Illinois General Assembly - Full Text of SB3752
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Full Text of SB3752  97th General Assembly


Sen. Emil Jones, III

Filed: 3/1/2012





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2    AMENDMENT NO. ______. Amend Senate Bill 3752 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Check Cashing Act is amended by adding
5Sections 5, 10, 15, 20, 25, 30, 35, 40, 45, 50, 55, 60, 65, 70,
675, and 80 as follows:
7    (815 ILCS 315/5 new)
8    Sec. 5. Purpose. The purpose of this Act is to protect
9consumers who cash checks at retail businesses that provide
10check cashing services. This Act shall be construed as a
11consumer protection law for all purposes. This Act shall be
12liberally construed to effectuate its purpose.
13    (815 ILCS 315/10 new)
14    Sec. 10. Definitions. As used in this Act:
15    "Cash" means legal tender of the United States.



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1    "Check" means a check, draft, money order, traveler's
2check, or negotiable instrument as defined by Article 3 of the
3Uniform Commercial Code.
4    "Check casher" means a merchant, including any affiliate or
5subsidiary of a merchant that engages in the check cashing
7    "Check cashing business" means the business of converting
8checks, drafts, money orders, traveler's checks, or other
9payment instruments to cash for a fee. "Check cashing business"
10does not include any transaction in which a customer presents a
11check for the exact amount of any purchase.
12    "Consumer" means any natural person who, individually or
13jointly with another consumer, cashes a check.
14    "Department" means the Department of Financial and
15Professional Regulation.
16    "Incidental" means that in the course of a merchant's
17business, at each location, the merchant's check fee income is
18less than 20% of gross sales.
19    "Location" means a place of business at which activity
20regulated by this Act occurs.
21    "Person" means an individual, partnership, limited
22liability company, unincorporated association, corporation, or
23other legal entity.
24    "Merchant" means a person, firm, association, partnership,
25or corporation primarily engaged in the business of selling
26tangible personal property at retail.



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1    "Secretary" means the Secretary of Financial and
2Professional Regulation.
3    (815 ILCS 315/15 new)
4    Sec. 15. Engaging in the check cashing business. A merchant
5may engage in the check cashing business only if it is
6incidental to the business of selling tangible personal
7property at retail. However, "check cashing business" does not
8include any transaction in which a customer presents a check
9for the exact amount of any purchase. The fees charged for
10cashing a check shall not exceed the greater of $0.50 or 1% of
11the face value of the check cashed. No license shall be
12required as a condition for providing such services. This Act
13does not affect the applicability of Sections 2 and 29 of the
14Currency Exchange Act to any activity of a merchant that is not
15expressly authorized by this Act.
16    (815 ILCS 315/20 new)
17    Sec. 20. Applicability.
18    (a) Except as otherwise provided in this Section, this Act
19applies to any check casher that engages or offers to engage in
20the check cashing business for a fee to Illinois consumers.
21Anyone not a check casher, except as provided in this Section,
22may not cash checks for a fee.
23    (b) The provisions of this Act apply to any person or
24entity that seeks to evade its applicability by any device,



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1subterfuge, or pretense whatsoever.
2    (c) This Act does not apply to any bank holding company,
3financial holding company, bank, savings bank, savings and loan
4association, credit union, or trust company, or any subsidiary
5or affiliate thereof, that is authorized to do business under
6the laws of this State or of the United States.
7    (d) A check casher that is an agent for a bank, savings
8bank, savings and loan association, or credit union shall be
9subject to all of the provisions of this Act.
10    (e) Currency exchanges licensed pursuant to the Currency
11Exchange Act and in compliance with all relevant State and
12federal rules and regulations are exempt from the provisions of
13this Act.
14    (815 ILCS 315/25 new)
15    Sec. 25. Money received by the Department. All moneys
16received by the Department under this Act shall be deposited in
17the Financial Institutions Fund created under Section 6z-26 of
18the State Finance Act.
19    (815 ILCS 315/30 new)
20    Sec. 30. Permitted fees.
21    (a) The fees charged by a check casher may not exceed the
22greater of $0.50 or 1% of the face value of the check cashed.
23No check casher shall charge or collect any sum for cashing a
24check in excess of the fees allowed by this Act. If there are



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1insufficient funds to cover a check, a check casher may charge
2a fee not to exceed $25. Only one such fee may be collected by
3the check casher per check.
4    (b) The schedule of fees and charges permitted under this
5Section shall be conspicuously and continuously posted in at
6least 14-point font in English and the dominant languages
7spoken in each check casher's location.
8    (815 ILCS 315/35 new)
9    Sec. 35. Proceeds. A check casher shall issue the proceeds
10of a check to a consumer in cash or cash equivalent. No check
11casher shall issue proceeds of a check in an amount other than
12the face value of the check, except for the deduction of check
13cashing fees charged pursuant to this Act.
14    (815 ILCS 315/40 new)
15    Sec. 40. Deposits. Before a check casher deposits, with any
16banking or other financial institution, a check cashed by the
17check casher, the check must be endorsed with the name under
18which the check casher is doing business.
19    (815 ILCS 315/45 new)
20    Sec. 45. Reporting requirements. A check casher shall
21submit to the Secretary, or the Secretary's designee, any
22suspicious activity reports or currency transaction reports as
23are required to be submitted to federal authorities pursuant to



