Department and shall not be disclosed. The Department may not
13disclose such information to anyone other than law enforcement
14officials, other regulatory agencies that have an appropriate
15regulatory interest as determined by the Secretary, or to a
16party presenting a lawful subpoena to the Department.
17Information and documents disclosed to a federal, State,
18county, or local law enforcement agency shall not be disclosed
19by the agency for any purpose to any other agency or person. A
20formal complaint filed against a licensee by the Department or
21any order issued by the Department against a licensee shall be
22a public record, except as otherwise prohibited by law.
23(Source: P.A. 97-315, eff. 1-1-12.)
 
24    Section 10. The Sales Finance Agency Act is amended by
25changing Sections 5 and 6 as follows:
 

 

 

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1    (205 ILCS 660/5)  (from Ch. 17, par. 5205)
2    Sec. 5. If a licensee fails to renew his or her license by
3the 1st 31st day of December, it shall automatically expire on
4the 31st day of December and the licensee is not entitled to a
5hearing; however, the Director in his or her discretion, may
6reinstate an expired license upon payment of the annual renewal
7fee, and proof of good cause for failure to renew, and payment
8of an additional fee for failure to renew in a timely manner as
9determined by the Director.
10(Source: P.A. 90-437, eff. 1-1-98.)
 
11    (205 ILCS 660/6)  (from Ch. 17, par. 5206)
12    Sec. 6. A license fee of $1,250 $300 for the applicant's
13principal place of business and $1,000 $100 for each additional
14place of business for which a license is sought must be
15submitted with an application for license made before July 1 of
16any year. If application for a license is made on July 1 or
17thereafter, a license fee of $150 for the principal place of
18business and of $50 for each additional place of business must
19accompany the application. Each license remains in force until
20surrendered, suspended, or revoked. If the application for
21license is denied, the original license fee shall be retained
22by the State in reimbursement of its costs of investigating
23that application.
24    Before the license is granted, the applicant shall prove in

 

 

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1form satisfactory to the Director, that the applicant has a
2positive net worth of a minimum of $30,000.
3    A licensee must pay to the Department, and the Department
4must receive, by December 1 of each year, the renewal license
5application on forms prescribed by the Director and the
6following renewal fee $300 for the license for his principal
7place of business and one-half of the following renewal fee
8$100 for each additional license held as a renewal license fee
9for the succeeding calendar year: .
10TOTAL TRANSACTIONS RENEWAL FEE
11500 or less.................... $500
12More than 500 and
13up to and including 1,000......
14$500 plus $10 per 50 transactions in excess of 500 transactions
15More than 1,000 and
16up to and including 10,000.....
17$1,000 plus $5 per 100 transactions in excess of 1,000 transactions
18More than 10,000 and
19up to and including 100,000....
20$1,450 plus $2.50 per 1,000 transactions in excess of 10,000 transactions
21More than 100,000..............
22$1,675 plus $1.25 per 10,000 transactions in excess of 100,000 transactions

 

 

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1    As used in this Section, "transactions" means loans made or
2acquired pursuant to this Act during the calendar year
3preceding the calendar year for which a licensee seeks to renew
4its license.
5(Source: P.A. 92-398, eff. 1-1-02.)
 
6    Section 15. The Debt Management Service Act is amended by
7changing Sections 4 and 6 as follows:
 
8    (205 ILCS 665/4)  (from Ch. 17, par. 5304)
9    Sec. 4. Application for license. Application for a license
10to engage in the debt management service business in this State
11shall be made to the Secretary and shall be in writing, under
12oath, and in the form prescribed by the Secretary.
13    Each applicant, at the time of making such application,
14shall pay to the Secretary the sum of $1,250 $30.00 as a fee
15for investigation of the applicant, and the additional sum of
16$100.00 as a license fee.
17    Every applicant shall submit to the Secretary, at the time
18of the application for a license, a bond to be approved by the
19Secretary in which the applicant shall be the obligor, in the
20sum of $25,000 or such additional amount as required by the
21Secretary based on the amount of disbursements made by the
22licensee in the previous year, and in which an insurance
23company, which is duly authorized by the State of Illinois, to
24transact the business of fidelity and surety insurance shall be

