101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5477

 

Introduced , by Rep. Lamont J. Robinson, Jr.

 

SYNOPSIS AS INTRODUCED:
 
205 ILCS 657/90

    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.


LRB101 19226 BMS 68690 b

 

 

A BILL FOR

 

HB5477LRB101 19226 BMS 68690 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Transmitters of Money Act is amended by
5changing 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
9committed or is about to commit a violation of this Act, a rule
10promulgated under this Act, or an order of the Director, the
11Director may apply to the circuit court for an order enjoining
12the person from violating or continuing to violate this Act,
13the rule, or order and for injunctive or other relief that the
14nature of the case may require and may, in addition, request
15the court to assess a civil penalty up to $1,000 along with
16costs and attorney fees.
17    (b) If the Director finds, after an investigation that he
18considers appropriate, that a licensee or other person is
19engaged in practices contrary to this Act or to the rules
20promulgated under this Act, the Director may issue an order
21directing the licensee or person to cease and desist the
22violation. The Director may, in addition to or without the
23issuance of a cease and desist order, assess an administrative

 

 

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1penalty up to $1,000 against a licensee for each violation of
2this Act or the rules promulgated under this Act. The issuance
3of an order under this Section shall not be a prerequisite to
4the taking of any action by the Director under this or any
5other Section of this Act. The Director shall serve notice of
6his action, including a statement of the reasons for his
7actions, either personally or by certified mail, return receipt
8requested. Service by mail shall be deemed completed if the
9notice is deposited in the post office, postage paid, addressed
10to the last known address for a license.
11    (c) In the case of the issuance of a cease and desist order
12or assessment order, a hearing may be requested in writing
13within 30 days after the date of service. The hearing shall be
14held at the time and place designated by the Director in either
15the City of Springfield or the City of Chicago. The Director
16and any administrative law judge designated by him shall have
17the power to administer oaths and affirmations, subpoena
18witnesses and compel their attendance, take evidence,
19authorize the taking of depositions, and require the production
20of books, papers, correspondence, and other records or
21information that he considers relevant or material to the
22inquiry.
23    (d) After the Director's final determination under a
24hearing under this Section, a party to the proceedings whose
25interests are affected by the Director's final determination
26shall be entitled to judicial review of that final

 

 

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1determination under the Administrative Review Law.
2    (e) The costs for administrative hearings shall be set by
3rule.
4    (f) Except as otherwise provided in this Act, a violation
5of 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
8promulgated under this Act and each day that a violation
9continues shall be a separate offense.
10    (h) A person who engages in conduct requiring a license
11under this Act and fails to obtain a license from the Director
12or knowingly makes a false statement, misrepresentation, or
13false certification in an application, financial statement,
14account record, report, or other document filed or required to
15be maintained or filed under this Act or who knowingly makes a
16false entry or omits a material entry in a document is guilty
17of a Class 3 felony.
18    (i) The Director is authorized to compromise, settle, and
19collect civil penalties and administrative penalties, as set by
20rule, with any person for violations of this Act or of any rule
21or order issued or promulgated under this Act. Any person who,
22without the required license, engages in conduct requiring a
23license under this Act shall be liable to the Department in an
24amount equal to the greater of (i) $5,000 or (ii) an amount of
25money accepted for transmission plus an amount equal to 3 times
26the amount accepted for transmission. The Department shall

 

 

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1cause any funds so recovered to be deposited in the TOMA
2Consumer Protection Fund.
3    (j) The Director may enter into consent orders at any time
4with a person to resolve a matter arising under this Act. A
5consent order must be signed by the person to whom it is issued
6and must indicate agreement to the terms contained in it. A
7consent order need not constitute an admission by a person that
8this Act or a rule or order issued or promulgated under this
9Act has been violated, nor need it constitute a finding by the
10Director that the person has violated this Act or a rule or
11order promulgated under this Act.
12    (k) Notwithstanding the issuance of a consent order, the
13Director may seek civil or criminal penalties or compromise
14civil penalties concerning matter encompassed by the consent
15order unless the consent order by its terms expressly precludes
16the Director from doing so.
17    (l) Appeals from all final orders and judgments entered by
18the circuit court under this Section in review of a decision of
19the Director may be taken as in other civil actions by any
20party to the proceeding.
21    (m) Notwithstanding the provisions of this Section, the
22Director 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

 

 

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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.)