Illinois General Assembly - Full Text of HB0104
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Full Text of HB0104  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 1/14/2021, by Rep. Jonathan Carroll


205 ILCS 405/4  from Ch. 17, par. 4808
205 ILCS 405/13.1  from Ch. 17, par. 4822
205 ILCS 405/14  from Ch. 17, par. 4823
205 ILCS 405/16  from Ch. 17, par. 4832
205 ILCS 660/5  from Ch. 17, par. 5205
205 ILCS 660/6  from Ch. 17, par. 5206
205 ILCS 665/4  from Ch. 17, par. 5304
205 ILCS 665/6  from Ch. 17, par. 5306
205 ILCS 670/2  from Ch. 17, par. 5402
205 ILCS 670/4  from Ch. 17, par. 5404
205 ILCS 670/8  from Ch. 17, par. 5408
205 ILCS 670/11  from Ch. 17, par. 5411
205 ILCS 670/12.5
815 ILCS 122/2-55
815 ILCS 122/3-5

    Amends the Currency Exchange Act, the Sales Finance Agency Act, the Debt Management Service Act, the Consumer Installment Loan Act, and the Payday Loan Reform Act. Changes application fees, license fees, initial license fees, and fees to operate under those Acts. Changes the fine for late annual consumer installment loan reports to $500 (instead of $25) for each day beyond March 1 such report is filed. Establishes an initial license fee to operate as a payday lender in the amount of $1,250. Changes the fine for late annual payday lender reports to $500 (instead of $25) for each day beyond March 1 such report is filed. In the Sales Finance Agency Act, the Consumer Installment Loan Act, and the Payday Loan Reform Act, makes changes to the expiration date of licenses under those Acts and adds a fee to reinstate an expired license. Effective immediately.

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HB0104LRB102 04057 BMS 14073 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 Currency Exchange Act is amended by
5changing Sections 4, 13.1, 14, and 16 as follows:
6    (205 ILCS 405/4)  (from Ch. 17, par. 4808)
7    Sec. 4. License application; contents; fees. A licensee
8shall obtain a separate license for each licensed location.
9Application for such license shall be in writing under oath
10and in the form prescribed and furnished by the Secretary.
11Each application shall contain the following:
12        (a) The applicant's full name and address (both of
13    residence and place of business) if the applicant is a
14    natural person, and if the applicant is a partnership,
15    limited liability company, or association, of every member
16    thereof, and the name and principal office if the
17    applicant is a corporation;
18        (b) The county and municipality, with street and
19    number, if any, where the community currency exchange is
20    to be conducted, if the application is for a community
21    currency exchange license;
22        (c) If the application is for an ambulatory currency
23    exchange license, the name and address of the employer at



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1    each location to be served by it; and
2        (d) In the case of a licensee's initial license
3    application, the applicant's occupation or profession; a
4    detailed statement of the applicant's business experience
5    for the 10 years immediately preceding the application; a
6    detailed statement of the applicant's finances; the
7    applicant's present or previous connection with any other
8    currency exchange; whether the applicant has ever been
9    involved in any civil or criminal litigation, and the
10    material facts pertaining thereto; whether the applicant
11    has ever been committed to any penal institution or
12    admitted to an institution for the care and treatment of
13    mentally ill persons; and the nature of applicant's
14    occupancy of the premises to be licensed where the
15    application is for a community currency exchange license.
16    If the applicant is a partnership, the information
17    specified herein shall be required of each partner. If the
18    applicant is a corporation or limited liability company,
19    the said information shall be required of each controlling
20    person thereof along with disclosure of their ownership
21    interests.
22    A licensee's initial community currency exchange license
23application shall be accompanied by a fee of $1,000 for the
24cost of investigating the applicant. A licensee's application
25for licenses for additional licensed locations shall be
26accompanied by a fee of $1,500 $1,000 for each additional



