Full Text of HB2780 98th General Assembly
HB2780sam001 98TH GENERAL ASSEMBLY | Sen. Don Harmon Filed: 5/14/2013
| | 09800HB2780sam001 | | LRB098 09711 JLS 45641 a |
|
| 1 | | AMENDMENT TO HOUSE BILL 2780
| 2 | | AMENDMENT NO. ______. Amend House Bill 2780 on page 1 by | 3 | | inserting immediately below line 3 the following:
| 4 | | "Section 3. The Currency Exchange Act is amended by | 5 | | changing Sections 3, 5, 9, 10, 11, and 18 as follows:
| 6 | | (205 ILCS 405/3) (from Ch. 17, par. 4804)
| 7 | | Sec. 3. Powers of community currency exchanges. No | 8 | | community or
ambulatory currency exchange shall be
permitted to | 9 | | accept money or evidences of money as a deposit to be
returned | 10 | | to the depositor or upon the depositor's order. No
community or | 11 | | ambulatory currency exchange shall be permitted to act as
| 12 | | bailee or agent for persons, firms, partnerships, limited | 13 | | liability
companies, associations or
corporations to hold | 14 | | money or evidences thereof or the proceeds
therefrom for the | 15 | | use and benefit of the owners thereof, and deliver
such money | 16 | | or proceeds of evidence of money upon request and direction
of |
| | | 09800HB2780sam001 | - 2 - | LRB098 09711 JLS 45641 a |
|
| 1 | | such owner or owners. Nothing in this Act shall prevent a | 2 | | currency exchange from accepting any check without regard to | 3 | | the date imprinted on the check as long as the check is | 4 | | immediately cashed, deposited, and processed in the ordinary | 5 | | course of business. A community or ambulatory currency exchange | 6 | | is permitted to engage in, and charge a fee for, the following | 7 | | activities, either directly or as a third-party agent: (i) | 8 | | cashing of checks, drafts, money orders, or any other evidences | 9 | | of money acceptable to the currency exchange, (ii) selling or | 10 | | issuing money orders, (iii) obtaining reports, certificates, | 11 | | governmental permits, licenses, and vital statistics and the | 12 | | preparation of necessary applications to obtain the same, (iv) | 13 | | the sale and distribution of bond cards, (v) obtaining, | 14 | | distributing, providing, or selling: State vehicle | 15 | | registration renewals, title transfers and tax remittance | 16 | | forms, city vehicle licenses, and other governmental services, | 17 | | (vi) photocopying and sending and receiving facsimile | 18 | | transmissions, (vii) notary service either by the proprietor of | 19 | | the currency exchange or any currency exchange employee, | 20 | | authorized by the State to act as a notary public, (viii) | 21 | | issuance of travelers checks obtained by the currency exchange | 22 | | from a banking institution under a trust receipt, (ix) | 23 | | accepting for payment utility and other companies' bills, (x) | 24 | | issuance and acceptance of any third-party debit, credit, or | 25 | | stored value card and loading or unloading, (xi) on-premises | 26 | | automated cash dispensing machines, (xii) sale of rolled coin |
| | | 09800HB2780sam001 | - 3 - | LRB098 09711 JLS 45641 a |
|
| 1 | | and paper money, (xiii) exchange of foreign currency through a | 2 | | third-party, (xiv) sale of cards, passes, or tokens for public | 3 | | transit, (xv) providing mail box service, (xvi) preparation and | 4 | | transmittal of consumer requests and applications for the sale | 5 | | of prepaid wireless phones, phone cards , and other pre-paid | 6 | | telecommunication services, (xvii) on-premises public | 7 | | telephone, (xviii) sale of U.S. postage, (xix) money | 8 | | transmission through a licensed third-party money transmitter, | 9 | | (xx) sale of candy, gum, other packaged foods, soft drinks, and | 10 | | other products and services by means of on-premises vending | 11 | | machines, and (xxi) preparation and transmittal of consumer | 12 | | requests and applications for the delivery, supply, or service | 13 | | of any utility product, service, or company lawfully offered in | 14 | | the State of Illinois, (xxii) advertising upon and about the | 15 | | premises and distribution to consumers of advertising and other | 16 | | materials of any legal product or service that is not | 17 | | misleading to the public, and (xxiii) other products and | 18 | | services as may be approved by the Secretary.
