Full Text of HB5477 101st General Assembly
HB5477 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB5477 Introduced , by Rep. Lamont J. Robinson, Jr. SYNOPSIS AS INTRODUCED: |
| |
Amends the Transmitters of Money Act. Provides that the Director of Financial Institutions of the Department of Financial and Professional Regulation shall not issue an order against a money transmitter for practices contrary to the Act solely because the entity provides or has provided financial services to a cannabis-related legitimate business. Provides that the Director shall not prohibit, penalize, or otherwise discourage a money transmitter from providing financial services to a cannabis-related legitimate business solely because the entity provides or has provided financial services to a cannabis-related legitimate business. Provides that the Director shall not recommend, incentivize, or encourage a money transmitter not to offer financial services or to downgrade or cancel the financial services offered to an account holder solely because of specified reasons related to owning or operating a cannabis-related legitimate business.
|
| |
| | A BILL FOR |
|
| | | HB5477 | | LRB101 19226 BMS 68690 b |
|
| 1 | | AN ACT concerning regulation.
| 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 Section 90 as follows:
| 6 | | (205 ILCS 657/90)
| 7 | | Sec. 90. Enforcement.
| 8 | | (a) If it appears to the Director that a person
has | 9 | | committed or is about to commit a violation of this Act,
a rule | 10 | | promulgated under this Act, or an order of the Director, the | 11 | | Director
may apply to the circuit court for an order enjoining | 12 | | the person from violating
or continuing to violate this Act, | 13 | | the rule, or order and for
injunctive or other relief that the | 14 | | nature of the case may require and may,
in addition, request | 15 | | the court to assess a civil penalty up to $1,000
along with | 16 | | costs and attorney fees.
| 17 | | (b) If the Director finds, after an investigation that he | 18 | | considers
appropriate, that a licensee or other person is | 19 | | engaged in practices
contrary to this Act or to the rules | 20 | | promulgated under this Act, the Director
may issue an order | 21 | | directing the licensee or person to cease and desist the
| 22 | | violation. The Director may, in addition to or without the | 23 | | issuance of a cease
and desist order, assess an administrative |
| | | HB5477 | - 2 - | LRB101 19226 BMS 68690 b |
|
| 1 | | penalty up to
$1,000 against a licensee for each violation of | 2 | | this Act or the rules
promulgated under this Act.
The issuance | 3 | | of an order under this Section shall not be a prerequisite to | 4 | | the
taking of any action by the Director under this or any | 5 | | other Section of this
Act. The Director shall serve notice of | 6 | | his action, including a statement of
the reasons for his | 7 | | actions, either personally or by certified mail, return
receipt | 8 | | requested. Service by mail shall be deemed completed if the | 9 | | notice is
deposited in the post office, postage paid, addressed | 10 | | to the last known address
for a license.
| 11 | | (c) In the case of the issuance of a cease and desist order | 12 | | or assessment
order, a hearing may be requested in writing | 13 | | within 30 days after the date of
service. The hearing shall be | 14 | | held at the time and place designated
by the Director in either | 15 | | the City of Springfield or the City of Chicago. The
Director | 16 | | and any administrative law judge designated by him shall have | 17 | | the
power to administer oaths and affirmations, subpoena | 18 | | witnesses and compel their
attendance, take evidence, | 19 | | authorize the taking of depositions, and require the
production | 20 | | of books, papers, correspondence, and other records or
| 21 | | information that he considers relevant or material to the | 22 | | inquiry.
| 23 | | (d) After the Director's final determination under a | 24 | | hearing under
this Section, a party to the proceedings whose | 25 | | interests are
affected by the Director's final determination | 26 | | shall be entitled to judicial
review of that final |
| | | HB5477 | - 3 - | LRB101 19226 BMS 68690 b |
|
| 1 | | determination under the Administrative Review Law.
| 2 | | (e) The costs for administrative hearings shall be set by | 3 | | rule.