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1license. If the ownership of a licensee or licensed location
2changes, in whole or in part, a new application must be filed
3pursuant to this Section along with a $500 fee if the
4licensee's ownership interests have been transferred or sold
5to a new person or entity or a fee of $300 if the licensee's
6ownership interests have been transferred or sold to a current
7holder or holders of the licensee's ownership interests. When
8the application for a community currency exchange license has
9been approved by the Secretary and the applicant so advised,
10an additional sum of $500 $400 as an annual license fee for a
11period terminating on the last day of the current calendar
12year shall be paid to the Secretary by the applicant;
13provided, that the license fee for an applicant applying for
14such a license after July 1st of any year shall be $250 $200
15for the balance of such year. Upon receipt of a community
16currency exchange license application, the Secretary shall
17examine the application for completeness and notify the
18applicant in writing of any defect within 20 days after
19receipt. The applicant must remedy the defect within 10 days
20after the mailing of the notification of the defect by the
21Secretary. Failure to timely remedy the defect will void the
22application. Once the Secretary determines that the
23application is complete, the Secretary shall have 90 business
24days to approve or deny the application. If the application is
25denied, the Secretary shall send by United States mail notice
26of the denial to the applicant at the address set forth in the



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1application. If an application is denied, the applicant may,
2within 10 days after the date of the notice of denial, make a
3written request to the Secretary for a hearing on the
4application. The hearing shall be set for a date after the
5receipt by the Secretary of the request for a hearing, and
6written notice of the time and place of the hearing shall be
7mailed to the applicant no later than 15 days before the date
8of the hearing. The hearing shall be scheduled for a date
9within 56 days after the date of the receipt of the request for
10a hearing. The applicant shall pay the actual cost of making
11the transcript of the hearing prior to the Secretary's issuing
12his or her decision. The Secretary's decision is subject to
13review as provided in Section 22.01 of this Act.
14    An application for an ambulatory currency exchange license
15shall be accompanied by a fee of $1,000 $100, which fee shall
16be for the cost of investigating the applicant. An approved
17applicant shall not be required to pay the initial
18investigation fee of $1,000 $100 more than once. When the
19application for an ambulatory currency exchange license has
20been approved by the Secretary, and such applicant so advised,
21such applicant shall pay an annual license fee of $500 $25 for
22each and every location to be served by such applicant;
23provided that such license fee for an approved applicant
24applying for such a license after July 1st of any year shall be
25$250 $12 for the balance of such year for each and every
26location to be served by such applicant. Such an approved



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1applicant for an ambulatory currency exchange license, when
2applying for a license with respect to a particular location,
3shall file with the Secretary, at the time of filing an
4application, a letter of memorandum, which shall be in writing
5and under oath, signed by the owner or authorized
6representative of the business whose employees are to be
7served; such letter or memorandum shall contain a statement
8that such service is desired, and that the person signing the
9same is authorized so to do. The Secretary shall thereupon
10verify the authenticity of the letter or memorandum and the
11authority of the person who executed it, to do so.
12    The Department shall have 45 business days to approve or
13deny a licensee's request to purchase another currency
15(Source: P.A. 99-445, eff. 1-1-16.)
16    (205 ILCS 405/13.1)  (from Ch. 17, par. 4822)
17    Sec. 13.1. Consolidation of business locations. Whenever 2
18or more licensees desire to consolidate their places of
19business, they shall make application for such consolidation
20to the Secretary upon a form provided by him or her. This
21application shall state: (a) the name to be adopted and the
22location at which the business is to be located, which name and
23location shall be the same as one of the consolidating
24licensees; (b) that the owners or all partners or all
25stockholders or all members, as the case may be, of the



