SB0024 93rd General Assembly

093_SB0024

 
                                     LRB093 02172 JLS 03494 b

 1        AN ACT concerning transmitters of money.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The  Transmitters of Money Act is amended by
 5    changing Sections 5, 25, 40, 45,  55,  65,  75,  and  90  and
 6    adding Section 93 as follows:

 7        (205 ILCS 657/5)
 8        Sec.  5.  Definitions.   As  used in this Act, unless the
 9    context otherwise requires, the words and phrases defined  in
10    this Section have the meanings set forth in this Section.
11        "Authorized  seller"  means a person not an employee of a
12    licensee who engages in the business regulated by this Act on
13    behalf of a licensee under a contract between that person and
14    the licensee.
15        "Bill payment service" means the business of transmitting
16    money on behalf of an Illinois resident for  the  purpose  of
17    paying the resident's bills.
18        "Controlling person" means a person owning or holding the
19    power   to  vote  25%  or  more  of  the  outstanding  voting
20    securities of a licensee or the power to vote the  securities
21    of  another controlling person of the licensee.  For purposes
22    of determining the percentage of a licensee controlled  by  a
23    controlling  person,  the person's interest shall be combined
24    with the interest of any other person controlled, directly or
25    indirectly, by that person or by a spouse, parent,  or  child
26    of that person.
27        "Department"    means   the   Department   of   Financial
28    Institutions.
29        "Director" means the Director of Financial Institutions.
30        "Licensee" means a person licensed under this Act.
31        "Location" means a place of business  at  which  activity



 
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 1    regulated by this Act occurs.
 2        "Material   litigation"   means   any   litigation  that,
 3    according to generally  accepted  accounting  principles,  is
 4    deemed significant to a licensee's financial health and would
 5    be  required  to be referenced in a licensee's annual audited
 6    financial statements, reports  to  shareholders,  or  similar
 7    documents.
 8        "Money"  means a medium of exchange that is authorized or
 9    adopted by a domestic or foreign government as a part of  its
10    currency  and  that  is  customarily  used  and accepted as a
11    medium of exchange in the country of issuance.
12        "Money transmitter" means a person who is located  in  or
13    doing  business  in  this  State  and who directly or through
14    authorized sellers does any of the following in this State:
15             (1)  Sells or issues payment instruments.
16             (2)  Engages in the business of receiving money  for
17        transmission or transmitting money.
18             (3)  Engages  in  the  business  of  exchanging, for
19        compensation, money of the United States Government or  a
20        foreign   government   to   or   from  money  of  another
21        government.
22        "Outstanding payment instrument" means, unless  otherwise
23    treated   by   or  accounted  for  under  generally  accepted
24    accounting principles on the books of the licensee, a payment
25    instrument issued by the licensee that has been sold  in  the
26    United  States  directly  by the licensee or has been sold in
27    the United States by an authorized seller of the licensee and
28    reported to the licensee as having been  sold,  but  has  not
29    been paid by or for the licensee.
30        "Payment  instrument"  means a check, draft, money order,
31    traveler's check, stored value card, or other  instrument  or
32    memorandum,   written   order  or  written  receipt  for  the
33    transmission or payment of money sold or  issued  to  one  or
34    more  persons  whether  or  not  that  instrument or order is
 
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 1    negotiable.   Payment  instrument   does   not   include   an
 2    instrument that is redeemable by the issuer in merchandise or
 3    service,  a  credit  card  voucher, or a letter of credit.  A
 4    written order for the transmission or payment of  money  that
 5    results  in  the  issuance  of  a  check, draft, money order,
 6    traveler's check, or other instrument or memorandum is not  a
 7    payment instrument.
 8        "Person"  means  an individual, partnership, association,
 9    joint stock association, corporation, or any  other  form  of
10    business organization.
11        "Transmitting  money"  means the transmission of money by
12    any means,  including  transmissions  to  or  from  locations
13    within  the United States or to and from locations outside of
14    the  United  States  by  payment  instrument,  facsimile   or
15    electronic  transfer, or otherwise, and includes bill payment
16    services.
17    (Source: P.A. 92-400, eff. 1-1-02.)