| 4 | | (f) Except as otherwise provided in this Act, a violation | 5 | | of
this Act shall subject the party violating it to a fine of | 6 | | $1,000 for
each offense.
| 7 | | (g) Each transaction in violation of this Act or the rules | 8 | | promulgated
under this Act and each day that a violation | 9 | | continues shall be a separate
offense.
| 10 | | (h) A person who engages in conduct requiring a license | 11 | | under this Act and
fails to obtain a license from the Director | 12 | | or knowingly makes a false
statement, misrepresentation, or | 13 | | false certification in an application,
financial statement, | 14 | | account record, report, or other document filed or
required to | 15 | | be maintained or filed under this Act or who knowingly makes a
| 16 | | false entry or omits a material entry in a document is guilty | 17 | | of a Class
3 felony.
| 18 | | (i) The Director is authorized to compromise, settle, and | 19 | | collect civil
penalties and administrative penalties, as set by | 20 | | rule, with any person for
violations of this Act or of any rule | 21 | | or order issued or
promulgated under this Act.
Any person who, | 22 | | without the required license, engages in conduct requiring a
| 23 | | license
under this Act shall be liable to the Department in an
| 24 | | amount equal to
the greater of (i) $5,000 or (ii) an amount of | 25 | | money accepted for transmission
plus an
amount equal to 3 times
| 26 | | the
amount accepted for transmission. The Department shall |
| | | HB5477 | - 4 - | LRB101 19226 BMS 68690 b |
|
| 1 | | cause any funds so
recovered to be deposited in the TOMA | 2 | | Consumer Protection Fund.
| 3 | | (j) The Director may enter into consent orders at any time | 4 | | with a person
to resolve a matter arising under this Act. A | 5 | | consent order must be signed
by the person to whom it is issued | 6 | | and must indicate agreement to the terms
contained in it. A | 7 | | consent order need not constitute an admission by a
person that | 8 | | this Act or a rule or order issued or
promulgated under this | 9 | | Act has been violated, nor need it constitute a finding
by the | 10 | | Director that the person has violated this Act or a rule
or | 11 | | order promulgated under this Act.
| 12 | | (k) Notwithstanding the issuance of a consent order, the | 13 | | Director may seek
civil or criminal penalties or compromise | 14 | | civil penalties concerning matter
encompassed by the consent | 15 | | order unless the consent order by its terms
expressly precludes | 16 | | the Director from doing so.
| 17 | | (l) Appeals from all final orders and judgments entered by | 18 | | the circuit
court
under this Section in review of a decision of | 19 | | the Director may be taken as in
other civil actions by any | 20 | | party to the proceeding.
| 21 | | (m) Notwithstanding the provisions of this Section, the | 22 | | Director shall not: | 23 | | (1) issue an order against a money transmitter | 24 | | organized under this Act for practices contrary to this Act | 25 | | solely because the entity provides or has provided | 26 | | financial services to a cannabis-related legitimate |
| | | HB5477 | - 5 - | LRB101 19226 BMS 68690 b |
|
| 1 | | business; | 2 | | (2) prohibit, penalize, or otherwise discourage a | 3 | | money transmitter from providing financial services to a | 4 | | cannabis-related legitimate business solely because the | 5 | | entity provides or has provided financial services to a | 6 | | cannabis-related legitimate business; and | 7 | | (3) recommend, incentivize, or encourage a money | 8 | | transmitter not to offer financial services to an account | 9 | | holder or to downgrade or cancel the financial services | 10 | | offered to an account holder solely because: | 11 | | (A) the account holder is a manufacturer or | 12 | | producer, or is the owner, operator, or employee of a | 13 | | cannabis-related legitimate business; | 14 | | (B) the account holder later becomes an owner or | 15 | | operator of a cannabis-related legitimate business; or | 16 | | (C) the money transmitter was not aware that the | 17 | | account holder is the owner or operator of a | 18 | | cannabis-related legitimate business. | 19 | | (Source: P.A. 100-201, eff. 8-18-17.)
|
|