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1licensees involved in the contemplated consolidation, have
2approved the application; (c) a certification by the
3secretary, if any of the licensees be corporations, that the
4contemplated consolidation has been approved by all of the
5stockholders at a properly convened stockholders meeting; (d)
6other relevant information the Secretary may require.
7Simultaneously with the approval of the application by the
8Secretary, the licensee or licensees who will cease doing
9business shall: (a) surrender their license or licenses to the
10Secretary; (b) transfer all of their assets and liabilities to
11the licensee continuing to operate by virtue of the
12application; (c) apply to the Secretary of State, if they be
13corporations, for surrender of their corporate charter in
14accordance with the provisions of the Business Corporation Act
15of 1983.
16    An application for consolidation shall be approved or
17rejected by the Secretary within 30 days after receipt by him
18of such application and supporting documents required
19thereunder. The Secretary shall impose a consolidation fee of
20$500 $100 per application.
21    Such consolidation shall not affect suits pending in which
22the surrendering licensees are parties; nor shall such
23consolidation affect causes of action nor the rights of
24persons in particular; nor shall suits brought against such
25licensees in their former names be abated for that cause.
26    Nothing contained herein shall limit or prohibit any



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1action or remedy available to a licensee or to the Secretary
2under Sections 15, 15.1 to 15.1e or 15.2 of this Act.
3(Source: P.A. 97-315, eff. 1-1-12.)
4    (205 ILCS 405/14)  (from Ch. 17, par. 4823)
5    Sec. 14. Every licensee, shall, on or before November 15,
6pay to the Secretary the annual license fee or fees for the
7next succeeding calendar year and shall at the same time file
8with the Secretary the annual bond or bonds and the insurance
9policy or policies as and if required by this Act. The annual
10license fee for each community currency exchange shall be $500
11$400 for each licensee and $500 $400 for each additional
12licensed location. The annual license fee for each location
13served by an ambulatory currency exchange shall be $500 $25.
14(Source: P.A. 99-445, eff. 1-1-16; 99-549, eff. 7-15-16.)
15    (205 ILCS 405/16)  (from Ch. 17, par. 4832)
16    Sec. 16. Annual report; investigation; costs.
17    (a) Each licensee shall annually, on or before the 1st day
18of March, file a report with the Secretary for the calendar
19year period from January 1st through December 31st, giving
20such relevant information as the Secretary may reasonably
21require concerning, and for the purpose of examining, the
22business and operations during the preceding fiscal year
23period of each licensed currency exchange conducted by such
24licensee within the State. Such report shall be made under



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1oath and shall be in the form prescribed by the Secretary. The
2Secretary may at any time, and shall at least once in each
3year, investigate the currency exchange business of any
4licensee and of every person, partnership, association,
5limited liability company, and corporation who or which shall
6be engaged in the business of operating a currency exchange.
7For that purpose, the Secretary shall have free access to the
8offices and places of business and to such records of all such
9persons, firms, partnerships, associations, limited liability
10companies and members thereof, and corporations and to the
11officers and directors thereof that shall relate to such
12currency exchange business. The investigation may be conducted
13in conjunction with representatives of other State agencies or
14agencies of another state or of the United States as
15determined by the Secretary. The Secretary may at any time
16inspect the locations served by an ambulatory currency
17exchange, for the purpose of determining whether such currency
18exchange is complying with the provisions of this Act at each
19location served. The Secretary may require by subpoena the
20attendance of and examine under oath all persons whose
21testimony he may require relative to such business, and in
22such cases the Secretary, or any qualified representative of
23the Secretary whom the Secretary may designate, may administer
24oaths to all such persons called as witnesses, and the
25Secretary, or any such qualified representative of the
26Secretary, may conduct such examinations, and there shall be