18        (205 ILCS 657/25)
19        Sec. 25.  Application for license.
20        (a)  An application for a license  must  be  in  writing,
21    under  oath,  and  in  the form the Director prescribes.  The
22    application must contain or be  accompanied  by  all  of  the
23    following:
24             (1)  The  name  of  the applicant and the address of
25        the principal place of business of the applicant and  the
26        address  of  all  locations and proposed locations of the
27        applicant in this State.
28             (2)  The  form  of  business  organization  of   the
29        applicant, including:
30                  (A)  a  copy  of  its articles of incorporation
31             and amendments thereto and a  copy  of  its  bylaws,
32             certified  by  its  secretary, if the applicant is a
33             corporation;
 
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 1                  (B)  a  copy  of  its  partnership   agreement,
 2             certified  by  a  partner,  if  the  applicant  is a
 3             partnership; or
 4                  (C)  a copy of the documents that  control  its
 5             organizational  structure,  certified  by a managing
 6             official, if the  applicant  is  organized  in  some
 7             other form.
 8             (3)  The    name,   business   and   home   address,
 9        fingerprints, and a chronological summary of the business
10        experience,  material  litigation  history,  and   felony
11        convictions over the preceding 10 years of:
12                  (A)  the  proprietor,  if  the  applicant is an
13             individual;
14                  (B)  every  partner,  if  the  applicant  is  a
15             partnership;
16                  (C)  each officer,  director,  and  controlling
17             person, if the applicant is a corporation; and
18                  (D)  each  person  in  a  position  to exercise
19             control over, or direction of, the business  of  the
20             applicant, regardless of the form of organization of
21             the applicant.
22             (4)  Financial  statements,  not  more than one year
23        old,  prepared  in  accordance  with  generally  accepted
24        accounting principles and audited by  a  licensed  public
25        accountant  or  certified  public  accountant showing the
26        financial condition of the  applicant  and  an  unaudited
27        balance  sheet  and statement of operation as of the most
28        recent  quarterly  report  before   the   date   of   the
29        application,  certified by the applicant or an officer or
30        partner thereof.  If the  applicant  is  a  wholly  owned
31        subsidiary  or  is  eligible to file consolidated federal
32        income tax returns with its  parent,  however,  unaudited
33        financial  statements  for  the preceding year along with
34        the unaudited financial statements for  the  most  recent
 
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 1        quarter  may  be  submitted if accompanied by the audited
 2        financial  statements  of  the  parent  company  for  the
 3        preceding  year  along  with  the   unaudited   financial
 4        statement for the most recent quarter.
 5             (5)  Filings  of  the  applicant with the Securities
 6        and Exchange Commission or similar  foreign  governmental
 7        entity (English translation), if any.
 8             (6)  A  list  of  all  other  states  in  which  the
 9        applicant  is licensed as a money transmitter and whether
10        the license of the applicant for those purposes has  ever
11        been  withdrawn,  refused,  canceled, or suspended in any
12        other state, with full details.
13             (7)  A list of all money transmitter  locations  and
14        proposed locations in this State.
15             (8)  A   sample   of  the  contract  for  authorized
16        sellers.
17             (9)  A  sample  form   of   the   proposed   payment
18        instruments to be used in this State.
19             (10)  The  name and business address of the clearing
20        banks through which the applicant intends to conduct  any
21        business regulated under this Act.
22             (11)  A  surety  bond  as  required by Section 30 of
23        this Act.
24             (12)  The applicable fees as required by Section  45
25        of this Act.
26             (13)  A  written  consent  to  service of process as
27        provided by Section 100 of this Act.
28             (14)  A written statement that the applicant  is  in
29        full  compliance  with  and  agrees  to continue to fully
30        comply  with  all  state   and   federal   statutes   and
31        regulations relating to money laundering.
32             (15)  All   additional   information   the  Director
33        considers necessary in order to determine whether or  not
34        to issue the applicant a license under this Act.
 
                            -6-      LRB093 02172 JLS 03494 b
 1        (b)  The  Director  may,  for good cause shown, waive, in
 2    part, any of the requirements of this Section.
 3    (Source: P.A. 92-400, eff. 1-1-02.)