 

 

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1a surety.
2    The bond shall run to the Secretary for the use of the
3Department or of any person or persons who may have a cause of
4action against the obligor in said bond arising out of any
5violation of this Act or rules by a license. Such bond shall be
6conditioned that the obligor will faithfully conform to and
7abide by the provisions of this Act and of all rules,
8regulations and directions lawfully made by the Secretary and
9will pay to the Secretary or to any person or persons any and
10all money that may become due or owing to the State or to such
11person or persons, from said obligor under and by virtue of the
12provisions of this Act.
13(Source: P.A. 96-1420, eff. 8-3-10.)
 
14    (205 ILCS 665/6)  (from Ch. 17, par. 5306)
15    Sec. 6. Renewal of license. Each debt management service
16provider under the provisions of this Act may make application
17to the Secretary for renewal of its license, which application
18for renewal shall be on the form prescribed by the Secretary
19and shall be accompanied by a fee of $1,000 $100.00 together
20with a bond or other surety as required, in a minimum amount of
21$25,000 or such an amount as required by the Secretary based on
22the amount of disbursements made by the licensee in the
23previous year. The application must be received by the
24Department no later than December 1 of the year preceding the
25year for which the application applies.

 

 

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1(Source: P.A. 96-1420, eff. 8-3-10.)
 
2    Section 20. The Consumer Installment Loan Act is amended by
3changing Sections 2, 4, 8, 11, and 12.5 as follows:
 
4    (205 ILCS 670/2)  (from Ch. 17, par. 5402)
5    Sec. 2. Application; fees; positive net worth. Application
6for such license shall be in writing, and in the form
7prescribed by the Director. Such applicant at the time of
8making such application shall pay to the Director the sum of
9$1,250 $300 as an application fee and the additional sum of
10$450 as an annual license fee, for a period terminating on the
11last day of the current calendar year; provided that if the
12application is filed after June 30th in any year, such license
13fee shall be 1/2 of the annual license fee for such year.
14    Before the license is granted, every applicant shall prove
15in form satisfactory to the Director that the applicant has and
16will maintain a positive net worth of a minimum of $30,000.
17Every applicant and licensee shall maintain a surety bond in
18the principal sum of $25,000 issued by a bonding company
19authorized to do business in this State and which shall be
20approved by the Director. Such bond shall run to the Director
21and shall be for the benefit of any consumer who incurs damages
22as a result of any violation of the Act or rules by a licensee.
23If the Director finds at any time that a bond is of
24insufficient size, is insecure, exhausted, or otherwise

 

 

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1doubtful, an additional bond in such amount as determined by
2the Director shall be filed by the licensee within 30 days
3after written demand therefor by the Director. "Net worth"
4means total assets minus total liabilities.
5(Source: P.A. 92-398, eff. 1-1-02; 93-32, eff. 7-1-03.)
 
6    (205 ILCS 670/4)  (from Ch. 17, par. 5404)
7    Sec. 4. Investigation to determine whether license shall be
8issued. Upon the filing of an application and the payment of
9the fee, the Director shall investigate to determine (1) that
10the reputation of the applicant, including managers of a
11limited liability company, partners, owners, officers or
12directors thereof is such as to warrant belief that the
13business will be operated honestly and fairly within the
14purposes of this Act and (2) that the applicant meets the
15positive net worth requirement set forth in Section 2 of this
16Act. Unless the Director makes findings hereinabove
17enumerated, he or she shall not issue a license and shall
18notify the applicant of the denial and return to the applicant
19the sum paid by the applicant as a license fee, but shall
20retain the $1,250 $300 application fee. The Director shall
21approve or deny every application for license hereunder within
2260 days from the filing thereof with the fee.
23(Source: P.A. 90-437, eff. 1-1-98; 90-575, eff. 3-20-98.)
 