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1paid to the Secretary for each such examination a fee of $500
2$250 for each day or part thereof for each qualified
3representative designated and required to conduct the
4examination; provided, however, that in the case of an
5ambulatory currency exchange, such fee shall be $150 for each
6day or part thereof.
7    (b) Confidentiality. All information collected by the
8Department in the course of an examination or investigation of
9an ambulatory or community currency exchange or applicant,
10including, by not limited to, any complaint against an
11ambulatory or community currency exchange filed with the
12Department, and information collected to investigate any such
13complaint shall be maintained for the confidential use of the
14Department and shall not be disclosed. The Department may not
15disclose such information to anyone other than law enforcement
16officials, other regulatory agencies that have an appropriate
17regulatory interest as determined by the Secretary, or to a
18party presenting a lawful subpoena to the Department.
19Information and documents disclosed to a federal, State,
20county, or local law enforcement agency shall not be disclosed
21by the agency for any purpose to any other agency or person. A
22formal complaint filed against a licensee by the Department or
23any order issued by the Department against a licensee shall be
24a public record, except as otherwise prohibited by law.
25(Source: P.A. 97-315, eff. 1-1-12.)



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1    Section 10. The Sales Finance Agency Act is amended by
2changing Sections 5 and 6 as follows:
3    (205 ILCS 660/5)  (from Ch. 17, par. 5205)
4    Sec. 5. If a licensee fails to renew his or her license by
5the 1st 31st day of December, it shall automatically expire on
6the 31st day of December and the licensee is not entitled to a
7hearing; however, the Director in his or her discretion, may
8reinstate an expired license upon payment of the annual
9renewal fee, and proof of good cause for failure to renew, and
10payment of an additional fee for failure to renew in a timely
11manner as determined by the Director.
12(Source: P.A. 90-437, eff. 1-1-98.)
13    (205 ILCS 660/6)  (from Ch. 17, par. 5206)
14    Sec. 6. A license fee of $1,250 $300 for the applicant's
15principal place of business and $1,000 $100 for each
16additional place of business for which a license is sought
17must be submitted with an application for license made before
18July 1 of any year. If application for a license is made on
19July 1 or thereafter, a license fee of $150 for the principal
20place of business and of $50 for each additional place of
21business must accompany the application. Each license remains
22in force until surrendered, suspended, or revoked. If the
23application for license is denied, the original license fee
24shall be retained by the State in reimbursement of its costs of



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1investigating that application.
2    Before the license is granted, the applicant shall prove
3in form satisfactory to the Director, that the applicant has a
4positive net worth of a minimum of $30,000.
5    A licensee must pay to the Department, and the Department
6must receive, by December 1 of each year, the renewal license
7application on forms prescribed by the Director and the
8following renewal fee $300 for the license for his principal
9place of business and one-half of the following renewal fee
10$100 for each additional license held as a renewal license fee
11for the succeeding calendar year: .
13500 or less.................... $500
14More than 500 and
15up to and including 1,000......
16$500 plus $10 per 50 transactions in excess of 500 transactions
17More than 1,000 and
18up to and including 10,000.....
19$1,000 plus $5 per 100 transactions in excess of 1,000 transactions
20More than 10,000 and
21up to and including 100,000....
22$1,450 plus $2.50 per 1,000 transactions in excess of 10,000 transactions



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1More than 100,000..............
2$1,675 plus $1.25 per 10,000 transactions in excess of 100,000 transactions
3    As used in this Section, "transactions" means loans made
4or acquired pursuant to this Act during the calendar year
5preceding the calendar year for which a licensee seeks to
6renew its license.
7(Source: P.A. 92-398, eff. 1-1-02.)
8    Section 15. The Debt Management Service Act is amended by
9changing Sections 4 and 6 as follows:
10    (205 ILCS 665/4)  (from Ch. 17, par. 5304)
11    Sec. 4. Application for license. Application for a license
12to engage in the debt management service business in this
13State shall be made to the Secretary and shall be in writing,
14under oath, and in the form prescribed by the Secretary.
15    Each applicant, at the time of making such application,
16shall pay to the Secretary the sum of $1,250 $30.00 as a fee
17for investigation of the applicant, and the additional sum of
18$100.00 as a license fee.
19    Every applicant shall submit to the Secretary, at the time
20of the application for a license, a bond to be approved by the
21Secretary in which the applicant shall be the obligor, in the
22sum of $25,000 or such additional amount as required by the
23Secretary based on the amount of disbursements made by the