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1the federal Bank Secrecy Act, and regulations and
2administrative orders related thereto, as amended, within the
3periods of time as required by the federal Bank Secrecy Act and
4regulations. A check casher may submit a copy of any report to
5the Secretary, or Secretary's designee, that is filed with that
6federal authority. The Secretary may adopt rules or require
7additional reports as he or she deems necessary to ensure
8effective enforcement of this Section.
9    (815 ILCS 315/50 new)
10    Sec. 50. Forged checks. A check casher shall post in a
11conspicuous location, clearly visible to all patrons, a
12statement printed in at least 14-point font in plain language,
13in English and in the dominant languages spoken in each check
14casher's location, informing the public that cashing a forged
15check is illegal and those who knowingly cash forged checks
16will be prosecuted pursuant to the applicable provisions of the
17Criminal Code of 1961.
18    (815 ILCS 315/55 new)
19    Sec. 55. Examination of check cashers; records.
20    (a) A check casher shall keep and use books, accounts, and
21records that will enable the Secretary to determine whether the
22check casher is complying with the provisions of this Act and
23maintain any other records as required by the Secretary. Check
24cashers shall preserve their books, accounts, and records for 5



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1years from the date of each transaction.
2    (b) For the purpose of discovering violations of this Act
3or securing information lawfully required in this Section, the
4Department may at any time, and as often as may be determined,
5investigate the check casher's books, accounts, records,
6files, and any other document related to the check casher's
7check cashing business activities. The Secretary and his or her
8designee shall have free access to the offices and places of
9business, books, accounts, papers, records, files, safes, and
10vaults of all check cashers.
11    (c) Confidentiality. All information collected by the
12Department in the course of an examination or investigation of
13a check casher including, but not limited to, any complaint
14against a check casher filed with the Department and
15information collected to investigate any such complaint, shall
16be maintained for the confidential use of the Department and
17may not be disclosed. The Department may not disclose such
18information to anyone other than law enforcement officials,
19other regulatory agencies that have an appropriate regulatory
20interest as determined by the Secretary, or a party presenting
21a lawful subpoena to the Department. Information disclosed to a
22federal, State, county, or local law enforcement agency may not
23be disclosed by the agency for any purpose to any other agency
24or person. A formal complaint filed against a check casher by
25the Department or any order issued by the Department against a
26check casher shall be a public record, except as otherwise



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1prohibited by law.
2    (815 ILCS 315/60 new)
3    Sec. 60. Prohibited acts. A check casher may not commit, or
4have committed on behalf of the check casher, any of the
5following acts:
6    (1) Using any device or agreement that would have the
7effect of charging or collecting more fees or charges than
8allowed by this Act, including, but not limited to, entering
9into a different type of transaction with the consumer.
10    (2) Engaging in unfair, deceptive, or fraudulent practices
11in the cashing of a check.
12    (3) Using or causing to be published or disseminated any
13advertising communication that contains false, misleading, or
14deceptive statements or representations. No check casher may
15advertise in any manner so as to indicate or imply that its
16rates or charges are in any way recommended, approved, set, or
17established by the State government or by this Act.
18    (4) Engaging in the business of making loans of money,
19discounting notes, bills of exchange, or other evidences of
20debt, or accepting deposits or bailments of money or other
21items except as provided by this Act.
22    (5) Extending credit.
23    (6) Using or attempting to use the check provided by the
24consumer as collateral for a transaction unrelated to a
25transaction authorized by this Act.



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1    (7) Charging any fees or charges other than those
2specifically authorized by this Act or under the Uniform
3Commercial Code.
4    (8) Threatening to take any action against a consumer that
5is prohibited by this Act.
6    (815 ILCS 315/65 new)
7    Sec. 65. Enforcement and remedies.
8    (a) The remedies provided in this Act are cumulative and
9apply to persons or entities subject to this Act.
10    (b) Any material violation of this Act, including the
11commission of an act prohibited under Section 60, constitutes a
12violation of the Consumer Fraud and Deceptive Business
13Practices Act.
14    (c) Subject to the Illinois Administrative Procedure Act,
15the Secretary may hold hearings, make findings of fact and
16conclusions of law, issue cease and desist orders, issue fines
17of up to $10,000 per violation, and refer the matter to the
18appropriate law enforcement agency for prosecution under this
19Act. All proceedings shall be open to the public.
20    (d) The Secretary may issue a cease and desist order to any
21check casher when in the opinion of the Secretary the check
22casher is violating or is about to violate any provision of
23this Act or any rule or requirement imposed in writing by the
24Department as a condition of granting any authorization
25permitted by this Act. The cease and desist order permitted by



