Bill Text: IL SB3412 | 2023-2024 | 103rd General Assembly | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Creates the Uniform Money Transmission Modernization Act. Provides that the provisions supersede the Transmitters of Money Act. Provides that a person may not engage in the business of money transmission or advertise, solicit, or hold oneself out as providing money transmission unless the person is licensed under the Act. Sets forth provisions concerning the purpose of the Act; definitions; money transmission licenses; license application; license renewal; acquisition of control and change of key individuals; reporting and records; authorized delegates of a licensee; timely transmission, refunds, and disclosures; confidentiality of records; required reports; prudential standards; and enforcement. Makes conforming changes in the Freedom of Information Act and the State Finance Act. Provides that the Transmitters of Money Act is repealed on January 1, 2026. Makes other changes. Effective immediately, except that the changes to the Transmitters of Money Act take effect January 1, 2026.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Passed) 2024-08-09 - Public Act . . . . . . . . . 103-0991 [SB3412 Detail]

Download: Illinois-2023-SB3412-Engrossed.html

SB3412 EngrossedLRB103 35570 RPS 65642 b
1 AN ACT concerning regulation.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4
ARTICLE I. Title & Purpose
5 Section 1-1. Short title. This Act may be cited as the
6Uniform Money Transmission Modernization Act.
7 Section 1-2. Purpose.
8 (a) This Act is designed to replace existing State money
9transmission laws currently codified under the Transmitters of
10Money Act. It is the intent of the General Assembly that the
11provisions of this Act accomplish the following:
12 (1) ensure states can coordinate in all areas of
13 regulation, licensing, and supervision to eliminate
14 unnecessary regulatory burden and more effectively use
15 regulator resources;
16 (2) protect the public from financial crime;
17 (3) standardize the types of activities that are
18 subject to licensing or otherwise exempt from licensing;
19 and
20 (4) modernize safety and soundness requirements to
21 ensure customer funds are protected in an environment that
22 supports innovative and competitive business practices.

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1 (b) The provisions of this Act shall be liberally
2construed to effectuate its purposes.
3
ARTICLE II. Definitions
4 Section 2-1. Definitions. As used in this Act:
5 "Acting in concert" means persons knowingly acting
6together with a common goal of jointly acquiring control of a
7licensee whether or not pursuant to an express agreement.
8 "Authorized delegate" means a person a licensee designates
9to engage in money transmission on behalf of the licensee.
10 "Average daily money transmission liability" means the
11amount of the licensee's outstanding money transmission
12obligations in this State at the end of each day in a given
13period of time, added together, and divided by the total
14number of days in the given period of time. For purposes of
15calculating average daily money transmission liability under
16this Act for any licensee required to do so, the given period
17of time shall be the quarters ending March 31, June 30,
18September 30, and December 31.
19 "Bank Secrecy Act" means the Bank Secrecy Act, 31 U.S.C.
205311, et seq. and its implementing rules and regulations, as
21amended and recodified from time to time.
22 "Bill payment service" means the business of transmitting
23money on behalf of an Illinois person for the purposes of
24paying the person's bills.

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1 "Closed loop stored value" means stored value that is
2redeemable by the issuer only for goods or services provided
3by the issuer or its affiliate or franchisees of the issuer or
4its affiliate, except to the extent required by applicable law
5to be redeemable in cash for its cash value.
6 "Control" means:
7 (1) the power to vote, directly or indirectly, at
8 least 25% of the outstanding voting shares or voting
9 interests of a licensee or person in control of a
10 licensee;
11 (2) the power to elect or appoint a majority of key
12 individuals or executive officers, managers, directors,
13 trustees, or other persons exercising managerial authority
14 of a person in control of a licensee; or
15 (3) the power to exercise, directly or indirectly, a
16 controlling influence over the management or policies of a
17 licensee or person in control of a licensee.
18 For purposes of determining the percentage of a person
19controlled by any other person, the person's interest shall be
20aggregated with the interest of any other immediate family
21member, including the person's spouse, parents, children,
22siblings, mothers-in-law and fathers-in-law, sons-in-law and
23daughters-in-law, brothers-in-law and sisters-in-law, and any
24other person who shares such person's home.
25 "Department" means the Department of Financial and
26Professional Regulation.

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1 "Division" means the Division of Financial Institutions of
2the Department of Financial and Professional Regulation.
3 "Eligible rating" means a credit rating of any of the 3
4highest rating categories provided by an eligible rating
5service, whereby each category may include rating category
6modifiers such as "plus" or "minus" for S&P, or the equivalent
7for any other eligible rating service. For purposes of this
8definition, long-term credit ratings are deemed eligible if
9the rating is equal to "A-" or higher by S&P, or the equivalent
10from any other eligible rating service; short-term credit
11ratings are deemed eligible if the rating is equal to or higher
12than "A-2" or "SP-2" by S&P, or the equivalent from any other
13eligible rating service; if ratings differ among eligible
14rating services, the highest rating shall apply when
15determining whether a security bears an eligible rating.
16 "Eligible rating service" means any nationally recognized
17statistical rating organization as defined by the U.S.
18Securities and Exchange Commission, and any other organization
19designated by the Secretary by rule or order.
20 "Federally insured depository financial institution" means
21a bank, credit union, savings and loan association, trust
22company, savings association, savings bank, industrial bank,
23or industrial loan company organized under the laws of the
24United States or any state of the United States, if the bank,
25credit union, savings and loan association, trust company,
26savings association, savings bank, industrial bank, or

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1industrial loan company has federally insured deposits.
2 "In this State" means at a physical location within this
3State for a transaction requested in person. For a transaction
4requested electronically or by phone, the provider of money
5transmission may determine if the person requesting the
6transaction is in this State by relying on other information
7provided by the person regarding the location of the
8individual's residential address or a business entity's
9principal place of business or other physical address
10location, and any records associated with the person that the
11provider of money transmission may have that indicate such
12location, including, but not limited to, an address associated
13with an account.
14 "Individual" means a natural person.
15 "Key individual" means any individual ultimately
16responsible for establishing or directing policies and
17procedures of the licensee, such as an executive officer,
18manager, director, or trustee.
19 "Licensee" means a person licensed under this Act.
20 "Material litigation" means litigation, that according to
21United States generally accepted accounting principles, is
22significant to a person's financial health and would be
23required to be disclosed in the person's annual audited
24financial statements, report to shareholders, or similar
25records.
26 "Money" means a medium of exchange that is authorized or

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1adopted by the United States or a foreign government as part of
2its currency and that is customarily used and accepted as a
3medium of exchange in the country of issuance. "Money"
4includes a monetary unit of account established by an
5intergovernmental organization or by agreement between 2 or
6more governments.
7 "Monetary value" means a medium of exchange, whether or
8not redeemable in money unless excluded by rule by the
9Secretary.
10 "Money transmission" means any of the following:
11 (1) Selling or issuing payment instruments to a person
12 located in this State.
13 (2) Selling or issuing stored value to a person
14 located in this State.
15 (3) Receiving money for transmission from a person
16 located in this State or transmitting money in this State.
17 "Money transmission" includes bill payment services and
18payroll processing services. "Money transmission" does not
19include the provision solely of online or telecommunications
20services or network access.
21 "MSB accredited state agency" means a state agency that is
22accredited by the Conference of State Bank Supervisors and
23Money Transmitter Regulators Association for money
24transmission licensing and supervision.
25 "Multistate licensing process" means any agreement entered
26into by and among state regulators relating to coordinated

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1processing of applications for money transmission licenses,
2applications for the acquisition of control of a licensee,
3control determinations, or notice and information requirements
4for a change of key individuals.
5 "NMLS" means the Nationwide Multistate Licensing System
6and Registry developed by the Conference of State Bank
7Supervisors and the American Association of Residential
8Mortgage Regulators and owned and operated by the State
9Regulatory Registry, LLC, or any successor or affiliated
10entity, for the licensing and registration of persons in
11financial services industries.
12 "Outstanding money transmission obligations" means any of
13the following:
14 (1) Any payment instrument or stored value issued or
15 sold by the licensee to a person located in the United
16 States or reported as sold by an authorized delegate of
17 the licensee to a person that is located in the United
18 States that has not yet been paid or refunded by or for the
19 licensee or escheated in accordance with applicable
20 abandoned property laws; or
21 (2) Any money received for transmission by the
22 licensee or an authorized delegate in the United States
23 from a person located in the United States that has not
24 been received by the payee, refunded to the sender, or
25 escheated in accordance with applicable abandoned property
26 laws.