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1licensee in the previous year, and in which an insurance
2company, which is duly authorized by the State of Illinois, to
3transact the business of fidelity and surety insurance shall
4be a surety.
5    The bond shall run to the Secretary for the use of the
6Department or of any person or persons who may have a cause of
7action against the obligor in said bond arising out of any
8violation of this Act or rules by a license. Such bond shall be
9conditioned that the obligor will faithfully conform to and
10abide by the provisions of this Act and of all rules,
11regulations and directions lawfully made by the Secretary and
12will pay to the Secretary or to any person or persons any and
13all money that may become due or owing to the State or to such
14person or persons, from said obligor under and by virtue of the
15provisions of this Act.
16(Source: P.A. 96-1420, eff. 8-3-10.)
17    (205 ILCS 665/6)  (from Ch. 17, par. 5306)
18    Sec. 6. Renewal of license. Each debt management service
19provider under the provisions of this Act may make application
20to the Secretary for renewal of its license, which application
21for renewal shall be on the form prescribed by the Secretary
22and shall be accompanied by a fee of $1,000 $100.00 together
23with a bond or other surety as required, in a minimum amount of
24$25,000 or such an amount as required by the Secretary based on
25the amount of disbursements made by the licensee in the



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1previous year. The application must be received by the
2Department no later than December 1 of the year preceding the
3year for which the application applies.
4(Source: P.A. 96-1420, eff. 8-3-10.)
5    Section 20. The Consumer Installment Loan Act is amended
6by changing Sections 2, 4, 8, 11, and 12.5 as follows:
7    (205 ILCS 670/2)  (from Ch. 17, par. 5402)
8    Sec. 2. Application; fees; positive net worth. Application
9for such license shall be in writing, and in the form
10prescribed by the Director. Such applicant at the time of
11making such application shall pay to the Director the sum of
12$1,250 $300 as an application fee and the additional sum of
13$450 as an annual license fee, for a period terminating on the
14last day of the current calendar year; provided that if the
15application is filed after June 30th in any year, such license
16fee shall be 1/2 of the annual license fee for such year.
17    Before the license is granted, every applicant shall prove
18in form satisfactory to the Director that the applicant has
19and will maintain a positive net worth of a minimum of $30,000.
20Every applicant and licensee shall maintain a surety bond in
21the principal sum of $25,000 issued by a bonding company
22authorized to do business in this State and which shall be
23approved by the Director. Such bond shall run to the Director
24and shall be for the benefit of any consumer who incurs damages



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1as a result of any violation of the Act or rules by a licensee.
2If the Director finds at any time that a bond is of
3insufficient size, is insecure, exhausted, or otherwise
4doubtful, an additional bond in such amount as determined by
5the Director shall be filed by the licensee within 30 days
6after written demand therefor by the Director. "Net worth"
7means total assets minus total liabilities.
8(Source: P.A. 92-398, eff. 1-1-02; 93-32, eff. 7-1-03.)
9    (205 ILCS 670/4)  (from Ch. 17, par. 5404)
10    Sec. 4. Investigation to determine whether license shall
11be issued. Upon the filing of an application and the payment of
12the fee, the Director shall investigate to determine (1) that
13the reputation of the applicant, including managers of a
14limited liability company, partners, owners, officers or
15directors thereof is such as to warrant belief that the
16business will be operated honestly and fairly within the
17purposes of this Act and (2) that the applicant meets the
18positive net worth requirement set forth in Section 2 of this
19Act. Unless the Director makes findings hereinabove
20enumerated, he or she shall not issue a license and shall
21notify the applicant of the denial and return to the applicant
22the sum paid by the applicant as a license fee, but shall
23retain the $1,250 $300 application fee. The Director shall
24approve or deny every application for license hereunder within
2560 days from the filing thereof with the fee.