 4        (205 ILCS 657/40)
 5        Sec.  40.  Renewals  of  license.   As  a  condition  for
 6    renewal of a license, a licensee must submit to the Director,
 7    and the Director must receive, on or  before  December  1  of
 8    each  year,  an  application  for renewal made in writing and
 9    under oath on a form prescribed by the Director.  A  licensee
10    whose   application  for  renewal  is  not  received  by  the
11    Department on or  before  December  31  shall  not  have  its
12    license  renewed  and  shall  be  required  to  submit to the
13    Director an application for a new license in accordance  with
14    Section  25.   Upon a showing of good cause, the Director may
15    extend the deadline for the  filing  of  an  application  for
16    renewal.   The  application  for  renewal  of a license shall
17    contain or be accompanied by all of the following:
18             (1)  The name of the licensee and the address of the
19        principal place of business of the licensee.
20             (2)  A list of all locations where the  licensee  is
21        conducting  business  under its license and a list of all
22        authorized  sellers  through   whom   the   licensee   is
23        conducting  business  under  its  license,  including all
24        information regarding authorized sellers as  required  by
25        this Act the name and business address of each authorized
26        seller.
27             (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
32        renewal  has  been  approved.   The   audited   financial
33        statement  must  be  received  by the Department no later
 
                            -7-      LRB093 02172 JLS 03494 b
 1        than 120 days after the  end  of  the  licensee's  fiscal
 2        year.  If the licensee is a wholly owned subsidiary or is
 3        eligible  to file consolidated federal income tax returns
 4        with  its  parent,  the  licensee  may  submit  unaudited
 5        financial  statements  if  accompanied  by  the   audited
 6        financial  statements  of the parent company for its most
 7        recently ended year.
 8             (4)  A statement of the dollar amount and number  of
 9        money transmissions and payment instruments sold, issued,
10        exchanged,  or  transmitted in this State by the licensee
11        and its authorized sellers for the past year.
12             (5)  A statement of the dollar amount of uncompleted
13        money transmissions and payment  instruments  outstanding
14        or  in  transit,  in  this  State,  as of the most recent
15        quarter available.
16             (6)  The annual license renewal fees and any penalty
17        fees as provided by Section 45 of this Act.
18             (7)  Evidence   sufficient   to   prove    to    the
19        satisfaction  of  the  Director  that  the  licensee  has
20        complied  with all requirements under Section 20 relating
21        to its net worth, under Section 30 relating to its surety
22        bond or other security, and under Section 50 relating  to
23        permissible investments.
24             (8)  A statement of a change in information provided
25        by  the  licensee in its application for a license or its
26        previous applications  for  renewal  including,  but  not
27        limited  to, new directors, officers, authorized sellers,
28        or clearing banks and material changes in  the  operation
29        of the licensee's business.
30    (Source: P.A. 92-400, eff. 1-1-02.)

31        (205 ILCS 657/45)
32        Sec. 45.  Fees.
33        (a)  The  Director  shall  charge and collect fees, which
 
                            -8-      LRB093 02172 JLS 03494 b
 1    shall  be  nonrefundable  unless  otherwise   indicated,   in
 2    accordance with the provisions of this Act as follows:
 3             (1)  For  applying for a license, an application fee
 4        of $300 $100 and a license fee, which shall  be  refunded
 5        if  the  application is denied or withdrawn, of $300 $100
 6        plus $15 $10 for each location at which the applicant and
 7        its authorized sellers are conducting business or propose
 8        to conduct business excepting the  applicant's  principal
 9        place of business.
10             (2)  For  renewal  of  a license, a fee of $300 $100
11        plus $15 $10 for each location at which the licensee  and
12        its  authorized  sellers  are conducting business, except
13        the licensee's principal place of business.
14             (3)  For an application to add an authorized  seller
15        location, $15 $10 for each authorized seller location.
16             (4)  For service of process or other notice upon the
17        Director as provided by Section 100, a fee of $15 $10.
18             (5)  For  an  application  for  renewal of a license
19        received by the Department after December  1,  a  penalty
20        fee  of $100 $10 per day for each day after December 1 in
21        addition to any other fees required under this Act unless
22        an extension of time has been granted by the Director.
23             (6)  For failure to submit financial  statements  as
24        required by Section 40, a penalty fee of $100 $10 per day
25        for each day the statement is late unless an extension of
26        time has been granted by the Director.
27        (b)  Beginning  one year after the effective date of this
28    Act, the Director may, by rule, amend the fees set  forth  in
29    this Section.
30        (c)  All moneys received by the Department under this Act
31    shall be deposited into the Financial Institutions Fund.
32    (Source: P.A. 92-400, eff. 1-1-02.)