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1 For purposes of this definition, "in the United States"
2includes, to the extent applicable, a person in any state,
3territory, or possession of the United States; the District of
4Columbia; the Commonwealth of Puerto Rico; or a U.S. military
5installation that is located in a foreign country.
6 "Passive investor" means a person that:
7 (1) does not have the power to elect a majority of key
8 individuals or executive officers, managers, directors,
9 trustees, or other persons exercising managerial authority
10 of a person in control of a licensee;
11 (2) is not employed by and does not have any
12 managerial duties of the licensee or person in control of
13 a licensee;
14 (3) does not have the power to exercise, directly or
15 indirectly, a controlling influence over the management or
16 policies of a licensee or person in control of a licensee;
17 and
18 (4) either:
19 (A) attests to items (1), (2), and (3), in a form
20 and in a medium prescribed by the Secretary; or
21 (B)commits to the passivity characteristics of
22 items (1), (2), and (3), in a written document.
23 "Payment instrument" means a written or electronic check,
24draft, money order, traveler's check, or other written or
25electronic instrument for the transmission or payment of money
26or monetary value, whether or not negotiable. "Payment

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1instrument" does not include stored value or any instrument
2that (1) is redeemable by the issuer only for goods or services
3provided by the issuer or its affiliate or franchisees of the
4issuer or its affiliate, except to the extent required by
5applicable law to be redeemable in cash for its cash value; or
6(2) not sold to the public but issued and distributed as part
7of a loyalty, rewards, or promotional program.
8 "Payroll processing services" means receiving money for
9transmission pursuant to a contract with a person to deliver
10wages or salaries, make payment of payroll taxes to State and
11federal agencies, make payments relating to employee benefit
12plans, or make distributions of other authorized deductions
13from wages or salaries. "Payroll processing services" does not
14include an employer performing payroll processing services on
15its own behalf or on behalf of its affiliate.
16 "Person" means any individual, general partnership,
17limited partnership, limited liability company, corporation,
18trust, association, joint stock corporation, or other
19corporate entity identified by the Secretary.
20 "Receiving money for transmission" or "money received for
21transmission" means receiving money or monetary value in the
22United States for transmission within or outside the United
23States by electronic or other means.
24 "Secretary" means the Secretary of Financial and
25Professional Regulation, the acting Secretary, or a person
26authorized by the Secretary.

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1 "Stored value" means monetary value representing a claim
2against the issuer evidenced by an electronic or digital
3record, and that is intended and accepted for use as a means of
4redemption for money or monetary value, or payment for goods
5or services. "Stored value" includes, but is not limited to,
6"prepaid access" as defined by 31 CFR Section 1010.100, as
7amended or recodified from time to time. Notwithstanding the
8foregoing, "stored value" does not include a payment
9instrument or closed loop stored value, or stored value not
10sold to the public but issued and distributed as part of a
11loyalty, rewards, or promotional program.
12 "Tangible net worth" means the aggregate assets of a
13licensee excluding all intangible assets, less liabilities, as
14determined in accordance with United States generally accepted
15accounting principles.
16
ARTICLE III. Exemptions
17 Section 3-1. Exemptions. This Act does not apply to:
18 (1) An operator of a payment system to the extent that it
19provides processing, clearing, or settlement services, between
20or among persons exempted by this Section or licensees, in
21connection with wire transfers, credit card transactions,
22debit card transactions, stored value transactions, automated
23clearinghouse transfers, or similar funds transfers.
24 (2) A person appointed as an agent of a payee to collect

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1and process a payment from a payor to the payee for goods or
2services, other than money transmission itself, provided to
3the payor by the payee, if:
4 (A) there exists a written agreement between the payee
5 and the agent directing the agent to collect and process
6 payments from payors on the payee's behalf; and
7 (B) payment for the goods and services is treated as
8 received by the payee upon receipt by the agent so that the
9 payor's obligation is extinguished and there is no risk of
10 loss to the payor if the agent fails to remit the funds to
11 the payee.
12 (3) A person that acts as an intermediary by processing
13payments between an entity that has directly incurred an
14outstanding money transmission obligation to a sender, and the
15sender's designated recipient, if the entity:
16 (A) is properly licensed or exempt from licensing
17 requirements under this Act;
18 (B) provides a receipt, electronic record, or other
19 written confirmation to the sender identifying the entity
20 as the provider of money transmission in the transaction;
21 and
22 (C) bears sole responsibility to satisfy the
23 outstanding money transmission obligation to the sender,
24 including the obligation to make the sender whole in
25 connection with any failure to transmit the funds to the
26 sender's designated recipient.

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1 (4) The United States or a department, agency, or
2instrumentality thereof, or its agent.
3 (5) Money transmission by the United States Postal Service
4or by an agent of the United States Postal Service.
5 (6) A State, county, city, or any other governmental
6agency or governmental subdivision or instrumentality of a
7State, or its agent.
8 (7) A federally insured depository financial institution,
9bank holding company, office of an international banking
10corporation, foreign bank that establishes a federal branch
11pursuant to the International Bank Act, 12 U.S.C. 3102, as
12amended or recodified from time to time, corporation organized
13pursuant to the Bank Service Corporation Act, 12 U.S.C.
14Sections 1861 through 1867, as amended or recodified from time
15to time, or corporation organized under the Edge Act, 12
16U.S.C. Sections 611 through 633, as amended or recodified from
17time to time, under the laws of a state or the United States.
18 (8) Electronic funds transfer of governmental benefits for
19a federal, State, county, or governmental agency by a
20contractor on behalf of the United States or a department,
21agency, or instrumentality thereof, or on behalf of a State or
22governmental subdivision, agency, or instrumentality thereof.
23 (9) A board of trade designated as a contract market under
24the federal Commodity Exchange Act, 7 U.S.C. Sections 1
25through 25, as amended or recodified from time to time, or a
26person that, in the ordinary course of business, provides

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1clearance and settlement services for a board of trade to the
2extent of its operation as or for such a board.
3 (10) A registered futures commission merchant under the
4federal commodities laws to the extent of its operation as
5such a merchant.
6 (11) A person registered as a securities broker-dealer
7under federal or State securities laws to the extent of its
8operation as such a broker-dealer.
9 (12) An individual employed by a licensee, authorized
10delegate, or any person exempted from the licensing
11requirements of the Act when acting within the scope of
12employment and under the supervision of the licensee,
13authorized delegate, or exempted person as an employee and not
14as an independent contractor.
15 (13) A person expressly appointed as a third-party service
16provider to or agent of an entity exempt under paragraph (7) or
17(16), solely to the extent that:
18 (A) such service provider or agent is engaging in
19 money transmission on behalf of and pursuant to a written
20 agreement with the exempt entity that sets forth the
21 specific functions that the service provider or agent is
22 to perform; and
23 (B) the exempt entity assumes all risk of loss and all
24 legal responsibility for satisfying the outstanding money
25 transmission obligations owed to purchasers and holders of
26 the outstanding money transmission obligations upon

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1 receipt of the purchaser's or holder's money or monetary
2 value by the service provider or agent.
3 (14) Any other person, transaction, or class of persons or
4transactions exempted by rule or any other person or
5transaction exempted by the Secretary's order on a finding
6that the licensing of the person is not necessary to achieve
7the purposes of this Act.
8 (15) Currency exchanges licensed under the Currency
9Exchange Act to the extent of its operation as such a currency
10exchange.
11 (16) An insured depository credit union organized under
12the laws of the United States or any state of the United States
13with deposits insured by an insurer approved by the credit
14union's primary regulator.
15 Section 3-2. Authority to require demonstration of
16exemption. The Secretary may require that any person or entity
17claiming to be exempt from licensing pursuant to Section 3-1
18provide information and documentation to the Secretary
19demonstrating that it qualifies for any claimed exemption. The
20burden of proving the applicability of an exemption is upon
21the person claiming the exclusion or exception.
22
ARTICLE IV. Implementation, Confidentiality, Supervision &
23
Relationship to Federal Law