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1(Source: P.A. 90-437, eff. 1-1-98; 90-575, eff. 3-20-98.)
2    (205 ILCS 670/8)  (from Ch. 17, par. 5408)
3    Sec. 8. Annual license fee; expenses fee - Expenses.
4Before the 1st day of each December, a licensee must pay to the
5Director, and the Department must receive, an the annual
6license fee calculated as set forth in the following required
7by Section 2 for the next succeeding calendar year. The
8license shall expire on the first of January unless the
9license fee has been paid prior thereto.
11500 or less.................... $500
12More than 500 and
13up to and including 1,000......
14$500 plus $10 per 50 transactions in excess of 500 transactions
15More than 1,000 and
16up to and including 10,000.....
17$1,000 plus $5 per 100 transactions in excess of 1,000 transactions
18More than 10,000 and
19up to and including 100,000....
20$1,450 plus $2.50 per 1,000 transactions in excess of 10,000 transactions



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1More than 100,000..............
2$1,675 plus $1.25 per 10,000 transactions in excess of 100,000 transactions
3    As used in this Section, "transactions" means loans made
4pursuant to this Act during the calendar year preceding the
5calendar year for which a licensee seeks to renew its license.
6    In addition to such license fee, the reasonable expense of
7any examination, investigation or custody by the Director
8under any provisions of this Act shall be borne by the
10    If a licensee fails to renew his or her license by the 1st
1131st day of December, it shall automatically expire on the
1231st of December and the licensee is not entitled to a hearing;
13however, the Director, in his or her discretion, may reinstate
14an expired license upon payment of the annual renewal fee, and
15proof of good cause for failure to renew, and payment of an
16additional fee for failure to renew in a timely manner as
17determined by the Director.
18(Source: P.A. 100-958, eff. 8-19-18.)
19    (205 ILCS 670/11)  (from Ch. 17, par. 5411)
20    Sec. 11. Books and records - Reports.
21    (a) Every licensee shall retain and use in his business or
22at another location approved by the Director such records as
23are required by the Director to enable the Director to
24determine whether the licensee is complying with the



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1provisions of this Act and the rules and regulations
2promulgated pursuant to this Act. Every licensee shall
3preserve the records of any loan for at least 2 years after
4making the final entry for such loan. Accounting systems
5maintained in whole or in part by mechanical or electronic
6data processing methods which provide information equivalent
7to that otherwise required and follow generally accepted
8accounting principles are acceptable for that purpose, if
9approved by the Director in writing.
10    (b) Each licensee shall annually, on or before the first
11day of March, file a report with the Director giving such
12relevant information as the Director may reasonably require
13concerning the business and operations during the preceding
14calendar year of each licensed place of business conducted by
15the licensee. The report must be received by the Department on
16or before March 1. The report shall be made under oath and in a
17form prescribed by the Director. Whenever a licensee operates
182 or more licensed offices or whenever 2 or more affiliated
19licensees operate licensed offices, a composite report of such
20group of licensed offices may be filed in lieu of individual
21reports. The Director may make and publish annually an
22analysis and recapitulation of such reports. The Director may
23fine each licensee $500 $25 for each day beyond March 1 such
24report is filed.
25(Source: P.A. 92-398, eff. 1-1-02.)



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1    (205 ILCS 670/12.5)
2    Sec. 12.5. Limited purpose branch.
3    (a) Upon the written approval of the Director, a licensee
4may maintain a limited purpose branch for the sole purpose of
5making loans as permitted by this Act. A limited purpose
6branch may include an automatic loan machine. No other
7activity shall be conducted at the site, including but not
8limited to, accepting payments, servicing the accounts, or
10    (b) The licensee must submit an application for a limited
11purpose branch to the Director on forms prescribed by the
12Director with an application fee of $1,250 $300. The approval
13for the limited purpose branch must be renewed concurrently
14with the renewal of the licensee's license along with a
15renewal fee as set forth in Section 8 of $300 for the limited
16purpose branch.
17    (c) The books, accounts, records, and files of the limited
18purpose branch's transactions shall be maintained at the
19licensee's licensed location. The licensee shall notify the
20Director of the licensed location at which the books,
21accounts, records, and files shall be maintained.
22    (d) The licensee shall prominently display at the limited
23purpose branch the address and telephone number of the
24licensee's licensed location.
25    (e) No other business shall be conducted at the site of the
26limited purpose branch unless authorized by the Director.