33        (205 ILCS 657/55)
 
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 1        Sec. 55.  Reporting; examination; investigation.
 2        (a)  The   Director  may  require  from  a  licensee  any
 3    reports, under penalty of perjury, concerning the  licensee's
 4    or  its  authorized  seller's  business  conducted  under the
 5    license issued under this Act  that  the  Director  considers
 6    necessary for the enforcement of this Act.
 7        (b)  A licensee must report to the Director any change of
 8    its  principal  place of business, or its headquarters office
 9    if different from its principal place of  business,  even  if
10    located  outside  of  this  State  and  a change of any other
11    location at which it or any of  its  authorized  sellers  are
12    conducting  business  regulated  by  this Act, within 15 days
13    after the effective date of the change.
14        (c)  A licensee must report to the Director  any  of  the
15    following  significant  developments  pertaining to it or any
16    authorized seller within  15  days  after  the  licensee  has
17    actual notice of its occurrence:
18             (1)  The filing for bankruptcy or for reorganization
19        under the bankruptcy laws.
20             (2)  The   institution   of  license  revocation  or
21        suspension procedures against the licensee in any state.
22             (3)  A  felony  indictment  related  to  the   money
23        transmission activities of the licensee or its authorized
24        sellers  in this State or of the licensee's or authorized
25        seller's, officers, directors,  controlling  persons,  or
26        principals.
27             (4)  A   felony  conviction  related  to  the  money
28        transmission activities of the licensee or its authorized
29        sellers in this State or of the licensee's or  authorized
30        seller's,  officers,  directors,  controlling  persons or
31        principals.
32        (d)  A licensee that is a publicly traded corporation  or
33    a   subsidiary   of   a  publicly  traded  corporation  or  a
34    nonpublicly  traded  corporation  must  notify  the  Director
 
                            -10-     LRB093 02172 JLS 03494 b
 1    within 15  days  whenever  a  person  becomes  a  controlling
 2    person.    Upon  notification,  the  Director may require all
 3    information he considers necessary  to  determine  if  a  new
 4    application  is required.  A licensee that is an entity other
 5    than a corporation shall submit  a  new  application  to  the
 6    Director seeking prior approval whenever a person proposes to
 7    become a controlling person or acquire an ownership interest.
 8        (e)  The Director at any time either in person or through
 9    an  appointed representative may visit and examine a licensee
10    or authorized seller.  Unless  it  will  interfere  with  the
11    Director's  duties under this Act, reasonable notice shall be
12    given to the licensee or authorized  seller.   In  conducting
13    the  examination,  the  Director  or appointed representative
14    shall have full and free access to all the books, papers, and
15    records of the licensee that relate to its  business  and  to
16    the  books, papers, and records kept by any of its authorized
17    sellers and may examine  the  directors,  officers,  members,
18    agents, and employees of any licensee or authorized seller or
19    any  other  person  in relation to its affairs, transactions,
20    and condition.
21        (f)  On-site  examinations  of  licensees  or  authorized
22    sellers  prescribed  by  this  Act  may   be   conducted   in
23    conjunction  with  representatives of other State agencies or
24    agencies of  another  state  or  of  the  United  States,  as
25    determined by the Director.
26        (g)  For  the  purpose  of defraying examination expenses
27    incurred by the Director, a  licensee  or  authorized  seller
28    shall  pay  an  examination  fee  established by rule and the
29    actual expenses of the examination.
30        (h)  A licensee shall provide the Director with a report,
31    in a form approved by the Director, of all  Cash  Transaction
32    Reports  and Suspicious Activity Reports required to be filed
33    with the federal government, whether by the licensee  or  any
34    authorized  sellers. The report shall be made to the Director
 
                            -11-     LRB093 02172 JLS 03494 b
 1    on a quarterly basis.
 2    (Source: P.A. 88-643, eff. 1-1-95.)

 3        (205 ILCS 657/65)
 4        Sec. 65.  Notice of  source  of  instrument;  transaction
 5    records.
 6        (a)  Every  payment instrument sold through an authorized
 7    seller shall bear the name  of  the  licensee  and  a  unique
 8    consecutive  number clearly stamped or imprinted on it.  When
 9    an order  for  the  transmission  of  money  results  in  the
10    issuance  of  a  payment  instrument,  both the order and the
11    payment instrument may bear the same unique number.
12        (b)  A licensee  or  authorized  seller  shall  create  a
13    record,  which may be reduced to computer or other electronic
14    medium, upon receiving any money from a customer.
15        (c)  For each payment instrument sold, the licensee shall
16    require the authorized seller to record the  face  amount  of
17    the  payment  instrument and the serial number of the payment
18    instrument.
19        (d)  For each transmission  of  money,  the  licensee  or
20    authorized  seller  shall  record  the  date  the  money  was
21    received, the face amount of the payment instrument, the name
22    of  the  customer,  the manner of transmission, including the
23    identity  and  location  of  any  bank  or  other   financial
24    institution  receiving or otherwise involved in accomplishing
25    the  transmission,  the  location  to  which  the  money   is
26    transmitted  if  different  from  the bank or other financial
27    institution required to be recorded, the name of the intended
28    recipient, and the date the transmission was accomplished  or
29    the money was refunded to the customer due to an inability to
30    transmit  or  failure of the intended recipient to receive or
31    obtain the money transmitted.  The transmission shall be made
32    by the licensee or authorized seller within 3  business  days
33    after  the  receipt  of  the  money  to  be transmitted.  The
 