Any community or | 19 | | ambulatory currency exchange may enter into
agreements with any | 20 | | utility and other companies to act as the companies'
agent for | 21 | | the acceptance of payment of utility and other
companies' bills | 22 | | without charge
to the customer and,
acting under such | 23 | | agreement, may receipt for payments in the
names of the utility | 24 | | and other companies. Any community or
ambulatory currency | 25 | | exchange may also receive payment of
utility and other | 26 | | companies' bills for remittance to companies
with which it has |
| | | 09800HB2780sam001 | - 4 - | LRB098 09711 JLS 45641 a |
|
| 1 | | no such agency agreement and may charge a fee
for such service | 2 | | but may not, in such cases, issue a receipt for such
payment in | 3 | | the names of the utility and other companies.
However, funds | 4 | | received by currency exchanges for remittance
to utility and | 5 | | other companies with which the currency exchange
has no agency | 6 | | agreement shall be forwarded to the appropriate
utility and | 7 | | other companies by the currency exchange before the
end of the | 8 | | next business day. | 9 | | For the purpose of this Section, "utility and other | 10 | | companies" means any utility company and other company with | 11 | | which the currency exchange may or may not have a contractual | 12 | | agreement and for which the currency exchange accepts payments | 13 | | from consumers for remittance to the utility or other company | 14 | | for the payment of bills.
| 15 | | (Source: P.A. 97-315, eff. 1-1-12.)
| 16 | | (205 ILCS 405/5) (from Ch. 17, par. 4812)
| 17 | | Sec. 5. Bond; condition; amount.
| 18 | | (a) Before any license shall be issued
to a community
| 19 | | currency exchange the applicant shall file annually with and
| 20 | | have approved by the Secretary a surety bond, issued by a | 21 | | bonding
company authorized to do business in this State in the | 22 | | principal sum
of $25,000. Such bond shall run to the Secretary | 23 | | and shall
be for the benefit of any creditors of such currency | 24 | | exchange
for any liability incurred by the currency exchange on | 25 | | any
money orders, including any fees and penalties incurred by |
| | | 09800HB2780sam001 | - 5 - | LRB098 09711 JLS 45641 a |
|
| 1 | | the remitter should the money order be returned unpaid, issued | 2 | | or sold by the currency exchange in the ordinary course of its | 3 | | business and for
any liability incurred by the currency | 4 | | exchange for any sum or
sums due to any payee or endorsee of | 5 | | any check, draft or money
order left with the currency exchange | 6 | | in the ordinary course of its business for collection, and for
| 7 | | any liability to the public incurred by the currency exchange | 8 | | in the ordinary course of its business in connection
with the | 9 | | rendering of any of the services referred to in
Section 3 of | 10 | | this Act.
| 11 | | To protect the public and allow for the effective | 12 | | underwriting of bonds, the surety bond shall not cover money | 13 | | orders issued and other liabilities incurred by a currency | 14 | | exchange for its own account or that of its controlling | 15 | | persons, including money orders issued or liabilities incurred | 16 | | by the currency exchange to obtain cash for its own operations, | 17 | | to pay for the currency exchange's own bills or liabilities or | 18 | | that of its controlling persons, or to obtain things of value | 19 | | for the currency exchange
or its controlling persons, | 20 | | regardless of whether such things of value are used in the | 21 | | currency exchange's operations or sold by the currency | 22 | | exchange. | 23 | | From time to time the Secretary may determine the amount of | 24 | | liabilities
as described herein and shall require the licensee | 25 | | to file a bond in an
additional sum if the same is determined | 26 | | to be necessary in accordance with
the requirements of this |
| | | 09800HB2780sam001 | - 6 - | LRB098 09711 JLS 45641 a |
|
| 1 | | Section. In no case shall the bond be less than
the initial | 2 | | $25,000, nor more than the outstanding liabilities.