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1this subsection (d) is effective as of the date of service and
2may be issued prior to a hearing. The Secretary shall serve
3notice of his or her action, including, but not limited to, a
4statement of the reasons for the action, either personally or
5by certified mail, return receipt requested. Service by
6certified mail shall be deemed completed when the notice is
7deposited in the U.S. Mail. Within 10 days of service of the
8cease and desist order, the check casher may request, in
9writing, a hearing.
10    If it is determined that the Secretary had the authority to
11issue the cease and desist order, he or she may issue such
12orders as may be reasonably necessary to correct, eliminate, or
13remedy the conduct. The powers vested in the Secretary by this
14subsection (d) are in addition to any and all other powers and
15remedies vested in the Secretary by law, and nothing in this
16subsection (d) shall be construed as requiring that the
17Secretary shall employ the power conferred in this subsection
18instead of or as a condition precedent to the exercise of any
19other power or remedy vested in the Secretary.
20    (e) The Secretary may, after 10 days' notice by registered
21mail to the check casher at the check casher's business address
22stating the contemplated action and in general the grounds
23therefor, fine the check casher an amount not exceeding $10,000
24per violation if he or she finds that the check casher has
25failed to comply with any provision of this Act or any order,
26decision, finding, rule, regulation, or direction of the



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1Secretary lawfully made pursuant to the authority of this Act.
2    The Secretary may fine only the particular location with
3respect to which grounds for the fine occur or exist, but if
4the Secretary finds that grounds for the fine are of general
5application to all locations or to more than one location of
6the check casher, the Secretary may fine every check casher's
7location to which the grounds apply.
8    An order assessing a fine shall take effect upon service of
9the order unless the check casher requests a hearing within 10
10days of service of the order pursuant to this Section. In the
11event a hearing is requested, the order shall be stayed until a
12final administrative order is entered.
13    The hearing shall be held at the time and place designated
14by the Secretary. The Secretary and any administrative law
15judge designated by him or her shall have the power to
16administer oaths and affirmations, subpoena witnesses and
17compel their attendance, take evidence, and require the
18production of books, papers, correspondence, and other records
19or information that he or she considers relevant or material to
20the inquiry.
21    (f) The costs of administrative hearings conducted
22pursuant to this Section shall be paid by the check casher.
23    (815 ILCS 315/70 new)
24    Sec. 70. Rulemaking. The Department may make and enforce
25such reasonable rules, regulations, directions, orders,



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1decisions, and findings as the execution and enforcement of the
2provisions of this Act require, and as are not inconsistent
3therewith. All rules, regulations, and directions of a general
4character shall be made available to all check cashers in
5electronic form.
6    (815 ILCS 315/75 new)
7    Sec. 75. Judicial review. All final administrative
8decisions of the Department under this Act are subject to
9judicial review pursuant to the provisions of the
10Administrative Review Law and any rules adopted pursuant
12    (815 ILCS 315/80 new)
13    Sec. 80. No waivers. There shall be no waiver of any
14provision of this Act.
15    (815 ILCS 315/1 rep.)
16    (815 ILCS 315/2 rep.)
17    Section 900. The Check Cashing Act is amended by repealing
18Sections 1 and 2.
19    Section 910. The Consumer Fraud and Deceptive Business
20Practices Act is amended by changing Section 2Z as follows:
21    (815 ILCS 505/2Z)  (from Ch. 121 1/2, par. 262Z)



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1    Sec. 2Z. Violations of other Acts. Any person who knowingly
2violates the Automotive Repair Act, the Automotive Collision
3Repair Act, the Home Repair and Remodeling Act, the Dance
4Studio Act, the Physical Fitness Services Act, the Hearing
5Instrument Consumer Protection Act, the Illinois Union Label
6Act, the Job Referral and Job Listing Services Consumer
7Protection Act, the Travel Promotion Consumer Protection Act,
8the Credit Services Organizations Act, the Automatic Telephone
9Dialers Act, the Pay-Per-Call Services Consumer Protection
10Act, the Telephone Solicitations Act, the Illinois Funeral or
11Burial Funds Act, the Cemetery Oversight Act, the Cemetery Care
12Act, the Safe and Hygienic Bed Act, the Pre-Need Cemetery Sales
13Act, the High Risk Home Loan Act, the Payday Loan Reform Act,
14the Mortgage Rescue Fraud Act, subsection (a) or (b) of Section
153-10 of the Cigarette Tax Act, subsection (a) or (b) of Section
163-10 of the Cigarette Use Tax Act, the Electronic Mail Act, the
17Internet Caller Identification Act, paragraph (6) of
18subsection (k) of Section 6-305 of the Illinois Vehicle Code,
19Section 11-1431, 18d-115, 18d-120, 18d-125, 18d-135, 18d-150,
20or 18d-153 of the Illinois Vehicle Code, Article 3 of the
21Residential Real Property Disclosure Act, the Automatic
22Contract Renewal Act, the Check Cashing Act, or the Personal
23Information Protection Act commits an unlawful practice within
24the meaning of this Act.
25(Source: P.A. 96-863, eff. 1-19-10; 96-1369, eff. 1-1-11;
2696-1376, eff. 7-29-10; 97-333, eff. 8-12-11.)



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1    Section 996. Severability. The provisions of this Act are
2severable under Section 1.31 of the Statute on Statutes.
3    Section 999. Effective date. This Act takes effect 180 days
4after becoming law.".