                            -12-     LRB093 02172 JLS 03494 b
 1    licensee or authorized seller, in  addition  to  the  records
 2    required  to  be  kept,  shall issue a receipt to each person
 3    delivering  or  depositing  money  with   the   licensee   or
 4    authorized seller indicating the date of the transaction, the
 5    face  amount  of the payment instrument, to whom the money is
 6    to be transmitted, the service charge, the rate of  exchange,
 7    the  amount  of  funds stated in the currency received by the
 8    recipient, and the  name  and  address  of  the  licensee  or
 9    authorized  seller.   The licensee or authorized seller shall
10    keep a copy of every receipt in a permanent  record  book  or
11    maintain the data embodied in the receipt using photographic,
12    electronic, or other means.
13        (e)  For  each  exchange  of  money  of the United States
14    government or a  foreign  government  to  or  from  money  of
15    another  government,  the licensee or authorized seller shall
16    record the  date  of  the  transaction,  the  amount  of  the
17    transaction,  the  amount  of  funds  stated  in the currency
18    received by the recipient, and the rate of  exchange  at  the
19    time  of the transaction.  The licensee or authorized seller,
20    in addition to the records required to be kept, shall issue a
21    receipt to each person delivering or  depositing  money  with
22    the  licensee or authorized seller indicating the date of the
23    transaction, the  amount  of  the  transaction,  the  service
24    charge,   and  the  name  and  address  of  the  licensee  or
25    authorized seller making the transaction.   The  licensee  or
26    authorized  seller  shall  keep  a copy of every receipt in a
27    permanent record  book  or  maintain  data  embodied  in  the
28    receipt using photographic, electronic, or other means.
29        (f)  Records  required  to  be  kept  by  the licensee or
30    authorized seller under this Act shall be  preserved  for  at
31    least 5 years or as required to comply with any other Act the
32    administration  of  which  is  vested  in  the Director.  The
33    records shall be made available for examination in accordance
34    with Sections 55 and 60 of this Act.
 
                            -13-     LRB093 02172 JLS 03494 b
 1    (Source: P.A. 88-643, eff. 1-1-95.)

 2        (205 ILCS 657/75)
 3        Sec. 75.  Authorized sellers.
 4        (a)  A licensee may conduct the business regulated  under
 5    this  Act  at  one  or  more  locations in this State through
 6    authorized sellers designated by the licensee.
 7        (b)  A licensee shall not allow a person to  act  as  its
 8    authorized  seller  until all applicable requirements of this
 9    Act  have  been  complied  with  and  all  of  the  following
10    information name  and  address  of  the  person,  on  a  form
11    prescribed  by  the Director, along with all applicable fees,
12    has have been submitted to the Department by the licensee:.
13             (1)  The name of the seller and the address  of  the
14        principal place of business of the seller and the address
15        of  all locations and proposed locations of the seller in
16        this State.
17             (2)  The  form  of  business  organization  of   the
18        seller, including:
19                  (A)  a  copy  of  its articles of incorporation
20             and amendments thereto and a  copy  of  its  bylaws,
21             certified  by  its  secretary,  if  the  seller is a
22             corporation;
23                  (B)  a  copy  of  its  partnership   agreement,
24             certified   by   a  partner,  if  the  seller  is  a
25             partnership; or
26                  (C)  a copy of the documents that  control  its
27             organizational  structure,  certified  by a managing
28             official, if the seller is organized in  some  other
29             form.
30             (3)  The    name,   business   and   home   address,
31        fingerprints, and a chronological summary of the business
32        experience,  material  litigation  history,  and   felony
33        convictions over the preceding 10 years of:
 