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1 Section 4-1. Implementation.
2 (a) In order to carry out the purposes of this Act, the
3Secretary may, subject to the provisions of subsections (a)
4and (b) of Section 4-2:
5 (1) enter into agreements or relationships with other
6 government officials or federal and State regulatory
7 agencies and regulatory associations in order to improve
8 efficiencies and reduce regulatory burden by standardizing
9 methods or procedures, and sharing resources, records or
10 related information obtained under this Act;
11 (2) use, hire, contract, or employ analytical systems,
12 methods, or software to examine or investigate any person
13 subject to this Act.
14 (3) accept, from other state or federal government
15 agencies or officials, licensing, examination, or
16 investigation reports made by such other state or federal
17 government agencies or officials; and
18 (4) accept audit reports made by an independent
19 certified public accountant or other qualified third-party
20 auditor for an applicant or licensee and incorporate the
21 audit report in any report of examination or
22 investigation.
23 (b) The Department shall have the broad administrative
24authority to administer, interpret and enforce this Act, and
25adopt rules or regulations implementing this Act and to
26recover the cost of administering and enforcing this Act by

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1imposing and collecting proportionate and equitable fees and
2costs associated with applications, examinations,
3investigations, and other actions required to achieve the
4purpose of this Act. The Department's rulemaking authority
5shall include, but not be limited to:
6 (1) such rules and regulations in connection with the
7 activities of licensees as may be necessary and
8 appropriate for the protection of consumers in this State;
9 (2) such rules and regulations as may be necessary and
10 appropriate to define improper or fraudulent business
11 practices in connection with the activities of licensees;
12 (3) such rules and regulations as may define the terms
13 used in this Act and as may be necessary and appropriate to
14 interpret and implement the provisions of this Act;
15 (4) such rules and regulations as may be necessary for
16 the implementation or enforcement of this Act; and
17 (5) such rules and regulations establishing fees the
18 Secretary deems necessary to cover the cost of
19 administration of this Act.
20 Section 4-2. Confidentiality.
21 (a) Except as otherwise provided in this Section, all
22information or reports obtained by the Secretary from an
23applicant, licensee, or authorized delegate, and all
24information contained in or related to an examination,
25investigation, operating report, or condition report prepared

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1by, on behalf of, or for the use of the Secretary, or financial
2statements, balance sheets, or authorized delegate
3information, are confidential and are not subject to
4disclosure under the Freedom of Information Act.
5 (b) The Secretary may disclose information not otherwise
6subject to disclosure under subsection (a) to representatives
7of State or federal agencies who promise in a record that they
8will maintain the confidentiality of the information or where
9the Secretary finds that the release is reasonably necessary
10for the protection and interest of the public.
11 (c) This Section does not prohibit the Secretary from
12disclosing to the public a list of all licensees or the
13aggregated financial or transactional data concerning those
14licensees.
15 (d) Information contained in the records of the Department
16that is not confidential and may be made available to the
17public either on the Department's website, upon receipt by the
18Department of a written request, or in NMLS shall include:
19 (1) the name, business address, telephone number, and
20 unique identifier of a licensee;
21 (2) the business address of a licensee's registered
22 agent for service;
23 (3) the name, business address, and telephone number
24 of all authorized delegates;
25 (4) the terms of or a copy of any bond filed by a
26 licensee, if confidential information, including, but not

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1 limited to, prices and fees, for such bond is redacted;
2 (5) copies of any final orders of the Department
3 relating to any violation of this Act or regulations
4 implementing this Act; and
5 (e) Imposition of an administrative action under this Act
6is not confidential.
7 (f) The Secretary, in his or her sole discretion, may
8disclose otherwise confidential information when he or she
9determines disclosure is in the public interest.
10 Section 4-3. Supervision.
11 (a) The Secretary may conduct an examination or
12investigation of a licensee or authorized delegate or
13otherwise take independent action authorized by this Act or by
14a rule adopted or order issued under this Act as reasonably
15necessary or appropriate to administer and enforce this Act,
16rules and regulations implementing this Act, and other
17applicable law, including the Bank Secrecy Act and the USA
18PATRIOT ACT. The Secretary may:
19 (1) conduct an examination either on-site or off-site
20 as the Secretary may reasonably require;
21 (2) conduct an examination in conjunction with an
22 examination conducted by representatives of other state
23 agencies or agencies of another state or of the federal
24 government;
25 (3) accept the examination report of another state

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1 agency or an agency of another state or of the federal
2 government, or a report prepared by an independent
3 accounting firm, which on being accepted is considered for
4 all purposes as an official report of the Secretary; and
5 (4) summon and examine under oath a key individual or
6 employee of a licensee or authorized delegate and require
7 the person to produce records regarding any matter related
8 to the condition and business of the licensee or
9 authorized delegate.
10 (b) A licensee or authorized delegate shall provide, and
11the Secretary shall have full and complete access to, all
12records the Secretary may reasonably require to conduct a
13complete examination. The records must be provided at the
14location and in the format specified by the Secretary,
15however, the Secretary may use multistate record production
16standards and examination procedures when such standards will
17reasonably achieve the requirements of this subsection.
18 (c) Unless otherwise directed by the Secretary, a licensee
19shall pay all costs reasonably incurred in connection with an
20examination of the licensee or the licensee's authorized
21delegates.
22 Section 4-4. Networked supervision.
23 (a) To efficiently and effectively administer and enforce
24this Act and to minimize regulatory burden, the Secretary is
25authorized and encouraged to participate in multistate

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1supervisory processes established between states and
2coordinated through the Conference of State Bank Supervisors,
3Money Transmitter Regulators Association, and affiliates and
4successors thereof for all licensees that hold licenses in
5this State and other states. As a participant in multistate
6supervision, the Secretary may:
7 (1) cooperate, coordinate, and share information with
8 other state and federal regulators in accordance with
9 Section 4-2;
10 (2) enter into written cooperation, coordination, or
11 information-sharing contracts or agreements with
12 organizations the membership of which is made up of state
13 or federal governmental agencies; and
14 (3) cooperate, coordinate, and share information with
15 organizations the membership of which is made up of state
16 or federal governmental agencies, if the organizations
17 agree in writing to maintain the confidentiality and
18 security of the shared information in accordance with
19 Section 4-2.
20 (b) The Secretary may not waive, and nothing in this
21Section constitutes a waiver of, the Secretary's authority to
22conduct an examination or investigation or otherwise take
23independent action authorized by this Act or a rule adopted or
24order issued under this Act to enforce compliance with
25applicable state or federal law.
26 (c) A joint examination or investigation, or acceptance of

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1an examination or investigation report, does not waive an
2examination assessment provided for in this Act.
3 Section 4-5. Relationship to federal law.
4 (a) If state money transmission jurisdiction is
5conditioned on a federal law, any inconsistencies between a
6provision of this Act and the federal law governing money
7transmission shall be governed by the applicable federal law
8to the extent of the inconsistency.
9 (b) In the event of any inconsistencies between this Act
10and a federal law that governs pursuant to subsection (a), the
11Secretary may provide interpretive rule or guidance that:
12 (1) identifies the inconsistency; and
13 (2) identifies the appropriate means of compliance
14 with federal law.
15
ARTICLE V. Money Transmission Licenses
16 Section 5-1. License required.
17 (a) A person may not engage in the business of money
18transmission or advertise, solicit, or hold oneself out as
19providing money transmission unless the person is licensed
20under this Act.
21 (b) Subsection (a) does not apply to:
22 (1) A person who is an authorized delegate of a person
23 licensed under this Act acting within the scope of

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1 authority conferred by a written contract with the
2 licensee; or
3 (2) A person who is exempt pursuant to Section 3-1 and
4 does not engage in money transmission outside the scope of
5 such exemption.
6 (c) A license issued under Section 5-5 is not transferable
7or assignable.
8 Section 5-2. Consistent State licensing.
9 (a) To establish consistent licensing between this State
10and other states, the Secretary is authorized and encouraged
11to:
12 (1) implement all licensing provisions of this Act in
13 a manner that is consistent with other states that have
14 adopted this Act or multistate licensing processes; and
15 (2) participate in nationwide protocols for licensing
16 cooperation and coordination among state regulators
17 provided that such protocols are consistent with this Act.
18 (b) In order to fulfill the purposes of this Act, the
19Secretary is authorized and encouraged to establish
20relationships or contracts with NMLS or other entities
21designated by NMLS to enable the Secretary to:
22 (1) collect and maintain records;
23 (2) coordinate multistate licensing processes and
24 supervision processes;
25 (3) process fees; and

