Bill Text: IL HB5205 | 2017-2018 | 100th General Assembly | Introduced
Bill Title: 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.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Failed) 2019-01-08 - Session Sine Die [HB5205 Detail]
Download: Illinois-2017-HB5205-Introduced.html
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| 1 | AN ACT concerning regulation.
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| 2 | Be it enacted by the People of the State of Illinois,
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| 3 | represented in the General Assembly:
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| 4 | Section 5. The Currency Exchange Act is amended by changing | |||||||||||||||||||
| 5 | Section 19.3 as follows:
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| 6 | (205 ILCS 405/19.3) (from Ch. 17, par. 4838)
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| 7 | Sec. 19.3. (A) The General Assembly hereby finds and | |||||||||||||||||||
| 8 | declares: community
currency exchanges and ambulatory currency | |||||||||||||||||||
| 9 | exchanges provide important and
vital services to Illinois | |||||||||||||||||||
| 10 | citizens. In so doing, they transact extensive
business | |||||||||||||||||||
| 11 | involving check cashing and the writing of money orders in | |||||||||||||||||||
| 12 | communities
in which banking services are generally | |||||||||||||||||||
| 13 | unavailable. Customers of currency
exchanges who receive these | |||||||||||||||||||
| 14 | services must be protected from being charged
unreasonable and | |||||||||||||||||||
| 15 | unconscionable rates for cashing checks and purchasing
money | |||||||||||||||||||
| 16 | orders. The Illinois Department of Financial and Professional | |||||||||||||||||||
| 17 | Regulation has the
responsibility for regulating the | |||||||||||||||||||
| 18 | operations of currency exchanges and has
the expertise to | |||||||||||||||||||
| 19 | determine reasonable maximum rates to be charged for check
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| 20 | cashing and money order purchases. Therefore, it is in the | |||||||||||||||||||
| 21 | public interest,
convenience, welfare and good to have the | |||||||||||||||||||
| 22 | Department establish reasonable
maximum rate schedules for | |||||||||||||||||||
| 23 | check cashing and the issuance of money orders
and to require | |||||||||||||||||||
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| 1 | community and ambulatory currency exchanges to prominently
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| 2 | display to the public the fees charged for all services.
The | ||||||
| 3 | Secretary shall review, each year, the cost of operation of the | ||||||
| 4 | Currency
Exchange Section and the revenue generated from | ||||||
| 5 | currency exchange
examinations and report to the General | ||||||
| 6 | Assembly if the need exists for an
increase in the fees | ||||||
| 7 | mandated by this Act to maintain the Currency Exchange Section
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| 8 | at a fiscally self-sufficient level. The Secretary shall | ||||||
| 9 | include
in such report the total amount of funds remitted to | ||||||
| 10 | the State and delivered
to the State Treasurer by currency | ||||||
| 11 | exchanges pursuant to the Revised Uniform
Unclaimed Property | ||||||
| 12 | Act.
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| 13 | (B) The maximum rate to be charged by community and | ||||||
| 14 | ambulatory currency exchanges for cashing any check shall not | ||||||
| 15 | exceed (i) an amount equal to 1.4% of the face amount of the | ||||||
| 16 | check plus a service charge of $1 for all checks $100 or less | ||||||
| 17 | or (ii) an amount equal to 2.25% of the face amount of the | ||||||
| 18 | check for all checks greater than $100. | ||||||
| 19 | The maximum rate to be charged by community and ambulatory | ||||||
| 20 | currency exchanges for issuing any money order shall not exceed | ||||||
| 21 | an amount equal to 1% of the face amount of the money order | ||||||
| 22 | plus a service charge of $0.75. | ||||||
| 23 | No community or ambulatory currency exchange shall charge a | ||||||
| 24 | fee for cashing any check or issuing any money order in excess | ||||||
| 25 | of the maximum rates. The Secretary shall, by rules adopted in | ||||||
| 26 | accordance with the Illinois
Administrative Procedure Act, | ||||||
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| 1 | expeditiously formulate and issue schedules of
reasonable | ||||||
| 2 | maximum rates which can be charged for check cashing and | ||||||
| 3 | writing of
money orders by community currency exchanges and | ||||||
| 4 | ambulatory currency exchanges.
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| 5 | (1) In determining the maximum rate schedules for the | ||||||
| 6 | purposes of this
Section the Secretary shall take into | ||||||
| 7 | account:
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| 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.
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| 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.
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| 14 | (c) The income, cost and expense of the operation | ||||||
| 15 | of currency exchanges.
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| 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.
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| 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.
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| 23 | (f) A reasonable profit for a currency exchange | ||||||
| 24 | operation.
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| 25 | (2)(a) The schedule of reasonable maximum rates | ||||||
| 26 | established pursuant
to this Section may be modified by the | ||||||
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| 1 | Secretary from time to time pursuant
to rules adopted in | ||||||
| 2 | accordance with the Illinois Administrative Procedure Act.
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| 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:
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| 8 | (i) reject the petition if it fails to demonstrate | ||||||
| 9 | reasonable cause to
believe that an adjustment is | ||||||
| 10 | necessary; or
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| 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.
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| 14 | (c) No petition may be filed pursuant to subparagraph | ||||||
| 15 | (a) of paragraph
(2) of subsection (B) unless:
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| 16 | (i) at least nine months have expired since the | ||||||
| 17 | last promulgation of
schedules of maximum rates; and
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| 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.
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| 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.
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| 26 | (Source: P.A. 100-22, eff. 1-1-18.)
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