Full Text of HB2293 95th General Assembly
HB2293ham001 95TH GENERAL ASSEMBLY
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Rep. Mary E. Flowers
Filed: 4/26/2007
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| AMENDMENT TO HOUSE BILL 2293
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| AMENDMENT NO. ______. Amend House Bill 2293 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Currency Exchange Act is amended by | 5 |
| changing Sections 1, 4.3, 8, and 19.3 and by adding Sections | 6 |
| 2.5 and 2.7 as follows:
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| (205 ILCS 405/1) (from Ch. 17, par. 4802)
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| Sec. 1. Definitions; application of Act. For the purposes | 9 |
| of this Act:
"Community currency exchange" means
any person, | 10 |
| firm, association, partnership, limited liability company, or
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| corporation, except an
ambulatory currency exchange as | 12 |
| hereinafter defined, banks incorporated
under the laws of this | 13 |
| State and National Banks organized pursuant to the
laws of the | 14 |
| United States, engaged in the business or service of, and
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| providing facilities for, cashing checks, drafts, money orders | 16 |
| or any other
evidences of money acceptable to such community |
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| currency exchange, for a
fee or service charge or other | 2 |
| consideration, or engaged in the business of
selling or issuing | 3 |
| money orders under his or their or its name, or any
other money | 4 |
| orders (other than United States Post Office money orders,
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| Postal Telegraph Company money orders, or Western Union | 6 |
| Telegraph Company
money orders), or engaged in both such | 7 |
| businesses, or engaged in performing
any one or more of the | 8 |
| foregoing services.
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| "Ambulatory Currency Exchange" means any person, firm, | 10 |
| association,
partnership, limited liability company, or | 11 |
| corporation, except banks organized under the laws of this
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| State and National Banks organized pursuant to the laws of the | 13 |
| United
States, engaged in one or both of the foregoing | 14 |
| businesses, or engaged in
performing any one or more of the | 15 |
| foregoing services, solely on the
premises of the employer | 16 |
| whose employees are being served.
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| "Location" when used with reference to an ambulatory | 18 |
| currency exchange
means the premises of the employer whose | 19 |
| employees are or are to be served
by an ambulatory currency | 20 |
| exchange.
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| "Director" means the Director of Financial Institutions. | 22 |
| "Payday loan" shall have the same meaning as in the Payday | 23 |
| Loan Reform Act. | 24 |
| "Public utility" shall have the same meaning as in the | 25 |
| Public Utilities Act. | 26 |
| "Refund anticipation loan" shall have the same meaning in |
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| the Tax Refund Anticipation Loan Disclosure Act.
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| Nothing in this Act shall be held to apply to any person, | 3 |
| firm,
association, partnership, limited liability company, or | 4 |
| corporation who is
engaged primarily in the
business of | 5 |
| transporting for hire, bullion, currency, securities,
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| negotiable or non-negotiable documents, jewels or other | 7 |
| property of great
monetary value and who in the course of such | 8 |
| business and only as an
incident thereto, cashes checks, | 9 |
| drafts, money orders or other evidences of
money directly for, | 10 |
| or for the employees of and with the funds of and at a
cost only | 11 |
| to, the person, firm, association, partnership, limited | 12 |
| liability
company, or corporation for
whom he or it is then | 13 |
| actually transporting such bullion, currency,
securities, | 14 |
| negotiable or non-negotiable documents, jewels, or other
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| property of great monetary value, pursuant to a written | 16 |
| contract for such
transportation and all incidents thereof, nor | 17 |
| shall it apply to any person,
firm, association, partnership, | 18 |
| limited liability company, or corporation
engaged in the | 19 |
| business of
selling tangible personal property at retail who, | 20 |
| in the course of such
business and only as an incident thereto, | 21 |
| cashes checks, drafts, money
orders or other evidences of | 22 |
| money.
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| (Source: P.A. 90-545, eff. 1-1-98.)