| 3 | | (b) In lieu of the surety bond requirements of subsection | 4 | | (a), a community
currency exchange licensee may submit evidence | 5 | | satisfactory to the Secretary
that the community currency | 6 | | exchange licensee is covered by a blanket bond that
covers | 7 | | multiple licensees who are members of a statewide association | 8 | | of
community currency exchanges. Such a blanket bond must be | 9 | | issued by a bonding
company authorized to do business in this | 10 | | State and in a principal aggregate
sum of not less than | 11 | | $3,000,000 as of May 1, 2012, and not less than $4,000,000 as | 12 | | of May 1, 2014.
| 13 | | (c) An ambulatory currency exchange may sell or issue money | 14 | | orders
at any location with regard to which it
is issued a | 15 | | license pursuant to this Act, including existing
licensed | 16 | | locations, without the necessity of a further
application or | 17 | | hearing and without regard to any exceptions
contained in | 18 | | existing licenses, upon the filing with
the Secretary of a | 19 | | surety bond approved by the Secretary and issued by a bonding
| 20 | | company
or insurance company authorized to do business in | 21 | | Illinois,
in the principal sum of $100,000. Such bond may be a | 22 | | blanket
bond covering all locations at which the ambulatory | 23 | | currency
exchange may sell or issue money orders,
and shall run | 24 | | to the Secretary for the
use and benefit of any creditors of | 25 | | such ambulatory currency
exchange for any liability incurred by | 26 | | the ambulatory currency
exchange on any money orders issued or |
| | | 09800HB2780sam001 | - 7 - | LRB098 09711 JLS 45641 a |
|
| 1 | | sold by it to the public in the ordinary course of its | 2 | | business .
Such bond shall be renewed annually. If after
the | 3 | | expiration of one year from the date of approval of such
bond | 4 | | by the Secretary, it shall appear that the average amount
of | 5 | | such liability during the year has exceeded $100,000,
the | 6 | | Secretary shall require the licensee to furnish a bond for
the | 7 | | ensuing year, to be approved by the Secretary,
for an | 8 | | additional principal sum of $1,000 for each $1,000 of
such | 9 | | liability or fraction thereof in excess of the original
| 10 | | $100,000, except that the maximum amount of such bond shall not | 11 | | be required to
exceed $250,000.
| 12 | | (Source: P.A. 97-315, eff. 1-1-12.)
| 13 | | (205 ILCS 405/9) (from Ch. 17, par. 4816)
| 14 | | Sec. 9.
No community or ambulatory currency exchange shall | 15 | | issue
tokens to be used in lieu of money for the purchase of | 16 | | goods or services
from any enterprise , except that currency | 17 | | exchanges may engage in
the distribution of food stamps as | 18 | | authorized by Section 3.2 .
| 19 | | (Source: P.A. 80-439.)
| 20 | | (205 ILCS 405/10) (from Ch. 17, par. 4817)
| 21 | | Sec. 10. Qualifications of applicant; denial of license; | 22 | | review. The
applicant , and its controlling persons officers, | 23 | | directors and
stockholders, if a corporation,
and its managers | 24 | | and members, if a liability company, shall be vouched for
by 2 |
| | | 09800HB2780sam001 | - 8 - | LRB098 09711 JLS 45641 a |
|
| 1 | | reputable citizens of this State setting forth
that the | 2 | | individual mentioned is (a) personally known to them to be
| 3 | | trustworthy and reputable, (b) that he has business experience | 4 | | qualifying
him to competently conduct, operate, own or become | 5 | | associated with a
currency exchange, (c) that he has a good | 6 | | business reputation and is worthy
of a license. Thereafter, the | 7 | | Secretary shall, upon approval of the
application filed with | 8 | | him, issue to the applicant, qualifying under this
Act, a | 9 | | license to operate a currency exchange. If it is a license for | 10 | | a
community currency exchange, the same shall be valid only at | 11 | | the place of
business specified in the application. If it is a | 12 | | license for an ambulatory
currency exchange, it shall entitle | 13 | | the applicant to operate only at the
location or locations | 14 | | specified in the application, provided the applicant
shall | 15 | | secure separate and additional licenses for each of such | 16 | | locations.