                            -14-     LRB093 02172 JLS 03494 b
 1                  (A)  the   proprietor,  if  the  seller  is  an
 2             individual;
 3                  (B)  every  partner,  if  the   seller   is   a
 4             partnership;
 5                  (C)  each  officer,  director,  and controlling
 6             person, if the seller is a corporation; and
 7                  (D)  each person  in  a  position  to  exercise
 8             control  over,  or direction of, the business of the
 9             seller, regardless of the form  of  organization  of
10             the applicant.
11             (4)  Financial  statements,  not  more than one year
12        old,  prepared  in  accordance  with  generally  accepted
13        accounting principles and audited by  a  licensed  public
14        accountant  or  certified  public  accountant showing the
15        financial  condition  of  the  seller  and  an  unaudited
16        balance sheet and statement of operation as of  the  most
17        recent  quarterly  report,  certified by the seller or an
18        officer or partner thereof. If the applicant is a  wholly
19        owned  subsidiary  or  is  eligible  to file consolidated
20        federal income tax  returns  with  its  parent,  however,
21        unaudited  financial  statements  for  the preceding year
22        along with the unaudited  financial  statements  for  the
23        most  recent  quarter  may be submitted if accompanied by
24        the audited financial statements of  the  parent  company
25        for the preceding year along with the unaudited financial
26        statement for the most recent quarter.
27             (5)  Filings  of  the seller with the Securities and
28        Exchange  Commission  or  similar  foreign   governmental
29        entity (English translation), if any.
30             (6)  A list of all states and countries in which the
31        seller  is  operating  as a money transmitter, seller, or
32        agent and whether the seller has been withdrawn, refused,
33        canceled, or suspended in  any  other  state,  with  full
34        details.
 
                            -15-     LRB093 02172 JLS 03494 b
 1             (7)  All   additional   information   the   Director
 2        considers  necessary  in  order to ensure compliance with
 3        this Act. The Director may, for good cause shown,  waive,
 4        in part, any of the requirements of this Section.
 5        (c)  A  licensee  shall  enter  into  a contract with its
 6    authorized seller detailing  the  nature  and  scope  of  the
 7    relationship  between the licensee and the authorized seller.
 8    The contract between a licensee and an authorized seller must
 9    require the authorized seller to operate in  full  compliance
10    with  the  laws  of  this State and of the United States. The
11    licensee shall provide the Director with the  sample  written
12    contract.
13        (d)  The  financial  responsibility of a licensee for the
14    actions of its authorized seller shall not exceed the  amount
15    of  funds  received by the authorized seller on behalf of its
16    licensee for transmission.
17        (e)  An authorized seller has an affirmative duty not  to
18    (1)   commit   fraud  or  misrepresentation  and  (2)  submit
19    fraudulent statements to the licensee.  A licensee shall,  as
20    soon  as  practical,  report to the Director and to any other
21    appropriate official of this State or of  the  United  States
22    when  it  has  probable cause to believe an authorized seller
23    has  violated  the  affirmative  duty  set  forth   in   this
24    subsection.
25        (f)  The  licensee shall require the authorized seller to
26    hold in trust for the licensee from the moment of receipt the
27    proceeds of any business transacted  under  this  Act  in  an
28    amount  equal to the amount of proceeds due the licensee less
29    the amount due the authorized seller.  The funds shall remain
30    the property of the licensee whether or not commingled by the
31    authorized seller with its own funds.  In the event that  the
32    license is revoked by the Director, all proceeds then held in
33    trust  by authorized sellers of that licensee shall be deemed
34    to have been assigned to  the  Director.   If  an  authorized
 
                            -16-     LRB093 02172 JLS 03494 b
 1    seller  fails  to  remit  funds to the licensee in accordance
 2    with the time specified in its contract  with  the  licensee,
 3    the  licensee may bring a civil action against the authorized
 4    seller for 3 times the actual  damages.    The  Director  may
 5    provide  by  rule  a  maximum  remittance time for authorized
 6    sellers.
 7        (g)  A licensee shall, upon discovery, immediately report
 8    to  the  Director,  and  an  authorized  seller,  shall  upon
 9    discovery, immediately report to its licensee, the  theft  or
10    loss   of   any  payment  instrument  from  the  licensee  or
11    authorized seller in Illinois, having a value  in  excess  of
12    $100 or an aggregate value of $1,000 in any 3 month period.
13        (h)  Upon  suspension  or  revocation  of  a license, the
14    failure of a licensee to renew its license, or the denial  of
15    the  renewal  of  a  license,  the licensee shall notify  its
16    authorized sellers of the Director's action and require  them
17    to immediately cease operation as its authorized sellers.
18        (i)  A licensee shall report the removal of an authorized
19    seller  location  or  the  termination  of  operations  of an
20    authorized seller location to the  Director  on  a  quarterly
21    basis.
22        (j)  No  authorized seller shall act outside its scope of
23    authority as defined by this Act and by its contract with the
24    licensee with regard to any  transaction  regulated  by  this
25    Act.
26        (k)  An  authorized  seller  shall pay to the Director an
27    annual registration fee of $300 for its  first  location  and
28    $15  for  each  additional location conducting business as an
29    authorized seller.
30    (Source: P.A. 88-643, eff. 1-1-95.)