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1 (4) facilitate communication between this State and
2 licensees or other persons subject to this Act.
3 (c) The Secretary is authorized and encouraged to use NMLS
4for all aspects of licensing in accordance with this Act,
5including, but not limited to, license applications,
6applications for acquisitions of control, surety bonds,
7reporting, criminal history background checks, credit checks,
8fee processing, and examinations.
9 (d) The Secretary is authorized and encouraged to use NMLS
10forms, processes, and functionalities in accordance with this
11Act. If NMLS does not provide functionality, forms, or
12processes for a provision of this Act, the Secretary is
13authorized and encouraged to strive to implement the
14requirements in a manner that facilitates uniformity with
15respect to licensing, supervision, reporting, and regulation
16of licensees which are licensed in multiple jurisdictions.
17 (e) For the purpose of participating in NMLS, the
18Secretary is authorized to waive or modify, in whole or in
19part, by rule, regulation or order, any or all of the
20requirements and to establish new requirements as reasonably
21necessary to participate in NMLS.
22 Section 5-3. Application for license.
23 (a) Applicants for a license shall apply in a form and in a
24medium as prescribed by the Secretary. Each such form shall
25contain content as set forth by rule, regulation, instruction

SB3412 Engrossed- 24 -LRB103 35570 RPS 65642 b
1or procedure of the Secretary and may be changed or updated by
2the Secretary in accordance with applicable law in order to
3carry out the purposes of this Act and maintain consistency
4with NMLS licensing standards and practices. The application
5must state or contain, as applicable:
6 (1) the legal name and residential and business
7 addresses of the applicant and any fictitious or trade
8 name used by the applicant in conducting its business;
9 (2) a list of any criminal convictions of the
10 applicant and any material litigation in which the
11 applicant has been involved in the 10-year period
12 preceding the submission of the application;
13 (3) a description of any money transmission previously
14 provided by the applicant and the money transmission that
15 the applicant seeks to provide in this State;
16 (4) a list of the applicant's proposed authorized
17 delegates and the locations in this State where the
18 applicant and its authorized delegates propose to engage
19 in money transmission;
20 (5) a list of other states in which the applicant is
21 licensed to engage in money transmission and any license
22 revocations, suspensions, or other disciplinary action
23 taken against the applicant in another state;
24 (6) information concerning any bankruptcy or
25 receivership proceedings affecting the licensee or a
26 person in control of a licensee;

SB3412 Engrossed- 25 -LRB103 35570 RPS 65642 b
1 (7) a sample form of contract for authorized
2 delegates, if applicable;
3 (8) a sample form of payment instrument or stored
4 value, as applicable;
5 (9) the name and address of any federally insured
6 depository financial institution through which the
7 applicant plans to conduct money transmission; and
8 (10) any other information the Secretary or NMLS
9 reasonably requires with respect to the applicant.
10 (b) If an applicant is a corporation, limited liability
11company, partnership, or other legal entity, the applicant
12shall also provide:
13 (1) the date of the applicant's incorporation or
14 formation and State or country of incorporation or
15 formation;
16 (2) if applicable, a certificate of good standing from
17 the State or country in which the applicant is
18 incorporated or formed;
19 (3) a brief description of the structure or
20 organization of the applicant, including any parents or
21 subsidiaries of the applicant, and whether any parents or
22 subsidiaries are publicly traded;
23 (4) the legal name, any fictitious or trade name, all
24 business and residential addresses, and the employment, as
25 applicable, in the 10-year period preceding the submission
26 of the application of each key individual and person in

SB3412 Engrossed- 26 -LRB103 35570 RPS 65642 b
1 control of the applicant;
2 (5) a list of any criminal convictions and material
3 litigation in which a person in control of the applicant
4 that is not an individual has been involved in the 10-year
5 period preceding the submission of the application;
6 (6) a copy of audited financial statements of the
7 applicant for the most recent fiscal year and for the
8 2-year period preceding the submission of the application
9 or, if determined to be acceptable to the Secretary;
10 (7) a certified copy of unaudited financial statements
11 of the applicant for the most recent fiscal quarter;
12 (8) if the applicant is a publicly traded corporation,
13 a copy of the most recent report filed with the United
14 States Securities and Exchange Commission under Section 13
15 of the federal Securities Exchange Act of 1934, 15 U.S.C.
16 78m, as amended or recodified from time to time;
17 (9) if the applicant is a wholly owned subsidiary of:
18 (A) a corporation publicly traded in the United
19 States, a copy of audited financial statements for the
20 parent corporation for the most recent fiscal year or
21 a copy of the parent corporation's most recent report
22 filed under Section 13 of the federal Securities
23 Exchange Act of 1934, 15 U.S.C. 78m, as amended or
24 recodified from time to time; or
25 (B) a corporation publicly traded outside the
26 United States, a copy of similar documentation filed

SB3412 Engrossed- 27 -LRB103 35570 RPS 65642 b
1 with the regulator of the parent corporation's
2 domicile outside the United States;
3 (10) the name and address of the applicant's
4 registered agent in this State; and
5 (11) any other information the Secretary reasonably
6 requires with respect to the applicant.
7 A nonrefundable application fee must accompany an
8application for a license under this Section in accordance
9with 38 Ill. Adm. Code 205.35, as amended or recodified from
10time to time.
11 (c) The Secretary may waive one or more requirements of
12subsections (a) and (b) or permit an applicant to submit other
13information instead of the required information.
14 Section 5-4. Information requirements for certain
15individuals.
16 (a) Any individual in control of a licensee or applicant,
17any individual that seeks to acquire control of a licensee,
18and each key individual shall furnish to the Secretary through
19NMLS the following items:
20 (1) The individual's fingerprints for submission to
21 the Federal Bureau of Investigation and the Secretary for
22 purposes of a national criminal history background check
23 unless the person currently resides outside of the United
24 States and has resided outside of the United States for
25 the last 10 years.

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1 (2) Personal history and experience in a form and in a
2 medium prescribed by the Secretary, to obtain the
3 following:
4 (A) an independent credit report from a consumer
5 reporting agency unless the individual does not have a
6 social security number, in which case, this
7 requirement shall be waived;
8 (B) information related to any criminal
9 convictions or pending charges; and
10 (C) information related to any regulatory or
11 administrative action and any civil litigation
12 involving claims of fraud, misrepresentation,
13 conversion, mismanagement of funds, breach of
14 fiduciary duty, or breach of contract.
15 (b) If the individual has resided outside of the United
16States at any time in the last 10 years, the individual shall
17also provide an investigative background report prepared by an
18independent search firm that meets the following requirements:
19 (1) At a minimum, the search firm shall:
20 (A) demonstrate that it has sufficient knowledge,
21 resources, and employs accepted and reasonable
22 methodologies to conduct the research of the
23 background report; and
24 (B) not be affiliated with or have an interest
25 with the individual it is researching.
26 (2) At a minimum, the investigative background report

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1 shall be written in the English language and shall contain
2 the following:
3 (A) if available in the individual's current
4 jurisdiction of residency, a comprehensive credit
5 report, or any equivalent information obtained or
6 generated by the independent search firm to accomplish
7 such report, including a search of the court data in
8 the countries, provinces, states, cities, towns, and
9 contiguous areas where the individual resided and
10 worked;
11 (B) criminal records information for the past 10
12 years, including, but not limited to, felonies,
13 misdemeanors, or similar convictions for violations of
14 law in the countries, provinces, states, cities,
15 towns, and contiguous areas where the individual
16 resided and worked;
17 (C) employment history;
18 (D) media history, including an electronic search
19 of national and local publications, wire services, and
20 business applications; and
21 (E) financial services-related regulatory history,
22 including, but not limited to, money transmission,
23 securities, banking, insurance, and mortgage related
24 industries.
25 Section 5-5. Issuance of license.