Such licenses shall remain in full force and effect, | 17 | | until they are
surrendered by the licensee, or revoked, or | 18 | | expire, as herein provided. If
the Secretary shall not so | 19 | | approve, he shall not issue such license or
licenses and shall | 20 | | notify the applicant of such denial, retaining the full
| 21 | | investigation fee to cover the cost of investigating the | 22 | | community
currency exchange applicant. The
Secretary shall | 23 | | approve or deny every application hereunder within 90 days
from | 24 | | the filing of a complete application; except that in respect to | 25 | | an application by an
approved ambulatory currency exchange for | 26 | | a license with regard to a
particular location to be served by |
| | | 09800HB2780sam001 | - 9 - | LRB098 09711 JLS 45641 a |
|
| 1 | | it, the same shall be approved or
denied within 20 days from | 2 | | the filing thereof. If the application is
denied, the Secretary | 3 | | shall send by United States mail notice of such denial
to the | 4 | | applicant at the address set forth in the application.
| 5 | | If an application is denied, the applicant may, within 10 | 6 | | days from the
date of the notice of denial, make written | 7 | | request to the Secretary for a
hearing on the application, and | 8 | | the Secretary shall set a time and place for
the hearing. The | 9 | | hearing shall be set for a date after the receipt by the
| 10 | | Secretary of the request for hearing, and written notice of the | 11 | | time and
place of the hearing shall be mailed to the applicant | 12 | | at least 15 days
before the date of the hearing. The applicant | 13 | | shall pay the actual cost of
making the transcript of the | 14 | | hearing prior to the Secretary's issuing his
decision following | 15 | | the hearing. If, following the hearing, the application
is | 16 | | denied, the Secretary shall, within 20 days thereafter prepare | 17 | | and keep
on file in his office a written order of denial | 18 | | thereof, which shall
contain his findings with respect thereto | 19 | | and the reasons supporting the
denial, and shall send by United | 20 | | States Mail a copy thereof to the
applicant at the address set | 21 | | forth in the application, within 5 days after
the filing of | 22 | | such order. A review of any such decision may be had as
| 23 | | provided in Section 22.01 of this Act.
| 24 | | For the purposes of this Act, "controlling person" means an | 25 | | officer, director, or person owning or holding power to vote | 26 | | 10% or more of the outstanding voting securities of a licensee |
| | | 09800HB2780sam001 | - 10 - | LRB098 09711 JLS 45641 a |
|
| 1 | | or the power to vote the securities of another controlling | 2 | | person of the licensee. For purposes of
determining the | 3 | | percentage of a licensee controlled by a controlling person, | 4 | | the person's interest shall be combined with the interest of | 5 | | any other person controlled, directly or indirectly, by that | 6 | | person or by a spouse, parent, or child of that person. | 7 | | (Source: P.A. 97-315, eff. 1-1-12.)
| 8 | | (205 ILCS 405/11) (from Ch. 17, par. 4819)
| 9 | | Sec. 11.
Such license, if issued for a community currency | 10 | | exchange, shall
state the name of the licensee and the address | 11 | | at which the business is to
be conducted. Such license, or and | 12 | | its annual renewal, shall be kept conspicuously posted in the | 13 | | place
of business of the licensee and shall not be transferable | 14 | | or assignable. If
issued for an ambulatory currency exchange, | 15 | | it shall so state, and shall
state the name and office address | 16 | | of the licensee, and the name and address
of the location or | 17 | | locations to be served by the licensee, and shall not be
| 18 | | transferable and assignable.
| 19 | | (Source: P.A. 97-315, eff. 1-1-12.)
| 20 | | (205 ILCS 405/18) (from Ch. 17, par. 4834)
| 21 | | Sec. 18.
Proof of address. The applicant for a community | 22 | | currency exchange license shall have
a permanent address as | 23 | | evidenced by a lease of at least 6 six months duration
or other | 24 | | suitable evidence of permanency, and the license issued , |
| | | 09800HB2780sam001 | - 11 - | LRB098 09711 JLS 45641 a |
|
| 1 | | pursuant
to the application shall be valid only at that address | 2 | | in the application or any new address
approved by the | 3 | | Secretary. A letter of intent for a lease shall suffice for | 4 | | inclusion with the application, and evidence of an executed | 5 | | lease shall be considered ministerial in nature, to be | 6 | | furnished once the investigation is completed, the approval | 7 | | final, and
prior to the issuance of the license.
| 8 | | (Source: P.A. 97-315, eff. 1-1-12.)".
|
|