Full Text of HB3681 98th General Assembly
HB3681ham001 98TH GENERAL ASSEMBLY | Rep. Lou Lang Filed: 2/24/2014
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| 1 | | AMENDMENT TO HOUSE BILL 3681
| 2 | | AMENDMENT NO. ______. Amend House Bill 3681 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Transmitters of Money Act is amended by | 5 | | changing Sections 5 and 15 as follows:
| 6 | | (205 ILCS 657/5)
| 7 | | Sec. 5. Definitions. As used in this Act, unless the | 8 | | context otherwise
requires, the words and phrases defined in | 9 | | this Section have the meanings
set forth in this Section.
| 10 | | "Authorized seller" means a person not an employee of a | 11 | | licensee who
engages in the business regulated by this Act on | 12 | | behalf of a licensee under
a contract between that person and | 13 | | the licensee.
| 14 | | "Bill payment service" means the business of transmitting | 15 | | money on behalf
of an Illinois resident for the purpose of | 16 | | paying the resident's bills.
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| 1 | | "Controlling person" means a person owning or holding the | 2 | | power to vote
25% or more of the outstanding voting securities | 3 | | of a licensee or the power to
vote the securities of another | 4 | | controlling person of the licensee. For
purposes of determining | 5 | | the percentage of a licensee controlled by a
controlling | 6 | | person,
the person's interest shall be combined with the | 7 | | interest of any other
person controlled, directly or | 8 | | indirectly, by that person
or by a spouse, parent, or child of | 9 | | that person.
| 10 | | "Department" means the Department of Financial | 11 | | Institutions.
| 12 | | "Director" means the Director of Financial Institutions.
| 13 | | "Licensee" means a person licensed under this Act.
| 14 | | "Location" means a place of business at which activity | 15 | | regulated by this Act
occurs.
| 16 | | "Material litigation" means any litigation that, according | 17 | | to generally
accepted accounting principles, is deemed | 18 | | significant to a licensee's financial
health and would be | 19 | | required to be referenced in a licensee's annual audited
| 20 | | financial statements, reports to shareholders, or similar | 21 | | documents.
| 22 | | "Money" means a medium of exchange that is authorized or | 23 | | adopted by a
domestic or foreign government as a part of its | 24 | | currency and that is
customarily used and accepted as a medium | 25 | | of exchange in the country of
issuance.
| 26 | | "Money transmitter" means a person
who is located in or |
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| 1 | | doing business in this State and who directly or through
| 2 | | authorized sellers does any of the
following in this State:
| 3 | | (1) Sells or issues payment instruments.
| 4 | | (2) Engages in the business of receiving money for | 5 | | transmission or
transmitting money.
| 6 | | (3) Engages in the business of exchanging, for | 7 | | compensation, money of the
United States Government or a | 8 | | foreign government to or from money of another
government.
| 9 | | "Outstanding payment instrument" means, unless otherwise | 10 | | treated by or
accounted for under generally accepted accounting | 11 | | principles on the books of
the licensee, a payment instrument | 12 | | issued by the
licensee that has been sold in the United States | 13 | | directly by the licensee
or
has been sold in the United States | 14 | | by an
authorized seller of the licensee and reported
to the | 15 | | licensee as having been sold, but has not been paid by or for
| 16 | | the licensee.
| 17 | | "Payment instrument" means a check, draft, money order, | 18 | | traveler's check,
stored value card, or
other instrument or | 19 | | memorandum, written order or written receipt for the
| 20 | | transmission or payment of money sold or issued to one or more | 21 | | persons whether
or not that instrument or order is negotiable. | 22 | | Payment instrument does not
include an instrument that is | 23 | | redeemable by the issuer in merchandise or
service, a credit | 24 | | card voucher, or a letter of credit. A written order for the
| 25 | | transmission or payment of money that results in the issuance | 26 | | of a check,
draft, money order, traveler's check, or other |
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| 1 | | instrument or memorandum is not
a
payment instrument.
| 2 | | "Person" means an individual, partnership, association, | 3 | | joint stock
association, corporation, or any other form of | 4 | | business organization.
| 5 | | "Stored value card" means any magnetic stripe card or other | 6 | | electronic
payment instrument given in exchange for
money and | 7 | | other similar consideration, including but not limited to
| 8 | | checks, debit payments, money orders, drafts, credit payments, | 9 | | and traveler's
checks,
where the card
or other
electronic | 10 | | payment instrument represents a dollar value that the
consumer | 11 | | can either use or give to another
individual.
| 12 | | "Transmitting money" means the transmission of money by any | 13 | | means, including
transmissions to or from locations within the | 14 | | United States or to and from
locations outside of the United | 15 | | States by payment instrument, facsimile or
electronic | 16 | | transfer, or otherwise, and includes bill payment
services. | 17 | | "Transmitting money" does not include providing payment | 18 | | services to a seller of goods or services, a payee, or a | 19 | | payment processor in connection with the sale of goods or | 20 | | services, including (1) providing payment processing services | 21 | | and payment settlement services, (2) acting as an agent or | 22 | | service provider of entities that engage in payment processing | 23 | | or settlement services, or (3) receiving and disbursing | 24 | | currency, funds, or other value as an agent of the payee.
| 25 | | (Source: P.A. 92-400, eff. 1-1-02; 93-535, eff. 1-1-04.)
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| 1 | | (205 ILCS 657/15)
| 2 | | Sec. 15. Exemptions. The following are exempt from the
| 3 | | licensing requirements of this Act:
| 4 | | (1) The United States and any department or agency of | 5 | | the United States.
| 6 | | (2) This State and any political subdivision of this | 7 | | State.
| 8 | | (3) Banks, trust companies, building and loan | 9 | | associations, savings and loan
associations, savings | 10 | | banks, or credit unions, licensed or organized under the
| 11 | | laws of any
state
or of the United States and any foreign | 12 | | bank maintaining a branch or agency
licensed or organized | 13 | | under the laws of any state or of the United States.
| 14 | | (4) Currency exchanges licensed under the Currency | 15 | | Exchange Act are exempt
from licensing only for (i) the | 16 | | issuance of money orders or (ii) the sale, loading, or | 17 | | unloading of stored value cards.
| 18 | | (5) Corporations and associations exempt under item | 19 | | (3) or (4) from
the licensing
requirements of this Act are | 20 | | not exempt
from approval by the Director as authorized | 21 | | sellers. Nothing in this Act shall
be
deemed to enlarge the | 22 | | powers of those corporations and associations.
| 23 | | (6) An operator of a payment system to the extent that | 24 | | it provides processing, clearing, or settlement services | 25 | | between or among persons exempt under this Section in | 26 | | connection with wire transfers, credit card transactions, |
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| 1 | | debit card transactions, stored value transactions, | 2 | | automated clearing house transfers, or similar funds | 3 | | transfers. | 4 | | (Source: P.A. 97-511, eff. 8-23-11.)
| 5 | | Section 99. Effective date. This Act takes effect upon | 6 | | becoming law.".
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