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| (205 ILCS 405/2.5 new)
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| Sec. 2.5. State business with currency exchanges. No State |
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| agencies shall enter into or renew any contracts with any | 2 |
| community currency exchange or ambulatory currency exchange | 3 |
| for any business if the community currency exchange or | 4 |
| ambulatory currency exchange fails to agree to limit any | 5 |
| required transaction fees for accepting utility bill payments | 6 |
| to no higher than $0.75 per payment. Each community currency | 7 |
| exchange and ambulatory currency exchange bidding for any State | 8 |
| business shall, as part of its application, provide copies of | 9 |
| any contracts it maintains with public utilities showing that | 10 |
| no fees in excess of those in this Section shall be accepted or | 11 |
| required by the community currency exchange or ambulatory | 12 |
| currency exchange. | 13 |
| (205 ILCS 405/2.7 new)
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| Sec. 2.7. State agencies and exclusive agreements. No State | 15 |
| agency shall enter into an exclusive agreement with a community | 16 |
| currency exchange or ambulatory currency exchange or exchanges | 17 |
| for the delivery of any service unless the State agency shall | 18 |
| make a determination that there is no other economically | 19 |
| feasible method of providing the contracted-for service.
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| (205 ILCS 405/4.3) (from Ch. 17, par. 4811)
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| Sec. 4.3. Upon receipt of an application from an ambulatory | 22 |
| currency
exchange for the conduct of its business at a location | 23 |
| to be served by
it, the Director of Financial Institutions | 24 |
| shall
cause an investigation to be made to determine whether to |
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| issue
said license. No fee shall be charged for the | 2 |
| investigation of an
application for a location license. The
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| Director shall employ the following criteria
in making his | 4 |
| determination:
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| (1) the economic benefit and convenience to the persons to | 6 |
| be
served at the location for which a license has been | 7 |
| requested;
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| (2) the effect that granting a license will have on the
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| financial stability of community currency exchanges;
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| (2)
(3) safety benefits, if any, which may accrue from the | 11 |
| granting of the
location license;
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| (3)
(4) the effects, if any, which granting of a license | 13 |
| will
have on traffic, and traffic congestion in the immediate | 14 |
| area
of the location to be served;
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| (4) the availability of free or reduced-cost checking | 16 |
| account services within the community to be served by the | 17 |
| license; and
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| (5) such other factors as the Director shall deem proper | 19 |
| and relevant.
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| (Source: P.A. 85-1356.)
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| (205 ILCS 405/8) (from Ch. 17, par. 4815)
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| Sec. 8. A community or an ambulatory currency exchange | 23 |
| shall not be
conducted as a department of another business. It | 24 |
| must be an entity,
financed and conducted as a separate | 25 |
| business unit. This shall not prevent
a community or an |
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| ambulatory currency exchange from leasing a part of the
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| premises of another business for the conduct of this business | 3 |
| on the same
premises; provided, that no community currency | 4 |
| exchange shall be conducted
on the same premises with a | 5 |
| business whose chief source of revenue is
derived from the sale | 6 |
| of alcoholic liquor for consumption on the premises or whose | 7 |
| chief source of revenue is derived from the sale of payday | 8 |
| loans or refund anticipation loans ;
provided, further, that no | 9 |
| community currency exchange hereafter licensed
for the first | 10 |
| time shall share any room with any other business, trade or
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| profession nor shall it occupy any room from which there is | 12 |
| direct access
to a room occupied by any other business, trade | 13 |
| or profession.
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| (Source: Laws 1951, p. 562.)
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| (205 ILCS 405/19.3) (from Ch. 17, par. 4838)
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| Sec. 19.3. (A) The General Assembly hereby finds and | 17 |
| declares: community
currency exchanges and ambulatory currency | 18 |
| exchanges provide important and
vital services to Illinois | 19 |
| citizens. In so doing, they transact extensive
business | 20 |
| involving check cashing and the writing of money orders in | 21 |
| communities
in which banking services are generally | 22 |
| unavailable. Customers of currency
exchanges who receive these | 23 |
| services must be protected from being charged
unreasonable and | 24 |
| unconscionable rates for cashing checks and purchasing
money | 25 |
| orders. The Illinois Department of Financial Institutions has |
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| the
responsibility for regulating the operations of currency | 2 |
| exchanges and has
the expertise to determine reasonable maximum | 3 |
| rates to be charged for check
cashing and money order | 4 |
| purchases. Therefore, it is in the public interest,
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| convenience, welfare and good to have the Department establish | 6 |
| reasonable
maximum rate schedules for check cashing and the | 7 |
| issuance of money orders
and to require community and | 8 |
| ambulatory currency exchanges to prominently
display to the | 9 |
| public the fees charged for all services.
