Illinois General Assembly - Full Text of HB2432
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Full Text of HB2432  98th General Assembly

HB2432ham001 98TH GENERAL ASSEMBLY

Rep. Elizabeth Hernandez

Filed: 3/19/2013

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 2432

2    AMENDMENT NO. ______. Amend House Bill 2432 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Electronic Fund Transfer Act is amended by
5changing Section 10 and by adding Section 46 as follows:
 
6    (205 ILCS 616/10)
7    Sec. 10. Definitions. For purposes of this Act, the words
8and phrases defined in this Section shall have the meanings
9ascribed to them unless the context requires otherwise.
10Whenever the terms "network" and "switch" are used, they shall
11be deemed interchangeable unless, from the context and facts,
12the intention is plain to apply only to one type of entity.
13    "Access device" means a card, code, or other means of
14access to an account, or any combination thereof, that may be
15used by a customer to initiate an electronic fund transfer at a
16terminal.

 

 

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1    "Account" means a demand deposit, savings deposit, share,
2member, or other customer asset account held by a financial
3institution.
4    An "affiliate" of, or a person "affiliated" with, a
5specified person, means a person that directly, or indirectly
6through one or more intermediaries, controls, is controlled by,
7or is under common control with, the person specified.
8    "Commissioner" means the Secretary of Financial and
9Professional Regulation or a person authorized by the
10Secretary, the Division of Banking Act, or this Act to act in
11the Secretary's stead.
12    "Division" means the Division of Banking within the
13Department of Financial and Professional Regulation.
14    "Electronic fund transfer" means a transfer of funds, other
15than a transaction originated by check, draft, or similar paper
16instrument, that is initiated through a terminal for the
17purpose of ordering, instructing, or authorizing a financial
18institution to debit or credit an account.
19    "Financial institution" means a bank established under the
20laws of this or any other state or established under the laws
21of the United States, a savings and loan association or savings
22bank established under the laws of this or any other state or
23established under the laws of the United States, a credit union
24established under the laws of this or any other state or
25established under the laws of the United States, or a licensee
26under the Consumer Installment Loan Act or the Sales Finance

 

 

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1Agency Act.
2    "General use reloadable card" means a card, code, or other
3access device that is:
4        (1) issued on a prepaid basis primarily for personal,
5    family, or household purposes to a consumer in a specified
6    amount in exchange for payment;
7        (2) issued under an agreement containing terms and
8    conditions that permit funds to be added to the card, code,
9    or other device after the initial purchase or issuance,
10    including a temporary non-reloadable card issued solely in
11    connection with a general use reloadable card, code, or
12    other device;
13        (3) not marketed or labeled as a gift card or gift
14    certificate; and
15        (4) redeemable upon presentation at multiple,
16    unaffiliated merchants for goods or services or usable at
17    automated teller machines.
18    "Interchange transaction" means an electronic fund
19transfer that results in exchange of data and settlement of
20funds between 2 or more unaffiliated financial institutions.
21    "Issuer" means a person that issues a general use
22reloadable card or that person's agent with respect to the
23card.
24    "Marketed or labeled as a gift card or gift certificate"
25means directly or indirectly offering, advertising, or
26otherwise suggesting the potential use of a card, code, or

 

 

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1other device as a gift for another person.
2    "Network" means an electronic information communication
3and processing system that processes interchange transactions.
4    "Person" means a natural person, corporation, unit of
5government or governmental subdivision or agency, trust,
6estate, partnership, cooperative, or association.
7    "Seller of goods and services" means a business entity
8other than a financial institution.
9    "Switch" means an electronic information and communication
10processing facility that processes interchange transactions on
11behalf of a network. This term does not include an electronic
12information and communication processing company (1) that is
13owned by a bank holding company or an affiliate of a bank
14holding company and used solely for transmissions among
15affiliates of the bank holding company or (2) to the extent
16that the facility, by virtue of a contractual relationship, is
17used solely for transmissions among affiliates of a bank
18holding company, regardless of whether the facility is an
19affiliate of the bank holding company or operates as a switch
20with respect to one or more networks under an independent
21contractual relationship.
22    "Terminal" means an electronic device through which a
23consumer may initiate an interchange transaction. This term
24does not include (1) a telephone, (2) an electronic device
25located in a personal residence, (3) a personal computer or
26other electronic device used primarily for personal, family, or

 

 

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1household purposes, (4) an electronic device owned or operated
2by a seller of goods and services unless the device is
3connected either directly or indirectly to a financial
4institution and is operated in a manner that provides access to
5an account by means of a personal and confidential code or
6other security mechanism (other than signature), (5) an
7electronic device that is not accessible to persons other than
8employees of a financial institution or affiliate of a
9financial institution, or (6) an electronic device that is
10established by a financial institution on a proprietary basis
11that is identified as such and that cannot be accessed by
12customers of other financial institutions. The Commissioner
13may issue a written rule that excludes additional electronic
14devices from the definition of the term "terminal".
15(Source: P.A. 96-1365, eff. 7-28-10.)
 
16    (205 ILCS 616/46 new)
17    Sec. 46. Disclosure requirements for general use
18reloadable cards.
19    (a) The form of the disclosures made under this Section
20shall adhere to the following standards:
21        (1) The disclosures shall be clear and conspicuous. The
22    disclosures may contain commonly accepted or readily
23    understandable abbreviations or symbols.
24        (2) The disclosures generally shall be provided to the
25    consumer in written or electronic form, except that the

 

 

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1    disclosures required to be made prior to purchase may be
2    provided orally.
3        (3) The disclosures may be made on or with other
4    documents. For joint accounts, only one set of the required
5    disclosures shall be provided and may be given to any of
6    the account holders.
7        (4) Issuers may design their own disclosure format,
8    provided that all fees required to be disclosed under
9    subsection (b) are included and the substance and clarity
10    of the disclosures are not affected.
11    (b) The following disclosures are required:
12        (1) Before a general use reloadable card is purchased,
13    a person that issues the card shall disclose to the
14    consumer the amount of any dormancy, inactivity, or
15    periodic service fee for holding or use of the card that
16    may be charged and how often the fee or fees may be
17    assessed. The disclosures may be displayed on the card
18    packaging or carrier containing the general use reloadable
19    card.
20        (2) A person that issues a general use reloadable card
21    shall include the following disclosures on the card:
22            (A) the expiration date of the card, if any; and
23            (B) a toll-free telephone number and, if one is
24        maintained, a website that a consumer may use to obtain
25        information about fees and to obtain a replacement card
26        after the card expires if the underlying funds may be

 

 

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1        available thereafter.
2        (3) A person that issues a general use reloadable card
3    shall disclose the amount of each type of fee that may be
4    imposed in connection with the card (or an explanation of
5    how the fee shall be determined), and the conditions under
6    which the fee may be imposed.
7    (c) A card, code, or other access device is not a general
8use reloadable card merely because the issuer or processor is
9technically able to add functionality that would otherwise
10enable the card, code, or other access device to be reloaded.
11    (d) Compliance with the federal Electronic Fund Transfer
12Act and any regulations issued under that Act regarding general
13use reloadable card disclosures shall constitute compliance
14with this Section.
15    (e) The requirements of this Section shall apply to any
16general use reloadable card sold to a consumer on or after
17January 1, 2015.
 
18    Section 99. Effective date. This Act takes effect January
191, 2014.".