24    (205 ILCS 670/8)  (from Ch. 17, par. 5408)

 

 

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1    Sec. 8. Annual license fee; expenses fee - Expenses. Before
2the 1st day of each December, a licensee must pay to the
3Director, and the Department must receive, an the annual
4license fee calculated as set forth in the following required
5by Section 2 for the next succeeding calendar year. The license
6shall expire on the first of January unless the license fee has
7been paid prior thereto.
8TOTAL TRANSACTIONS RENEWAL FEE
9500 or less.................... $500
10More than 500 and
11up to and including 1,000......
12$500 plus $10 per 50 transactions in excess of 500 transactions
13More than 1,000 and
14up to and including 10,000.....
15$1,000 plus $5 per 100 transactions in excess of 1,000 transactions
16More than 10,000 and
17up to and including 100,000....
18$1,450 plus $2.50 per 1,000 transactions in excess of 10,000 transactions
19More than 100,000..............
20$1,675 plus $1.25 per 10,000 transactions in excess of 100,000 transactions
21    As used in this Section, "transactions" means loans made
22pursuant to this Act during the calendar year preceding the

 

 

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1calendar year for which a licensee seeks to renew its license.
2    In addition to such license fee, the reasonable expense of
3any examination, investigation or custody by the Director under
4any provisions of this Act shall be borne by the licensee.
5    If a licensee fails to renew his or her license by the 1st
631st day of December, it shall automatically expire on the 31st
7of December and the licensee is not entitled to a hearing;
8however, the Director, in his or her discretion, may reinstate
9an expired license upon payment of the annual renewal fee, and
10proof of good cause for failure to renew, and payment of an
11additional fee for failure to renew in a timely manner as
12determined by the Director.
13(Source: P.A. 100-958, eff. 8-19-18.)
 
14    (205 ILCS 670/11)  (from Ch. 17, par. 5411)
15    Sec. 11. Books and records - Reports.
16    (a) Every licensee shall retain and use in his business or
17at another location approved by the Director such records as
18are required by the Director to enable the Director to
19determine whether the licensee is complying with the provisions
20of this Act and the rules and regulations promulgated pursuant
21to this Act. Every licensee shall preserve the records of any
22loan for at least 2 years after making the final entry for such
23loan. Accounting systems maintained in whole or in part by
24mechanical or electronic data processing methods which provide
25information equivalent to that otherwise required and follow

 

 

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1generally accepted accounting principles are acceptable for
2that purpose, if approved by the Director in writing.
3    (b) Each licensee shall annually, on or before the first
4day of March, file a report with the Director giving such
5relevant information as the Director may reasonably require
6concerning the business and operations during the preceding
7calendar year of each licensed place of business conducted by
8the licensee. The report must be received by the Department on
9or before March 1. The report shall be made under oath and in a
10form prescribed by the Director. Whenever a licensee operates 2
11or more licensed offices or whenever 2 or more affiliated
12licensees operate licensed offices, a composite report of such
13group of licensed offices may be filed in lieu of individual
14reports. The Director may make and publish annually an analysis
15and recapitulation of such reports. The Director may fine each
16licensee $500 $25 for each day beyond March 1 such report is
17filed.
18(Source: P.A. 92-398, eff. 1-1-02.)
 
19    (205 ILCS 670/12.5)
20    Sec. 12.5. Limited purpose branch.
21    (a) Upon the written approval of the Director, a licensee
22may maintain a limited purpose branch for the sole purpose of
23making loans as permitted by this Act. A limited purpose branch
24may include an automatic loan machine. No other activity shall
25be conducted at the site, including but not limited to,

 

 

