Illinois General Assembly - Full Text of HB5205
Illinois General Assembly

Previous General Assemblies

Full Text of HB5205  100th General Assembly




State of Illinois
2017 and 2018


Introduced , by Rep. Nicholas K Smith


205 ILCS 405/19.3  from Ch. 17, par. 4838

    Amends the Currency Exchange Act. Provides the maximum rates to be charged by community and ambulatory currency exchanges for cashing any check or issuing any money order. Provides that no community or ambulatory currency exchange shall charge a fee for cashing any check or issuing any money order in excess of the maximum rates. Deletes language requiring the Secretary of Financial and Professional Regulation to formulate and issue schedules of reasonable maximum rates for check cashing and money orders.

LRB100 18511 LNS 33729 b





HB5205LRB100 18511 LNS 33729 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 changing
5Section 19.3 as follows:
6    (205 ILCS 405/19.3)  (from Ch. 17, par. 4838)
7    Sec. 19.3. (A) The General Assembly hereby finds and
8declares: community currency exchanges and ambulatory currency
9exchanges provide important and vital services to Illinois
10citizens. In so doing, they transact extensive business
11involving check cashing and the writing of money orders in
12communities in which banking services are generally
13unavailable. Customers of currency exchanges who receive these
14services must be protected from being charged unreasonable and
15unconscionable rates for cashing checks and purchasing money
16orders. The Illinois Department of Financial and Professional
17Regulation has the responsibility for regulating the
18operations of currency exchanges and has the expertise to
19determine reasonable maximum rates to be charged for check
20cashing and money order purchases. Therefore, it is in the
21public interest, convenience, welfare and good to have the
22Department establish reasonable maximum rate schedules for
23check cashing and the issuance of money orders and to require



HB5205- 2 -LRB100 18511 LNS 33729 b

1community and ambulatory currency exchanges to prominently
2display to the public the fees charged for all services. The
3Secretary shall review, each year, the cost of operation of the
4Currency Exchange Section and the revenue generated from
5currency exchange examinations and report to the General
6Assembly if the need exists for an increase in the fees
7mandated by this Act to maintain the Currency Exchange Section
8at a fiscally self-sufficient level. The Secretary shall
9include in such report the total amount of funds remitted to
10the State and delivered to the State Treasurer by currency
11exchanges pursuant to the Revised Uniform Unclaimed Property
13    (B) The maximum rate to be charged by community and
14ambulatory currency exchanges for cashing any check shall not
15exceed (i) an amount equal to 1.4% of the face amount of the
16check plus a service charge of $1 for all checks $100 or less
17or (ii) an amount equal to 2.25% of the face amount of the
18check for all checks greater than $100.
19    The maximum rate to be charged by community and ambulatory
20currency exchanges for issuing any money order shall not exceed
21an amount equal to 1% of the face amount of the money order
22plus a service charge of $0.75.
23    No community or ambulatory currency exchange shall charge a
24fee for cashing any check or issuing any money order in excess
25of the maximum rates. The Secretary shall, by rules adopted in
26accordance with the Illinois Administrative Procedure Act,



HB5205- 3 -LRB100 18511 LNS 33729 b

1expeditiously formulate and issue schedules of reasonable
2maximum rates which can be charged for check cashing and
3writing of money orders by community currency exchanges and
4ambulatory currency exchanges.
5        (1) In determining the maximum rate schedules for the
6    purposes of this Section the Secretary shall take into
7    account:
8            (a) Rates charged in the past for the cashing of
9        checks and the issuance of money orders by community
10        and ambulatory currency exchanges.
11            (b) Rates charged by banks or other business
12        entities for rendering the same or similar services and
13        the factors upon which those rates are based.
14            (c) The income, cost and expense of the operation
15        of currency exchanges.
16            (d) Rates charged by currency exchanges or other
17        similar entities located in other states for the same
18        or similar services and the factors upon which those
19        rates are based.
20            (e) Rates charged by the United States Postal
21        Service for the issuing of money orders and the factors
22        upon which those rates are based.
23            (f) A reasonable profit for a currency exchange
24        operation.
25        (2)(a) The schedule of reasonable maximum rates
26    established pursuant to this Section may be modified by the



HB5205- 4 -LRB100 18511 LNS 33729 b

1    Secretary from time to time pursuant to rules adopted in
2    accordance with the Illinois Administrative Procedure Act.
3        (b) Upon the filing of a verified petition setting
4    forth allegations demonstrating reasonable cause to
5    believe that the schedule of maximum rates previously
6    issued and promulgated should be adjusted, the Secretary
7    shall expeditiously:
8            (i) reject the petition if it fails to demonstrate
9        reasonable cause to believe that an adjustment is
10        necessary; or
11            (ii) conduct such hearings, in accordance with
12        this Section, as may be necessary to determine whether
13        the petition should be granted in whole or in part.
14        (c) No petition may be filed pursuant to subparagraph
15    (a) of paragraph (2) of subsection (B) unless:
16            (i) at least nine months have expired since the
17        last promulgation of schedules of maximum rates; and
18            (ii) at least one-fourth of all community currency
19        exchange licensees join in a petition or, in the case
20        of ambulatory currency exchanges, a licensee or
21        licensees authorized to serve at least 100 locations
22        join in a petition.
23        (3) Any currency exchange may charge lower fees than
24    those of the applicable maximum fee schedule after filing
25    with the Secretary a schedule of fees it proposes to use.
26(Source: P.A. 100-22, eff. 1-1-18.)