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1    (f) The Director shall make and enforce reasonable rules
2for the conduct of a limited purpose branch.
3    (g) A limited purpose branch may not be located within
41,000 feet of a facility operated by an inter-track wagering
5licensee or an organization licensee subject to the Illinois
6Horse Racing Act of 1975, on a riverboat or in a casino subject
7to the Illinois Gambling Act, or within 1,000 feet of the
8location at which the riverboat docks or within 1,000 feet of a
10(Source: P.A. 101-31, eff. 6-28-19.)
11    Section 25. The Payday Loan Reform Act is amended by
12changing Sections 2-55 and 3-5 as follows:
13    (815 ILCS 122/2-55)
14    Sec. 2-55. Information, reporting, and examination.
15    (a) A licensee shall keep and use books, accounts, and
16records that will enable the Secretary to determine if the
17licensee is complying with the provisions of this Act and
18maintain any other records as required by the Secretary.
19    (b) A licensee shall collect and maintain information
20annually for a report that shall disclose in detail and under
21appropriate headings:
22        (1) the total number of payday loans made during the
23    preceding calendar year;
24        (2) the total number of payday loans outstanding as of



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1    December 31 of the preceding calendar year;
2        (3) the minimum, maximum, and average dollar amount of
3    payday loans made during the preceding calendar year;
4        (4) the average annual percentage rate and the average
5    term of payday loans made during the preceding calendar
6    year; and
7        (5) the total number of payday loans paid in full, the
8    total number of loans that went into default, and the
9    total number of loans written off during the preceding
10    calendar year.
11    The report shall be verified by the oath or affirmation of
12the owner, manager, or president of the licensee. The report
13must be filed with the Secretary no later than March 1 of the
14year following the year for which the report discloses the
15information specified in this subsection (b). The Secretary
16may impose upon the licensee a fine of $500 $25 per day for
17each day beyond the filing deadline that the report is not
19    (c) No later than July 31 of the second year following the
20effective date of this Act, the Department shall publish a
21biennial report that contains a compilation of aggregate data
22concerning the payday lending industry and shall make the
23report available to the Governor, the General Assembly, and
24the general public.
25    (d) The Department shall have the authority to conduct
26examinations of the books, records, and loan documents at any



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2(Source: P.A. 94-13, eff. 12-6-05.)
3    (815 ILCS 122/3-5)
4    Sec. 3-5. Licensure.
5    (a) A license to make a payday loan shall state the
6address, including city and state, at which the business is to
7be conducted and shall state fully the name of the licensee.
8The license shall be conspicuously posted in the place of
9business of the licensee and shall not be transferable or
11    (b) An application for a license shall be in writing and in
12a form prescribed by the Secretary. The Secretary may not
13issue a payday loan license unless and until the following
14findings are made:
15        (1) that the financial responsibility, experience,
16    character, and general fitness of the applicant are such
17    as to command the confidence of the public and to warrant
18    the belief that the business will be operated lawfully and
19    fairly and within the provisions and purposes of this Act;
20    and
21        (2) that the applicant has submitted such other
22    information as the Secretary may deem necessary.
23    (c) A license shall be issued for no longer than one year,
24and no renewal of a license may be provided if a licensee has
25substantially violated this Act and has not cured the