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1accepting payments, servicing the accounts, or collections.
2    (b) The licensee must submit an application for a limited
3purpose branch to the Director on forms prescribed by the
4Director with an application fee of $1,250 $300. The approval
5for the limited purpose branch must be renewed concurrently
6with the renewal of the licensee's license along with a renewal
7fee as set forth in Section 8 of $300 for the limited purpose
8branch.
9    (c) The books, accounts, records, and files of the limited
10purpose branch's transactions shall be maintained at the
11licensee's licensed location. The licensee shall notify the
12Director of the licensed location at which the books, accounts,
13records, and files shall be maintained.
14    (d) The licensee shall prominently display at the limited
15purpose branch the address and telephone number of the
16licensee's licensed location.
17    (e) No other business shall be conducted at the site of the
18limited purpose branch unless authorized by the Director.
19    (f) The Director shall make and enforce reasonable rules
20for the conduct of a limited purpose branch.
21    (g) A limited purpose branch may not be located within
221,000 feet of a facility operated by an inter-track wagering
23licensee or an organization licensee subject to the Illinois
24Horse Racing Act of 1975, on a riverboat or in a casino subject
25to the Illinois Gambling Act, or within 1,000 feet of the
26location at which the riverboat docks or within 1,000 feet of a

 

 

HB4989- 20 -LRB101 20594 BMS 70225 b

1casino.
2(Source: P.A. 101-31, eff. 6-28-19.)
 
3    Section 25. The Payday Loan Reform Act is amended by
4changing Sections 2-55 and 3-5 as follows:
 
5    (815 ILCS 122/2-55)
6    Sec. 2-55. Information, reporting, and examination.
7    (a) A licensee shall keep and use books, accounts, and
8records that will enable the Secretary to determine if the
9licensee is complying with the provisions of this Act and
10maintain any other records as required by the Secretary.
11    (b) A licensee shall collect and maintain information
12annually for a report that shall disclose in detail and under
13appropriate headings:
14        (1) the total number of payday loans made during the
15    preceding calendar year;
16        (2) the total number of payday loans outstanding as of
17    December 31 of the preceding calendar year;
18        (3) the minimum, maximum, and average dollar amount of
19    payday loans made during the preceding calendar year;
20        (4) the average annual percentage rate and the average
21    term of payday loans made during the preceding calendar
22    year; and
23        (5) the total number of payday loans paid in full, the
24    total number of loans that went into default, and the total

 

 

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1    number of loans written off during the preceding calendar
2    year.
3    The report shall be verified by the oath or affirmation of
4the owner, manager, or president of the licensee. The report
5must be filed with the Secretary no later than March 1 of the
6year following the year for which the report discloses the
7information specified in this subsection (b). The Secretary may
8impose upon the licensee a fine of $500 $25 per day for each
9day beyond the filing deadline that the report is not filed.
10    (c) No later than July 31 of the second year following the
11effective date of this Act, the Department shall publish a
12biennial report that contains a compilation of aggregate data
13concerning the payday lending industry and shall make the
14report available to the Governor, the General Assembly, and the
15general public.
16    (d) The Department shall have the authority to conduct
17examinations of the books, records, and loan documents at any
18time.
19(Source: P.A. 94-13, eff. 12-6-05.)
 
20    (815 ILCS 122/3-5)
21    Sec. 3-5. Licensure.
22    (a) A license to make a payday loan shall state the
23address, including city and state, at which the business is to
24be conducted and shall state fully the name of the licensee.
25The license shall be conspicuously posted in the place of

 

 

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1business of the licensee and shall not be transferable or
2assignable.
3    (b) An application for a license shall be in writing and in
4a form prescribed by the Secretary. The Secretary may not issue
5a payday loan license unless and until the following findings
6are made:
7        (1) that the financial responsibility, experience,
8    character, and general fitness of the applicant are such as
9    to command the confidence of the public and to warrant the
10    belief that the business will be operated lawfully and
11    fairly and within the provisions and purposes of this Act;
12    and
13        (2) that the applicant has submitted such other
14    information as the Secretary may deem necessary.
15    (c) A license shall be issued for no longer than one year,
16and no renewal of a license may be provided if a licensee has
17substantially violated this Act and has not cured the violation
18to the satisfaction of the Department.
19    (d) A licensee shall appoint, in writing, the Secretary as
20attorney-in-fact upon whom all lawful process against the
21licensee may be served with the same legal force and validity
22as if served on the licensee. A copy of the written
23appointment, duly certified, shall be filed in the office of
24the Secretary, and a copy thereof certified by the Secretary
25shall be sufficient evidence to subject a licensee to
26jurisdiction in a court of law. This appointment shall remain