31        (205 ILCS 657/90)
32        Sec. 90.  Enforcement.
33        (a)  If it appears to the  Director  that  a  person  has
 
                            -17-     LRB093 02172 JLS 03494 b
 1    committed  or  is  about to commit a violation of this Act, a
 2    rule promulgated under this Act, or an order of the Director,
 3    the Director may apply to the  circuit  court  for  an  order
 4    enjoining  the person from violating or continuing to violate
 5    this Act, the rule, or order  and  for  injunctive  or  other
 6    relief  that  the  nature of the case may require and may, in
 7    addition, request the court to assess a civil penalty  up  to
 8    $10,000 $1,000 along with costs and attorney fees.
 9        (b)  If  the  Director finds, after an investigation that
10    he considers appropriate, that a licensee or other person  is
11    engaged  in  practices  contrary  to this Act or to the rules
12    promulgated under this Act, the Director may issue  an  order
13    directing  the  licensee  or  person  to cease and desist the
14    violation.  The Director may, in addition to or  without  the
15    issuance   of   a   cease   and   desist   order,  assess  an
16    administrative  penalty  up  to  $10,000  $1,000  against   a
17    licensee  or authorized seller for each violation of this Act
18    or the rules promulgated under this Act. The issuance  of  an
19    order  under  this Section shall not be a prerequisite to the
20    taking of any action by the Director under this or any  other
21    Section  of this Act.  The Director shall serve notice of his
22    action, including a statement of the reasons for his actions,
23    either  personally  or  by  certified  mail,  return  receipt
24    requested.  Service by mail shall be deemed completed if  the
25    notice  is  deposited  in  the  post  office,  postage  paid,
26    addressed to the last known address for a license.
27        (c)  In  the  case  of the issuance of a cease and desist
28    order or assessment order, a  hearing  may  be  requested  in
29    writing  within  30  days  after  the  date  of service.  The
30    hearing shall be held at the time and place designated by the
31    Director in either the City of Springfield  or  the  City  of
32    Chicago.   The  Director  and  any  administrative  law judge
33    designated by him shall have the power  to  administer  oaths
34    and   affirmations,   subpoena  witnesses  and  compel  their
 
                            -18-     LRB093 02172 JLS 03494 b
 1    attendance,  take   evidence,   authorize   the   taking   of
 2    depositions,  and  require  the  production of books, papers,
 3    correspondence, and other  records  or  information  that  he
 4    considers relevant or material to the inquiry.
 5        (d)  After  the  Director's  final  determination under a
 6    hearing under this Section, a party to the proceedings  whose
 7    interests  are affected by the Director's final determination
 8    shall  be  entitled  to  judicial  review   of   that   final
 9    determination under the Administrative Review Law.
10        (e)  The  costs  for administrative hearings shall be set
11    by rule.
12        (f)  Except  as  otherwise  provided  in  this   Act,   a
13    violation of this Act shall subject to the party violating it
14    to a fine of up to $10,000 $1,000 for each offense.
15        (g)  Each  transaction  in  violation  of this Act or the
16    rules  promulgated  under  this  Act  and  each  day  that  a
17    violation continues shall be a separate offense.
18        (h)  A person who engages in conduct requiring a  license
19    under  this  Act  and  fails  to  obtain  a  license from the
20    Director   or   knowingly   makes    a    false    statement,
21    misrepresentation,  or false certification in an application,
22    financial  statement,  account  record,  report,   or   other
23    document  filed  or  required to be maintained or filed under
24    this Act or who knowingly makes a  false  entry  or  omits  a
25    material entry in a document is guilty of a Class 3 felony.
26        (i)  The  Director  is  authorized to compromise, settle,
27    and collect civil penalties and administrative penalties,  as
28    set by rule, with any person for violations of this Act or of
29    any  rule  or order issued or promulgated under this Act. Any
30    person who, without the required license, engages in  conduct
31    requiring  a  license  under  this Act shall be liable to any
32    party injured by that conduct  in  an  amount  equal  to  the
33    amount  of  money  accepted  for  transmission plus an amount
34    equal to 3 times the amount accepted for transmission.
 
