Bill Amendment: IL HB0073 | 2023-2024 | 103rd General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: BUSINESS-TECH
Status: 2023-06-26 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [HB0073 Detail]
Download: Illinois-2023-HB0073-House_Amendment_001.html
Bill Title: BUSINESS-TECH
Status: 2023-06-26 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [HB0073 Detail]
Download: Illinois-2023-HB0073-House_Amendment_001.html
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1 | AMENDMENT TO HOUSE BILL 73
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2 | AMENDMENT NO. ______. Amend House Bill 73 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Consumer Legal Funding Act is amended by | ||||||
5 | changing Sections 5 and 55 as follows:
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6 | (815 ILCS 121/5)
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7 | Sec. 5. Definitions. | ||||||
8 | "Advertise" means publishing or disseminating any written, | ||||||
9 | electronic, or printed communication, or any communication by | ||||||
10 | means of recorded telephone messages or transmitted on radio, | ||||||
11 | television, the Internet, or similar communications media, | ||||||
12 | including film strips, motion pictures, and videos, published, | ||||||
13 | disseminated, circulated, or placed before the public, | ||||||
14 | directly or indirectly, for the purpose of inducing a consumer | ||||||
15 | to enter into a consumer legal funding. | ||||||
16 | "Charges" means the fees, as set forth in Section 25, to be |
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1 | paid to the consumer legal funding company by or on behalf of | ||||||
2 | the consumer above the funded amount provided by or on behalf | ||||||
3 | of the company to an Illinois consumer pursuant to this Act. | ||||||
4 | "Consumer" means a natural person who has a pending legal | ||||||
5 | claim and who resides or is domiciled in Illinois. | ||||||
6 | "Consumer legal funding" or "funding" means a nonrecourse | ||||||
7 | transaction in which a company purchases and a consumer | ||||||
8 | transfers to the company an unvested, contingent future | ||||||
9 | interest in the potential net proceeds of a settlement or | ||||||
10 | judgment obtained
from the consumer's legal claim; and in | ||||||
11 | which, if no proceeds are obtained from the consumer's legal | ||||||
12 | claim, the consumer is not required to repay the company the | ||||||
13 | consumer legal funding amount or charges. | ||||||
14 | "Consumer legal funding company" or "company" means a | ||||||
15 | person or entity that enters into, purchases, or services a | ||||||
16 | consumer legal funding transaction with an Illinois consumer. | ||||||
17 | "Consumer legal funding company" does not include:
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18 | (1) an immediate family member of the consumer; | ||||||
19 | (2) a bank, lender, financing entity, or other special | ||||||
20 | purpose entity: | ||||||
21 | (A) that provides financing to a consumer legal | ||||||
22 | funding company; or | ||||||
23 | (B) to which a consumer legal funding company | ||||||
24 | grants a security interest or transfers any rights or | ||||||
25 | interest in a consumer legal funding; or | ||||||
26 | (3) an attorney or accountant who provides services to |
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1 | a consumer. | ||||||
2 | "Department" means the Department of Financial and | ||||||
3 | Professional Regulation. | ||||||
4 | "Funded amount" means the amount of moneys provided to, or
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5 | on behalf of, the consumer in the consumer legal funding. | ||||||
6 | "Funded amount" does not include charges except for charges | ||||||
7 | that are deducted from the funded amount. | ||||||
8 | "Funding date" means the date on which the funded amount | ||||||
9 | is transferred to the consumer by the consumer legal funding | ||||||
10 | company either by personal delivery; via wire, ACH, or other | ||||||
11 | electronic means; or mailed by insured, certified, or | ||||||
12 | registered United States mail. | ||||||
13 | "Immediate family member" means a parent; sibling; child | ||||||
14 | by blood, adoption, or marriage; spouse; grandparent; or | ||||||
15 | grandchild. | ||||||
16 | "Legal claim" means a bona fide civil claim or cause of | ||||||
17 | action. | ||||||
18 | "Resolution amount" means the funded amount plus the | ||||||
19 | agreed-upon charges that are delivered to the consumer legal | ||||||
20 | funding company on the resolution date. | ||||||
21 | "Resolution date" means the date the resolution amount is | ||||||
22 | delivered to the consumer legal funding company. | ||||||
23 | "Secretary" means the Secretary of Financial and | ||||||
24 | Professional Regulation or the Secretary's designee.
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25 | (Source: P.A. 102-987, eff. 5-27-22.)
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1 | (815 ILCS 121/55)
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2 | Sec. 55. Consumer legal funding license scope. | ||||||
3 | (a) It shall be unlawful for any person or entity to | ||||||
4 | operate as a consumer legal funding provider in this State | ||||||
5 | except as authorized by this Act and without first having | ||||||
6 | obtained a license in accordance with this Act. No person or | ||||||
7 | entity may engage in any device, subterfuge, or pretense to | ||||||
8 | evade the requirements of this Act. However, any company that | ||||||
9 | has a license in good standing under the Consumer Installment | ||||||
10 | Loan Act on the effective date of this Act shall be entitled to | ||||||
11 | make consumer legal fundings under the terms of this Act upon | ||||||
12 | the effective date of this Act if that company files an | ||||||
13 | application for a consumer legal funding license within 60 | ||||||
14 | days after the Department issues forms for the filing of that | ||||||
15 | application and until the Department approves or denies the | ||||||
16 | application for a funding license. Any consumer legal funding | ||||||
17 | contract made by any person or entity in violation of this | ||||||
18 | subsection shall be null and void and the person or entity who | ||||||
19 | entered into the consumer legal funding transaction shall have | ||||||
20 | no right to collect, attempt to collect, receive, or retain | ||||||
21 | any principal, interest, or charges related to the consumer | ||||||
22 | legal funding transaction.
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23 | (b) The provisions of this Act do not apply to a bank, | ||||||
24 | savings bank, savings association, or credit union organized | ||||||
25 | under the laws of this State, any other state, or under the | ||||||
26 | laws of the United States.
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1 | (b-1) The provisions of this Act do not apply to consumer | ||||||
2 | legal funding if (i) the amount of funding is greater than | ||||||
3 | $500,000 and (ii) the consumer does not use or intend to use | ||||||
4 | any of the proceeds for personal, family, or household | ||||||
5 | expenses. | ||||||
6 | (c) Any consumer legal funding made by a person not | ||||||
7 | licensed under this Act, including a person holding an | ||||||
8 | inactive license, and not exempt under this Act shall be null | ||||||
9 | and void, and no person or entity shall have any right to | ||||||
10 | collect, attempt to collect, receive, or retain any principal, | ||||||
11 | fee, interest, or charges related to the funding.
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12 | (Source: P.A. 102-987, eff. 5-27-22.)".
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