The Director shall | 10 |
| review, each year, the cost of operation of the Currency
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| Exchange Division and the revenue generated from currency | 12 |
| exchange
examinations and report to the General Assembly if the | 13 |
| need exists for an
increase in the fees mandated by this Act to | 14 |
| maintain the Currency Exchange
Division at a fiscally | 15 |
| self-sufficient level. The Director shall include
in such | 16 |
| report the total amount of funds remitted to the State and | 17 |
| delivered
to the State Treasurer by currency exchanges pursuant | 18 |
| to the Uniform
Disposition of Unclaimed Property Act.
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| (B) The Director shall, by rules adopted in accordance with | 20 |
| the Illinois
Administrative Procedure Act, expeditiously | 21 |
| formulate and issue schedules of
reasonable maximum rates which | 22 |
| can be charged for check cashing and writing of
money orders by | 23 |
| community currency exchanges and ambulatory currency | 24 |
| exchanges.
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| (1) In determining the maximum rate schedules for the | 26 |
| purposes of this
Section the Director shall take into |
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| account:
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| (a) Rates charged in the past for the cashing of | 3 |
| checks and the issuance
of money orders by community | 4 |
| and ambulatory currency exchanges.
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| (b) Rates charged by banks or other business | 6 |
| entities for rendering the
same or similar services and | 7 |
| the factors upon which those rates are based.
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| (c) The income, cost and expense of the operation | 9 |
| of currency exchanges.
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| (d) Rates charged by currency exchanges or other | 11 |
| similar entities
located in other states for the same | 12 |
| or similar services and the factors upon
which those | 13 |
| rates are based.
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| (e) Rates charged by the United States Postal | 15 |
| Service for the issuing
of money orders and the factors | 16 |
| upon which those rates are based.
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| (f) A reasonable profit for a currency exchange | 18 |
| operation.
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| (g) The financial impact upon low-income customers | 20 |
| in the community. | 21 |
| (h) The availability of free or reduced-cost | 22 |
| checking account services within the community.
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| (2) (a) The schedule of reasonable maximum rates | 24 |
| established pursuant
to this Section may be modified by the | 25 |
| Director from time to time pursuant
to rules adopted in | 26 |
| accordance with the Illinois Administrative Procedure Act.
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| (b) Upon the filing of a verified petition setting | 2 |
| forth allegations
demonstrating reasonable cause to | 3 |
| believe that the schedule of maximum rates
previously | 4 |
| issued and promulgated should be adjusted, the Director | 5 |
| shall
expeditiously:
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| (i) reject the petition if it fails to demonstrate | 7 |
| reasonable cause to
believe that an adjustment is | 8 |
| necessary; or
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| (ii) conduct such hearings, in accordance with | 10 |
| this Section, as may be
necessary to determine whether | 11 |
| the petition should be granted in whole or in
part.
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| (c) No petition may be filed pursuant to subparagraph | 13 |
| (a) of paragraph
(2) of subsection (B) unless:
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| (i) at least nine months have expired since the | 15 |
| last promulgation of
schedules of maximum rates; and
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| (ii) at least one-fourth of all community currency | 17 |
| exchange licensees
join in a petition or, in the case | 18 |
| of ambulatory currency exchanges, a licensee
or | 19 |
| licensees authorized to serve at least 100 locations | 20 |
| join in a petition.
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| (3) Any currency exchange may charge lower fees than those | 22 |
| of the
applicable maximum fee schedule after filing with the | 23 |
| Director a schedule of
fees it proposes to use.
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| (Source: P.A. 91-16, eff. 7-1-99.)
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| Section 99. Effective date. This Act takes effect upon |
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| becoming law.".
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