                            -19-     LRB093 02172 JLS 03494 b
 1        (j)  The Director may enter into consent  orders  at  any
 2    time  with  a  person  to resolve a matter arising under this
 3    Act.  A consent order must be signed by the person to whom it
 4    is issued and must indicate agreement to the terms  contained
 5    in it.  A consent order need not constitute an admission by a
 6    person that this Act or a rule or order issued or promulgated
 7    under  this  Act  has been violated, nor need it constitute a
 8    finding by the Director that the person has violated this Act
 9    or a rule or order promulgated under this Act.
10        (k)  Notwithstanding the issuance of a consent order, the
11    Director may seek civil or criminal penalties  or  compromise
12    civil  penalties concerning matter encompassed by the consent
13    order  unless  the  consent  order  by  its  terms  expressly
14    precludes the Director from doing so.
15        (l)  Appeals from all final orders and judgments  entered
16    by  the  circuit  court  under  this  Section  in review of a
17    decision of the Director may  be  taken  as  in  other  civil
18    actions by any party to the proceeding.
19    (Source: P.A. 88-643, eff. 1-1-95; 89-601, eff. 8-2-96.)

20        (205 ILCS 657/93 new)
21        Sec. 93.  Consumer Protection Fund.
22        (a)  A  licensee under this Act shall pay to the Director
23    $0.01 for each money transmission made, to  be  paid  into  a
24    special  income-earning  fund  hereby  created  in  the State
25    treasury, known as the TOMA Consumer  Protection  Fund.   The
26    fees  shall  be remitted to the Director on a quarterly basis
27    within 30 days after the end of March, June,  September,  and
28    December   for   all  money  transmissions  made  during  the
29    preceding quarter.
30        (b)  All moneys paid into  the  fund  together  with  all
31    accumulated  undistributed  income thereon shall be held as a
32    special fund in the State treasury.  The fund shall  be  used
33    solely  for the purpose of providing restitution to consumers
 
                            -20-     LRB093 02172 JLS 03494 b
 1    who have suffered monetary loss arising out of a  transaction
 2    regulated by this Act.
 3        (c)  The  fund  shall be applied only to restitution when
 4    restitution has been ordered  by  the  Director.  Restitution
 5    shall  not  exceed  the amount actually lost by the consumer,
 6    unless the Director determines that the consumer is  entitled
 7    to  the  additional treble damages provided in subsection (i)
 8    of Section 90 of this Act.  The fund shall not  be  used  for
 9    the payment of any attorney or other fees.
10        (d)  Whenever  restitution  is paid by the fund, the fund
11    shall first be reimbursed from any bond required by this Act.
12    Thereafter, the fund shall be subrogated to the amount of the
13    restitution, and the  Director  shall  request  the  Attorney
14    General  to  engage  in  all  reasonable  collection steps to
15    collect restitution from the party responsible for  the  loss
16    and reimburse the fund.
17        (e)  Notwithstanding   any   other   provisions  of  this
18    Section, the payment of restitution from the fund shall be  a
19    matter  of grace and not of right, and no consumer shall have
20    any vested rights in the fund as a beneficiary or  otherwise.
21    Before  seeking  restitution  from  the fund, the consumer or
22    beneficiary seeking payment of restitution  shall  apply  for
23    restitution  on  a  form  provided by the Director.  The form
24    shall include any information  the  Director  may  reasonably
25    require   in   order   to   determine   that  restitution  is
26    appropriate.
27        (f)  The Director shall from  time  to  time  review  the
28    status  of  the fund and based upon that review may, by rule,
29    adjust the amount paid into the fund pursuant to this Section
30    to the extent the Director deems  necessary  and  appropriate
31    for the continued solvency of the fund.

32        Section  95.   The State Finance Act is amended by adding
33    Section 5.595 as follows:
 
                            -21-     LRB093 02172 JLS 03494 b
 1        (30 ILCS 105/5.595 new)
 2        Sec. 5.595.  The TOMA Consumer Protection Fund.

 3        Section 99.  Effective date.  This Act  takes  effect  on
 4    July 1, 2003.