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1 (a) When an application for an original license under this
2Act appears to include all the items and addresses of all of
3the matters that are required, the application is complete and
4the Secretary shall promptly notify the applicant in a record
5of the date on which the application is determined to be
6complete, and:
7 (1) unless extended by the Secretary pursuant to the
8 Secretary's discretion, the Secretary shall approve or
9 deny the application within 120 days after the completion
10 date; or
11 (2) if the application is not approved or denied
12 within 120 days after the completion date or any extension
13 thereof:
14 (A) the application is approved; and
15 (B) the license takes effect as of the first
16 business day after expiration of the 120-day period.
17 (b) A determination by the Secretary that an application
18is complete and is accepted for processing means only that the
19application, on its face, appears to include all of the items,
20including the Criminal Background Check response from the FBI,
21and address all of the matters that are required, and is not an
22assessment of the substance of the application or of the
23sufficiency of the information provided.
24 (c) When an application is filed and considered complete
25under this Section, the Secretary shall investigate the
26applicant's financial condition and responsibility, financial

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1and business experience, character, and general fitness. The
2Secretary may conduct an on-site investigation of the
3applicant, the reasonable cost of which the applicant must
4pay. The Secretary shall issue a license to an applicant under
5this Section if the Secretary finds that all of the following
6conditions have been fulfilled:
7 (1) the applicant has complied with Sections 5-3 and
8 5-4; and
9 (2) the financial condition and responsibility,
10 financial and business experience, competence, character,
11 and general fitness of the applicant and the competence,
12 experience, character, and general fitness of the key
13 individuals and persons in control of the applicant
14 indicate that it is in the interest of the public to permit
15 the applicant to engage in money transmission.
16 (d) If an applicant avails itself or is otherwise subject
17to a multistate licensing process:
18 (1) the Secretary is authorized and encouraged to
19 accept the investigation results of a lead investigative
20 state for the purpose of subsection (c) if the lead
21 investigative state has sufficient staffing, expertise,
22 and minimum standards; or
23 (2) if Illinois is a lead investigative state, the
24 Secretary is authorized and encouraged to investigate the
25 applicant pursuant to subsection (c) and the timeframes
26 established by agreement through the multistate licensing

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1 process, however, in no case shall such timeframe be
2 noncompliant with the application period in paragraph (1)
3 of subsection (a).
4 (e) The Secretary shall issue a formal written notice of
5the denial of a license application within 30 days after the
6decision to deny the application. The Secretary shall set
7forth the specific reasons for the denial of the application
8in the notice of denial and serve the applicant, either
9personally or by certified mail. Service by certified mail
10shall be deemed completed when the notice is deposited into
11the U.S. Mail. An applicant whose application is denied by the
12Secretary under this Section may submit a written request for
13a hearing that shall include the particular reasons why the
14applicant believes that the decision to deny the application
15was incorrect, within 10 days after service of the notice of
16the denial. If an applicant submits a timely request for a
17hearing, the Secretary shall schedule a hearing after the
18request for a hearing unless otherwise agreed to by the
19parties. The Secretary shall conduct hearings pursuant to this
20Section and in accordance with 38 Ill. Adm. Code 100, as
21amended or recodified from time to time.
22 (f) The initial license term shall begin on the day that
23the application is approved. The license shall expire on
24December 31 of the year in which the license term began, unless
25the initial license date is between November 1 and December
2631, in which instance the initial license term shall run

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1through December 31 of the following year.
2 Section 5-6. Renewal of license.
3 (a) A license under this Act shall be renewed annually.
4 (b) An annual renewal fee in accordance with 38 Ill. Adm.
5Code 205.35 as amended or recodified from time to time shall be
6paid to the Department. The renewal term shall be for a period
7of one year and shall begin on January 1 of each year after the
8initial license term and shall expire on December 31 of the
9year the renewal term begins.
10 (c) A licensee shall submit a renewal report, in a form and
11in a medium prescribed by the Secretary by December 1 of each
12year. The form requires any information deemed necessary by
13the Secretary to review a renewal application. At a minimum,
14the renewal report must state or contain a description of each
15material change in information submitted by the licensee in
16its original license application which has not been reported
17to the Secretary and a statement of the dollar amount and
18number of money transmissions and payment instruments sold,
19issued, exchanged, or transmitted in this State by the
20licensee and its authorized delegate for the past 4 completed
21calendar quarters.
22 (d) The Secretary, in his or her discretion, may grant an
23extension of the renewal date.
24 (e) The Secretary is authorized and encouraged to use NMLS
25to process license renewals if such functionality is

SB3412 Engrossed- 34 -LRB103 35570 RPS 65642 b
1consistent with this Section.
2 (f) The Secretary shall issue a formal written notice of
3the denial of renewal within 30 days after the decision to deny
4the renewal. The Secretary shall set forth the specific
5reasons for denying the renewal in the notice of denial and
6serve the licensee, either personally or by certified mail.
7Service by certified mail shall be deemed completed when the
8notice is deposited into the U.S. Mail. A licensee whose
9renewal is denied by the Secretary under this Section may
10submit a written request for a hearing that shall include the
11particular reasons why the licensee believes that the decision
12to deny the renewal was incorrect within 10 days after service
13of the notice of the denial. If a licensee submits a timely
14request for a hearing, the Secretary shall schedule a hearing
15unless otherwise agreed to by the parties. The Secretary shall
16conduct hearings pursuant to this Section and in accordance
17with 38 Ill. Adm. Code 100, as amended or recodified from time
18to time. The expiring license shall be deemed to continue in
19force until 10 days after the service of the notice of denial
20or, if a timely hearing is requested during that period, until
21a final order is entered pursuant to a hearing.
22 Section 5-7. Maintenance of license.
23 (a) If a licensee does not continue to meet the
24qualifications or satisfy the requirements that apply to an
25applicant for a new money transmission license, the Secretary

SB3412 Engrossed- 35 -LRB103 35570 RPS 65642 b
1may suspend or revoke the licensee's license in accordance
2with the procedures established by this Act or other
3applicable State law for such suspension or revocation.
4 (b) An applicant for a money transmission license must
5demonstrate that it meets or will meet, and a money
6transmission licensee must at all times meet, the requirements
7in Article X of this Act.
8 Section 5-8. Fees.
9 (a) The expenses of administering this Act, including
10investigations and examinations provided for in this Act,
11shall be borne by and assessed against entities regulated by
12this Act. The Department may establish fees by rule, including
13in the following categories:
14 (1) investigation of licensees and license applicant
15 fees;
16 (2) examination fees;
17 (3) contingent fees; and
18 (4) such other categories as may be required to
19 administer this Act.
20 (b) The Secretary shall charge and collect fees, which
21shall be nonrefundable unless otherwise indicated, in
22accordance with 38 Ill. Adm. Code 205.35.
23 (c) All fees currently assessed in accordance with 38 Ill.
24Adm. Code 205.35, as amended or recodified from time to time,
25shall remain in effect. Except for money required to be

SB3412 Engrossed- 36 -LRB103 35570 RPS 65642 b
1deposited into the TOMA Consumer Protection Fund pursuant to
2this Act, all moneys received by the Department shall be
3deposited into the Financial Institution Fund. Failure to pay
4any required fee by the due date shall subject the licensee to
5a penalty fee of $25 per day and disciplinary action.
6 Section 5-9. Liability of licensees. A licensee is liable
7for the payment of all moneys covered by payment instruments
8that it sells or issues in any form in this State through its
9authorized delegate and all moneys it receives itself or
10through its authorized delegate for transmission by any means
11whether or not any instrument is a negotiable instrument under
12the laws of this State.
13
ARTICLE VI. Acquisition of Control and Change of Key
14
Individual
15 Section 6-1. Acquisition of control.
16 (a) Any person, or group of persons acting in concert,
17seeking to acquire control of a licensee shall obtain the
18written approval of the Secretary before acquiring control. An
19individual is not deemed to acquire control of a licensee and
20is not subject to this Section when that individual becomes a
21key individual in the ordinary course of business.
22 (b) A person, or group of persons acting in concert,
23seeking to acquire control of a licensee shall, in cooperation