 

 

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1in effect while any liability remains outstanding in this State
2against the licensee. When summons is served upon the Secretary
3as attorney-in-fact for a licensee, the Secretary shall
4immediately notify the licensee by registered mail, enclosing
5the summons and specifying the hour and day of service.
6    (e) A licensee must pay an initial annual fee of $1,250 and
7an annual renewal fee as set forth in the following: $1,000.
8TOTAL TRANSACTIONS RENEWAL FEE
9500 or less.................... $500
10More than 500 and
11up to and including 1,000......
12$500 plus $10 per 50 transactions in excess of 500 transactions
13More than 1,000 and
14up to and including 10,000.....
15$1,000 plus $5 per 100 transactions in excess of 1,000 transactions
16More than 10,000 and
17up to and including 100,000....
18$1,450 plus $2.50 per 1,000 transactions in excess of 10,000 transactions
19More than 100,000..............
20$1,675 plus $1.25 per 10,000 transactions in excess of 100,000 transactions
21    As used in this Section, "transactions" means loans made or
22acquired pursuant to this Act during the calendar year

 

 

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1preceding the calendar year for which a licensee seeks to renew
2its license.
3    
In addition to the license fee, the reasonable expense of
4any examination or hearing by the Secretary under any
5provisions of this Act shall be borne by the licensee. If a
6licensee fails to renew its license by December 1, its license
7shall automatically expire on December 31
; however, the
8Secretary, in his or her discretion, may reinstate an expired
9license upon:
10        (1) payment of the annual fee within 30 days of the
11    date of expiration; and
12        (2) proof of good cause for failure to renew; and .
13        (3) payment of an additional fee for failure to renew
14    in a timely manner as determined by the Secretary.
15    (f) Not more than one place of business shall be maintained
16under the same license, but the Secretary may issue more than
17one license to the same licensee upon compliance with all the
18provisions of this Act governing issuance of a single license.
19The location, except those locations already in existence as of
20June 1, 2005, may not be within one mile of a horse race track
21subject to the Illinois Horse Racing Act of 1975, within one
22mile of a facility at which gambling is conducted under the
23Illinois Gambling Act, within one mile of the location at which
24a riverboat subject to the Illinois Gambling Act docks, or
25within one mile of any State of Illinois or United States
26military base or naval installation.

 

 

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1    (g) No licensee shall conduct the business of making loans
2under this Act within any office, suite, room, or place of
3business in which (1) any loans are offered or made under the
4Consumer Installment Loan Act other than title secured loans as
5defined in subsection (a) of Section 15 of the Consumer
6Installment Loan Act and governed by Title 38, Section 110.330
7of the Illinois Administrative Code or (2) any other business
8is solicited or engaged in unless the other business is
9licensed by the Department or, in the opinion of the Secretary,
10the other business would not be contrary to the best interests
11of consumers and is authorized by the Secretary in writing.
12    (g-5) Notwithstanding subsection (g) of this Section, a
13licensee may obtain a license under the Consumer Installment
14Loan Act (CILA) for the exclusive purpose and use of making
15title secured loans, as defined in subsection (a) of Section 15
16of CILA and governed by Title 38, Section 110.300 of the
17Illinois Administrative Code. A licensee may continue to
18service Consumer Installment Loan Act loans that were
19outstanding as of the effective date of this amendatory Act of
20the 96th General Assembly.
21    (h) The Secretary shall maintain a list of licensees that
22shall be available to interested consumers and lenders and the
23public. The Secretary shall maintain a toll-free number whereby
24consumers may obtain information about licensees. The
25Secretary shall also establish a complaint process under which
26an aggrieved consumer may file a complaint against a licensee

 

 

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1or non-licensee who violates any provision of this Act.
2(Source: P.A. 100-958, eff. 8-19-18; 101-31, eff. 6-28-19.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.