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1violation to the satisfaction of the Department.
2    (d) A licensee shall appoint, in writing, the Secretary as
3attorney-in-fact upon whom all lawful process against the
4licensee may be served with the same legal force and validity
5as if served on the licensee. A copy of the written
6appointment, duly certified, shall be filed in the office of
7the Secretary, and a copy thereof certified by the Secretary
8shall be sufficient evidence to subject a licensee to
9jurisdiction in a court of law. This appointment shall remain
10in effect while any liability remains outstanding in this
11State against the licensee. When summons is served upon the
12Secretary as attorney-in-fact for a licensee, the Secretary
13shall immediately notify the licensee by registered mail,
14enclosing the summons and specifying the hour and day of
16    (e) A licensee must pay an initial annual fee of $1,250 and
17an annual renewal fee as set forth in the following: $1,000.
19500 or less.................... $500
20More than 500 and
21up to and including 1,000......
22$500 plus $10 per 50 transactions in excess of 500 transactions
23More than 1,000 and



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1up to and including 10,000.....
2$1,000 plus $5 per 100 transactions in excess of 1,000 transactions
3More than 10,000 and
4up to and including 100,000....
5$1,450 plus $2.50 per 1,000 transactions in excess of 10,000 transactions
6More than 100,000..............
7$1,675 plus $1.25 per 10,000 transactions in excess of 100,000 transactions
8    As used in this Section, "transactions" means loans made
9or acquired pursuant to this Act during the calendar year
10preceding the calendar year for which a licensee seeks to
11renew its license.
In addition to the license fee, the reasonable expense of
13any examination or hearing by the Secretary under any
14provisions of this Act shall be borne by the licensee. If a
15licensee fails to renew its license by December 1, its license
16shall automatically expire on December 31
; however, the
17Secretary, in his or her discretion, may reinstate an expired
18license upon:
19        (1) payment of the annual fee within 30 days of the
20    date of expiration; and
21        (2) proof of good cause for failure to renew; and .
22        (3) payment of an additional fee for failure to renew
23    in a timely manner as determined by the Secretary.



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1    (f) Not more than one place of business shall be
2maintained under the same license, but the Secretary may issue
3more than one license to the same licensee upon compliance
4with all the provisions of this Act governing issuance of a
5single license. The location, except those locations already
6in existence as of June 1, 2005, may not be within one mile of
7a horse race track subject to the Illinois Horse Racing Act of
81975, within one mile of a facility at which gambling is
9conducted under the Illinois Gambling Act, within one mile of
10the location at which a riverboat subject to the Illinois
11Gambling Act docks, or within one mile of any State of Illinois
12or United States military base or naval installation.
13    (g) No licensee shall conduct the business of making loans
14under this Act within any office, suite, room, or place of
15business in which (1) any loans are offered or made under the
16Consumer Installment Loan Act other than title secured loans
17as defined in subsection (a) of Section 15 of the Consumer
18Installment Loan Act and governed by Title 38, Section 110.330
19of the Illinois Administrative Code or (2) any other business
20is solicited or engaged in unless the other business is
21licensed by the Department or, in the opinion of the
22Secretary, the other business would not be contrary to the
23best interests of consumers and is authorized by the Secretary
24in writing.
25    (g-5) Notwithstanding subsection (g) of this Section, a
26licensee may obtain a license under the Consumer Installment



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1Loan Act (CILA) for the exclusive purpose and use of making
2title secured loans, as defined in subsection (a) of Section
315 of CILA and governed by Title 38, Section 110.300 of the
4Illinois Administrative Code. A licensee may continue to
5service Consumer Installment Loan Act loans that were
6outstanding as of the effective date of this amendatory Act of
7the 96th General Assembly.
8    (h) The Secretary shall maintain a list of licensees that
9shall be available to interested consumers and lenders and the
10public. The Secretary shall maintain a toll-free number
11whereby consumers may obtain information about licensees. The
12Secretary shall also establish a complaint process under which
13an aggrieved consumer may file a complaint against a licensee
14or non-licensee who violates any provision of this Act.
15(Source: P.A. 100-958, eff. 8-19-18; 101-31, eff. 6-28-19.)
16    Section 99. Effective date. This Act takes effect upon
17becoming law.