SB3412 Engrossed- 37 -LRB103 35570 RPS 65642 b
1with the licensee:
2 (1) submit an application in a form and in a medium
3 prescribed by the Secretary; and
4 (2) submit a nonrefundable fee of $1,000 with the
5 request for approval.
6 (c) Upon request, the Secretary may permit a licensee or
7the person, or group of persons acting in concert, to submit
8some or all information required by the Secretary pursuant to
9subsection (b) without using NMLS.
10 (d) The application required by subsection (b) shall
11include information required by Section 5-4 for any new key
12individuals that have not previously completed the
13requirements of Section 5-4 for a licensee.
14 (e) When an application for acquisition of control under
15this Section appears to include all the items and address all
16of the matters that are required, the application shall be
17considered complete and:
18 (1) unless extended by the Secretary pursuant to the
19 Secretary's discretion, the Secretary shall approve or
20 deny the application within 60 days after the completion
21 date; or
22 (2) if the application is not approved or denied
23 within 60 days after the completion date or any extension
24 thereof:
25 (A) the application is approved; and
26 (B) the person, or group of persons acting in

SB3412 Engrossed- 38 -LRB103 35570 RPS 65642 b
1 concert, are not prohibited from acquiring control.
2 (f) A determination by the Secretary that an application
3is complete and is accepted for processing means only that the
4application, on its face, appears to include all of the items
5and address all of the matters that are required, and is not an
6assessment of the substance of the application or of the
7sufficiency of the information provided.
8 (g) When an application is filed and considered complete
9under subsection (e), the Secretary shall investigate the
10financial condition and responsibility, financial and business
11experience, character, and general fitness of the person, or
12group of persons acting in concert, seeking to acquire
13control. The Secretary shall approve an acquisition of control
14pursuant to this Section if the Secretary finds that all of the
15following conditions have been fulfilled:
16 (1) The requirements of subsections (b) and (d) have
17 been met, as applicable; and
18 (2) the financial condition and responsibility,
19 financial and business experience, competence, character,
20 and general fitness of the person, or group of persons
21 acting in concert, seeking to acquire control; and the
22 competence, experience, character, and general fitness of
23 the key individuals and persons that would be in control
24 of the licensee after the acquisition of control indicate
25 that it is in the interest of the public to permit the
26 person, or group of persons acting in concert, to control

SB3412 Engrossed- 39 -LRB103 35570 RPS 65642 b
1 the licensee.
2 (h) If an applicant avails itself or is otherwise subject
3to a multistate licensing process:
4 (1) the Secretary is authorized and encouraged to
5 accept the investigation results of a lead investigative
6 state for the purpose of subsection (g) if the lead
7 investigative state has sufficient staffing, expertise,
8 and minimum standards; or
9 (2) if the Department is a lead investigative state,
10 the Secretary is authorized and encouraged to investigate
11 the applicant pursuant to subsection (g) and the
12 timeframes established by agreement through the multistate
13 licensing process.
14 (i) The Secretary shall issue a formal written notice of
15the denial of an application to acquire control within 30 days
16after the decision to deny the application. The Secretary
17shall set forth the specific reasons for the denial of the
18application in the notice of denial and serve the applicant,
19either personally or by certified mail. Service by certified
20mail shall be deemed completed when the notice is deposited
21into the U.S. mail. An applicant whose application is denied
22by the Secretary under this subsection (i) may submit a
23written request for hearing which shall include the particular
24reasons why the applicant believes that the decision to deny
25the application was incorrect, within 10 days after service of
26the notice of denial. If an applicant submits a timely request

SB3412 Engrossed- 40 -LRB103 35570 RPS 65642 b
1for a hearing, the Secretary shall schedule a hearing unless
2otherwise agreed to by the parties. The Secretary shall
3conduct hearings pursuant to this Section and in accordance
4with 38 Ill. Adm. Code 100, as amended or recodified from time
5to time.
6 (j) The requirements of subsections (a) and (b) do not
7apply to any of the following:
8 (1) a person that acts as a proxy for the sole purpose
9 of voting at a designated meeting of the shareholders or
10 holders of voting shares or voting interests of a licensee
11 or a person in control of a licensee;
12 (2) a person that acquires control of a licensee by
13 devise or descent;
14 (3) a person that acquires control of a licensee as a
15 personal representative, custodian, guardian,
16 conservator, or trustee, or as an officer appointed by a
17 court of competent jurisdiction or by operation of law;
18 (4) a person that is exempt under subsection (g) of
19 Section 3-1;
20 (5) A person that the Secretary determines is not
21 subject to subsection (a) based on the public interest;
22 (6) A public offering of securities of a licensee or a
23 person in control of a licensee; or
24 (7) An internal reorganization of a person in control
25 of the licensee where the ultimate person in control of
26 the licensee remains the same.

SB3412 Engrossed- 41 -LRB103 35570 RPS 65642 b
1 (k) Persons in paragraphs (2), (3), (4), (6), and (7) of
2subsection (j) in cooperation with the licensee shall notify
3the Secretary within 15 days after the acquisition of control.
4 (l) Streamlined acquisition of control.
5 (1) The requirements of subsections (a) and (b) do not
6 apply to a person that has complied with and received
7 approval to engage in money transmission under this Act or
8 was identified as a person in control in a prior
9 application filed with and approved by the Secretary or by
10 an MSB accredited state agency pursuant to a multistate
11 licensing process, if:
12 (A) the person has not had a license revoked or
13 suspended or controlled a licensee that has had a
14 license revoked or suspended while the person was in
15 control of the licensee in the previous 5 years;
16 (B) if the person is a licensee, the person is well
17 managed and has received at least a satisfactory
18 rating for compliance at its most recent examination
19 by an MSB accredited state agency if such rating was
20 given;
21 (C) the licensee to be acquired is projected to
22 meet the requirements of Article X of this Act after
23 the acquisition of control is completed, and if the
24 person acquiring control is a licensee, that licensee
25 is also projected to meet the requirements of Article
26 X of this Act after the acquisition of control is

SB3412 Engrossed- 42 -LRB103 35570 RPS 65642 b
1 completed;
2 (D) the licensee to be acquired will not implement
3 any material changes to its business plan as a result
4 of the acquisition of control, and if the person
5 acquiring control is a licensee, that licensee also
6 will not implement any material changes to its
7 business plan as a result of the acquisition of
8 control; and
9 (E) the person provides notice of the acquisition
10 in cooperation with the licensee and attests to this
11 subsection in a form and in a medium prescribed by the
12 Secretary.
13 (2) If the notice is not denied within 30 days after
14 the date on which the notice was determined to be
15 complete, the notice is deemed approved.
16 (m) Before filing an application for approval to acquire
17control of a licensee a person may request in writing a
18determination from the Secretary as to whether the person
19would be considered a person in control of a licensee upon
20consummation of a proposed transaction. If the Secretary
21determines that the person would not be a person in control of
22a licensee, the proposed person and transaction is not subject
23to the requirements of subsections (a) and (b).
24 (n) If a multistate licensing process includes a
25determination pursuant to subsection (m) and an applicant
26avails itself or is otherwise subject to the multistate

SB3412 Engrossed- 43 -LRB103 35570 RPS 65642 b
1licensing process:
2 (1) The Secretary is authorized and encouraged to
3 accept the control determination of a lead investigative
4 state with sufficient staffing, expertise, and minimum
5 standards for the purpose of subsection (m); or
6 (2) If the Department is a lead investigative state,
7 the Secretary is authorized and encouraged to investigate
8 the applicant pursuant to subsection (m) and the
9 timeframes established by agreement through the multistate
10 licensing process.
11 Section 6-2. Notice and information requirements for a
12change of key individuals.
13 (a) A licensee adding or replacing any key individual
14shall:
15 (1) provide notice in a manner prescribed by the
16 Secretary within 15 days after the effective date of the
17 key individual's appointment; and
18 (2) provide information as required by Section 5-4
19 within 45 days after the effective date.
20 (b) The Secretary may issue a formal written notice of
21denial of key individual within 90 days after the date on which
22the notice provided pursuant to subsection (a) was determined
23to be complete if the competence, experience, character, or
24integrity of the individual would not be in the best interests
25of the public or the customers of the licensee to permit the

