Full Text of HB3681 98th General Assembly
HB3681 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB3681 Introduced , by Rep. Lou Lang SYNOPSIS AS INTRODUCED: |
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Amends the Transmitters of Money Act. Changes the definition of "transmitting money" to exclude providing payment services to a seller of goods or services, a payee, or a payment processor in connection with the sale of goods or services. Effective immediately.
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| | A BILL FOR |
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| 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 5 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.
| 17 | | "Controlling person" means a person owning or holding the | 18 | | power to vote
25% or more of the outstanding voting securities | 19 | | of a licensee or the power to
vote the securities of another | 20 | | controlling person of the licensee. For
purposes of determining | 21 | | the percentage of a licensee controlled by a
controlling | 22 | | person,
the person's interest shall be combined with the | 23 | | interest of any other
person controlled, directly or |
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| 1 | | indirectly, by that person
or by a spouse, parent, or child of | 2 | | that person.
| 3 | | "Department" means the Department of Financial | 4 | | Institutions.
| 5 | | "Director" means the Director of Financial Institutions.
| 6 | | "Licensee" means a person licensed under this Act.
| 7 | | "Location" means a place of business at which activity | 8 | | regulated by this Act
occurs.
| 9 | | "Material litigation" means any litigation that, according | 10 | | to generally
accepted accounting principles, is deemed | 11 | | significant to a licensee's financial
health and would be | 12 | | required to be referenced in a licensee's annual audited
| 13 | | financial statements, reports to shareholders, or similar | 14 | | documents.
| 15 | | "Money" means a medium of exchange that is authorized or | 16 | | adopted by a
domestic or foreign government as a part of its | 17 | | currency and that is
customarily used and accepted as a medium | 18 | | of exchange in the country of
issuance.
| 19 | | "Money transmitter" means a person
who is located in or | 20 | | doing business in this State and who directly or through
| 21 | | authorized sellers does any of the
following in this State:
| 22 | | (1) Sells or issues payment instruments.
| 23 | | (2) Engages in the business of receiving money for | 24 | | transmission or
transmitting money.
| 25 | | (3) Engages in the business of exchanging, for | 26 | | compensation, money of the
United States Government or a |
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| 1 | | foreign government to or from money of another
government.
| 2 | | "Outstanding payment instrument" means, unless otherwise | 3 | | treated by or
accounted for under generally accepted accounting | 4 | | principles on the books of
the licensee, a payment instrument | 5 | | issued by the
licensee that has been sold in the United States | 6 | | directly by the licensee
or
has been sold in the United States | 7 | | by an
authorized seller of the licensee and reported
to the | 8 | | licensee as having been sold, but has not been paid by or for
| 9 | | the licensee.
| 10 | | "Payment instrument" means a check, draft, money order, | 11 | | traveler's check,
stored value card, or
other instrument or | 12 | | memorandum, written order or written receipt for the
| 13 | | transmission or payment of money sold or issued to one or more | 14 | | persons whether
or not that instrument or order is negotiable. | 15 | | Payment instrument does not
include an instrument that is | 16 | | redeemable by the issuer in merchandise or
service, a credit | 17 | | card voucher, or a letter of credit. A written order for the
| 18 | | transmission or payment of money that results in the issuance | 19 | | of a check,
draft, money order, traveler's check, or other | 20 | | instrument or memorandum is not
a
payment instrument.
| 21 | | "Person" means an individual, partnership, association, | 22 | | joint stock
association, corporation, or any other form of | 23 | | business organization.
| 24 | | "Stored value card" means any magnetic stripe card or other | 25 | | electronic
payment instrument given in exchange for
money and | 26 | | other similar consideration, including but not limited to
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| 1 | | checks, debit payments, money orders, drafts, credit payments, | 2 | | and traveler's
checks,
where the card
or other
electronic | 3 | | payment instrument represents a dollar value that the
consumer | 4 | | can either use or give to another
individual.
| 5 | | "Transmitting money" means the transmission of money by any | 6 | | means, including
transmissions to or from locations within the | 7 | | United States or to and from
locations outside of the United | 8 | | States by payment instrument, facsimile or
electronic | 9 | | transfer, or otherwise, and includes bill payment
services. | 10 | | "Transmitting money" does not include providing payment | 11 | | services to a seller of goods or services, a payee, or a | 12 | | payment processor in connection with the sale of goods or | 13 | | services, including (1) providing payment processing services | 14 | | and payment settlement services, (2) acting as an agent or | 15 | | service provider of entities that engage in payment processing | 16 | | or settlement services, or (3) receiving and disbursing | 17 | | currency, funds, or other value as an agent of the payee.
| 18 | | (Source: P.A. 92-400, eff. 1-1-02; 93-535, eff. 1-1-04.)
| 19 | | Section 99. Effective date. This Act takes effect upon | 20 | | becoming law.
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