SB3412 Engrossed- 44 -LRB103 35570 RPS 65642 b
1individual to be a key individual of such licensee.
2 (c) The Secretary shall set forth the specific reasons for
3the denial in the notice of denial and serve the licensee and
4the denied individual, either personally, or by certified
5mail. Service by certified mail shall be deemed completed when
6the notice is deposited into the U.S. Mail. A licensee who has
7been denied by the Secretary under this subsection (c) may
8submit a written request for hearing which shall include the
9particular reasons why the licensee believes that the decision
10to deny was incorrect, within 10 days after service of the
11notice of the denial. If a licensee submits a timely request
12for a hearing, the Secretary shall schedule a hearing after
13the request for a hearing unless otherwise agreed to by the
14parties. The Secretary shall conduct hearings pursuant to this
15Section and in accordance with 38 Ill. Adm. Code 100.
16 (d) If the notice provided pursuant to subsection (a) is
17not denied within 90 days after the date on which the notice
18was determined to be complete, or any extension thereof, the
19key individual is deemed approved.
20 (e) If a multistate licensing process includes a key
21individual notice review and denial process pursuant to this
22Section and the licensee avails itself or is otherwise subject
23to the multistate licensing process:
24 (1) the Secretary is authorized and encouraged to
25 accept the determination of another state;
26 (2) if the investigating state has sufficient

SB3412 Engrossed- 45 -LRB103 35570 RPS 65642 b
1 staffing, expertise, and minimum standards for the purpose
2 of this Section; or
3 (3) if the Department is a lead investigative state,
4 the Secretary is authorized and encouraged to investigate
5 the applicant pursuant to subsection (b) and the
6 timeframes established by agreement through the multistate
7 licensing process.
8
ARTICLE VII. Reporting and Records
9 Section 7-1. Report of condition.
10 (a) Each licensee, under penalty of perjury, shall submit
11a report of condition within 45 days of the end of the calendar
12quarter, or within any extended time as the Secretary may
13prescribe.
14 (b) The report of condition shall include:
15 (1) financial information at the licensee level;
16 (2) nationwide and state-specific money transmission
17 transaction information in every jurisdiction in the
18 United States where the licensee is licensed to engage in
19 money transmission;
20 (3) permissible investments report;
21 (4) transaction destination country reporting for
22 money received for transmission, if applicable; and
23 (5) any other information the Secretary reasonably
24 requires with respect to the licensee. The Secretary is

SB3412 Engrossed- 46 -LRB103 35570 RPS 65642 b
1 authorized and encouraged to use NMLS for the submission
2 of the report required by subsection (a) and is authorized
3 to change or update as necessary the requirements of this
4 Section to carry out the purposes of this Act and maintain
5 consistency with NMLS reporting.
6 (c) The information required by paragraph (4) of
7subsection (b) shall only be included in a report of condition
8submitted within 45 days of the end of the fourth calendar
9quarter.
10 Section 7-2. Audited financials.
11 (a) Each licensee shall, within 90 days after the end of
12each fiscal year, or within any extended time as the Secretary
13may prescribe, file with the Secretary:
14 (1) an audited financial statement of the licensee for
15 the fiscal year prepared in accordance with United States
16 generally accepted accounting principles; and
17 (2) any other information as the Secretary may
18 reasonably require.
19 (b) The audited financial statements shall be prepared by
20an independent certified public accountant or independent
21public accountant who is satisfactory to the Secretary;
22 (c) The audited financial statements shall include or be
23accompanied by a certificate of opinion of the independent
24certified public accountant or independent public accountant
25that is satisfactory in form and content to the Secretary. If

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1the opinion or certificate is qualified, the licensee must
2make a separate report to the Secretary notifying them of the
3qualified opinion or certification. If the certificate or
4opinion is qualified, the Secretary may order the licensee to
5take any action as the Secretary may find necessary to enable
6the certified public accountant or independent public
7accountant to remove the qualification.
8 Section 7-3. Authorized delegate reporting.
9 (a) Each licensee shall submit a report of authorized
10delegates within 45 days of the end of the calendar quarter.
11The Secretary is authorized and encouraged to use NMLS for the
12submission of the report required by this Section provided
13that such functionality is consistent with the requirements of
14this Section.
15 (b) The authorized delegate report shall include, at a
16minimum, each authorized delegate's:
17 (1) company legal name;
18 (2) taxpayer employer identification number;
19 (3) principal provider identifier;
20 (4) physical address;
21 (5) mailing address;
22 (6) any business conducted in other states;
23 (7) any fictitious or trade name;
24 (8) contact person name, phone number, and email;
25 (9) start date as licensee's authorized delegate;

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1 (10) end date acting as licensee's authorized
2 delegate, if applicable;
3 (11) court orders pursuant to Section 8-3; and
4 (12) Any other information the Secretary reasonably
5 requires with respect to the authorized delegate.
6 Section 7-4. Reports of certain events.
7 (a) A licensee shall file a report with the Secretary
8within one business day after the licensee has reason to know
9of the occurrence of any of the following events:
10 (1) the filing of a petition by or against the
11 licensee under the United States Bankruptcy Code, 11
12 U.S.C. Sections 101 through 110, as amended or recodified
13 from time to time, for bankruptcy or reorganization;
14 (2) the filing of a petition by or against the
15 licensee for receivership, the commencement of any other
16 judicial or administrative proceeding for its dissolution
17 or reorganization, or the making of a general assignment
18 for the benefit of its creditors; or
19 (3) the commencement of a proceeding to revoke or
20 suspend its license in a state or country in which the
21 licensee engages in business or is licensed.
22 (b) A licensee shall file a report with the Secretary
23within 3 business days after the licensee has reason to know of
24the occurrence of any of the following events:
25 (1) a charge or conviction of the licensee or of a key

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1 individual or person in control of the licensee for a
2 felony; or
3 (2) a charge or conviction of an authorized delegate
4 for a felony.
5 Section 7-5. Bank Secrecy Act reports. A licensee and an
6authorized delegate shall file all reports required by federal
7currency reporting, record keeping, and suspicious activity
8reporting requirements as set forth in the Bank Secrecy Act
9and other federal and State laws pertaining to money
10laundering. The timely filing of a complete and accurate
11report required under this Section with the appropriate
12federal agency is deemed compliant with the requirements of
13this Section.
14 Section 7-6. Records.
15 (a) Licensee shall maintain the following records, for
16determining its compliance with this Act, for at least 3
17years:
18 (1) a record of each outstanding money transmission
19 obligation sold;
20 (2) a general ledger posted at least monthly
21 containing all asset, liability, capital, income, and
22 expense accounts;
23 (3) bank statements and bank reconciliation records;
24 (4) records of outstanding money transmission

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1 obligations;
2 (5) records of each outstanding money transmission
3 obligation paid within the 3-year period;
4 (6) a list of the last known names and addresses of all
5 of the licensee's authorized delegates; and
6 (7) any other records the Secretary reasonably
7 requires by rule.
8 (b) The records specified in subsection (a) may be
9maintained in electronic or other retrievable form of record.
10 (c) The records specified in subsection (a) shall be
11maintained at the licensee's principal place of business or,
12with notice to the Secretary, at another location designated
13by the licensee. If the records are maintained outside this
14State, the licensee shall make them accessible to the
15Secretary on 7 business-days' notice.
16 (d) All records maintained by the licensee as required in
17subsections (a) through (c) are open to inspection by the
18Secretary pursuant to subsection (a) of Section 4-3.
19 (e) A licensee shall require and its authorized sellers
20must preserve for at least 3 years all documents relating to
21money transmission activities, unless the data embodied in
22those documents has been transmitted for recordation by the
23licensee.
24
ARTICLE VIII. Authorized Delegates

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1 Section 8-1. Relationship Between licensee and authorized
2delegate.
3 (a) As used in this Section, "remit" means to make direct
4payments of money to a licensee or its representative
5authorized to receive money or to deposit money in a bank in an
6account specified by the licensee.
7 (b) Before a licensee is authorized to conduct business
8through an authorized delegate or allows a person to act as the
9licensee's authorized delegate, the licensee must:
10 (1) adopt, and update as necessary, written policies
11 and procedures reasonably designed to ensure that the
12 licensee's authorized delegates comply with applicable
13 State and federal law;
14 (2) enter into a written contract that complies with
15 subsection (d); and
16 (3) conduct a reasonable risk-based background
17 investigation sufficient for the licensee to determine
18 whether the authorized delegate has complied and will
19 likely comply with applicable state and federal law.
20 (c) An authorized delegate must operate in full compliance
21with this Act.
22 (d) The written contract required by subsection (b) must
23be signed by the licensee and the authorized delegate and, at a
24minimum, must:
25 (1) expressly appoint the person signing the contract
26 as the licensee's authorized delegate with the authority

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1 to conduct money transmission on behalf of the licensee;
2 (2) set forth the nature and scope of the relationship
3 between the licensee and the authorized delegate and the
4 respective rights and responsibilities of the parties;
5 (3) require the authorized delegate to agree to fully
6 comply with all applicable State and federal laws, rules,
7 and regulations pertaining to money transmission,
8 including this Act and regulations implementing this Act,
9 relevant provisions of the Bank Secrecy Act, and the USA
10 PATRIOT ACT;
11 (4) require the authorized delegate to remit and
12 handle money and monetary value in accordance with the
13 terms of the contract between the licensee and the
14 authorized delegate;
15 (5) impose a trust on money and monetary value net of
16 fees received for money transmission for the benefit of
17 the licensee;
18 (6) require the authorized delegate to prepare and
19 maintain records as required by this Act or regulations
20 implementing this Act, or as reasonably requested by the
21 Secretary;
22 (7) acknowledge that the authorized delegate consents
23 to examination or investigation by the Secretary;
24 (8) state that the licensee is subject to regulation
25 by the Secretary and that, as part of that regulation, the
26 Secretary may suspend or revoke an authorized delegate

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1 designation or require the licensee to terminate an
2 authorized delegate designation; and
3 (9) acknowledge receipt of the written policies and
4 procedures required under paragraph (1) of subsection (b).
5 (e) If the licensee's license is suspended, revoked,
6surrendered, or expired, the licensee must, within 5 business
7days, provide documentation to the Secretary that the licensee
8has notified all applicable authorized delegates of the
9licensee whose names are in a record filed with the Secretary
10of the suspension, revocation, surrender, or expiration of a
11license. Upon suspension, revocation, surrender, or expiration
12of a license, applicable authorized delegates shall
13immediately cease to provide money transmission as an
14authorized delegate of the licensee.
15 (f) An authorized delegate of a licensee holds in trust
16for the benefit of the licensee all money net of fees received
17from money transmission. If any authorized delegate commingles
18any funds received from money transmission with any other
19funds or property owned or controlled by the authorized
20delegate, all commingled funds and other property shall be
21considered held in trust in favor of the licensee in an amount
22equal to the amount of money net of fees received from money
23transmission.
24 (g) An authorized delegate may not use a subdelegate to
25conduct money transmission on behalf of a licensee.

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1 Section 8-2. Unauthorized activities. A person shall not
2engage in the business of money transmission on behalf of a
3person not licensed under this Act or not exempt pursuant to
4Article III of this Act. A person that engages in such activity
5provides money transmission to the same extent as if the
6person were a licensee, and shall be jointly and severally
7liable with the unlicensed or nonexempt person.
8 Section 8-3. Prohibited authorized delegates.
9 (a) The circuit court in an action brought by a licensee
10shall have jurisdiction to grant appropriate equitable or
11legal relief, including, without limitation, prohibiting the
12authorized delegate from directly or indirectly acting as an
13authorized delegate for any licensee in this State and the
14payment of restitution, damages or other monetary relief, if
15the circuit court finds that an authorized delegate failed to
16remit money in accordance with the written contract required
17by subsection (b) of Section 8-1 or as otherwise directed by
18the licensee or required by law.
19 (b) If the circuit court issues an order prohibiting a
20person from acting as an authorized delegate for any licensee
21pursuant to subsection (a), the licensee that brought the
22action shall report the order to the Secretary within 30 days
23and shall report the order through NMLS within 90 days.
24 (c) An authorized delegate who holds money in trust for
25the benefit of a licensee and knowingly fails to remit more

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1than $1,000 of such money is guilty of a Class 3 felony.
2 (d) An authorized delegate who holds money in trust for
3the benefit of a licensee and knowingly fails to remit no more
4than $999 of such money is guilty of a Class A misdemeanor.
5
ARTICLE IX. Timely Transmission, Refunds, and Disclosures
6 Section 9-1. Timely transmission.
7 (a) Every licensee shall forward all money received for
8transmission in accordance with the terms of the agreement
9between the licensee and the sender, which shall be no more
10than 3 business days after the receipt of the money to be
11transmitted, unless the licensee has a reasonable belief or a
12reasonable basis to believe that the sender may be a victim of
13fraud or that a crime or violation of law, rule, or regulation
14has occurred, is occurring, or may occur.
15 (b) If a licensee fails to forward money received for
16transmission in accordance with this Section, the licensee
17must respond to inquiries by the sender with the reason for the
18failure unless providing a response would violate a State or
19federal law, rule, or regulation.
20 Section 9-2. Refunds.
21 (a) This Section does not apply to:
22 (1) money received for transmission subject to the
23 federal Remittance Rule, 12 CFR Part 1005, Subpart B, as

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1 amended or recodified from time to time; or
2 (2) money received for transmission pursuant to a
3 written agreement between the licensee and payee to
4 process payments for goods or services provided by the
5 payee.
6 (b) Every licensee shall refund to the sender within 10
7days after receipt of the sender's written request for a
8refund of any and all money received for transmission unless
9any of the following occurs:
10 (1) the money has been forwarded within 10 days after
11 the date on which the money was received for transmission;
12 (2) instructions have been given committing an
13 equivalent amount of money to the person designated by the
14 sender within 10 days of the date on which the money was
15 received for transmission;
16 (3) the agreement between the licensee and the sender
17 instructs the licensee to forward the money at a time that
18 is beyond 10 days after the date on which the money was
19 received for transmission; if funds have not yet been
20 forwarded in accordance with the terms of the agreement
21 between the licensee and the sender, the licensee shall
22 issue a refund in accordance with the other provisions of
23 this Section; or
24 (4) the refund is requested for a transaction that the
25 licensee has not completed based on a reasonable belief or
26 a reasonable basis to believe that a crime or violation of

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1 law, rule, or regulation has occurred, is occurring, or
2 may occur.
3 (5) the refund request does not enable the licensee
4 to:
5 (A) identify the sender's name and address or
6 telephone number; or
7 (B) identify the particular transaction to be
8 refunded if the sender has multiple transactions
9 outstanding.
10 Section 9-3. Receipts.
11 (a) As used in this Section, "receipt" means a paper
12receipt, electronic record, or other written confirmation. For
13a transaction conducted in person, the receipt may be provided
14electronically if the sender requests or agrees to receive an
15electronic receipt. For a transaction conducted electronically
16or by phone, a receipt may be provided electronically. All
17electronic receipts shall be provided in a retainable form.
18 (b) This Section does not apply to:
19 (1) Money received for transmission subject to the
20 federal Remittance Rule, 12 CFR Part 1005, Subpart B, as
21 amended or recodified from time to time;
22 (2) money received for transmission pursuant to a
23 written agreement between the licensee and payee to
24 process payments for goods or services provided by the
25 payee;

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1 (3) payroll processing services; or
2 (4) as authorized in the Secretary's sole discretion.
3 (c) Every licensee or its authorized delegate shall
4provide the sender a receipt for money received for
5transmission.
6 (1) The receipt shall contain the following
7 information, as applicable:
8 (A) the name of the sender;
9 (B) the name of the designated recipient;
10 (C) the date of the transaction;
11 (D) the unique transaction or identification
12 number;
13 (E) the name of the licensee, NMLS Unique ID, the
14 licensee's business address, and the licensee's
15 customer service telephone number;
16 (F) the amount of the transaction in United States
17 dollars;
18 (G) any fee charged by the licensee to the sender
19 for the transaction; and
20 (H) any taxes collected by the licensee from the
21 sender for the transaction.
22 (2) The receipt required by this Section shall be in
23 English and in the language principally used by the
24 licensee or authorized delegate to advertise, solicit, or
25 negotiate, either orally or in writing, for a transaction
26 conducted in person, electronically or by phone, if other

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1 than English.
2 Section 9-4. Notice. Every licensee or authorized delegate
3shall include on a receipt or disclose on the licensee's
4website or mobile application the name and phone number of the
5Department and a statement that the licensee's customers can
6contact the Department with questions or complaints about the
7licensee's money transmission services.
8 Section 9-5. Disclosures for payroll processing services.
9 (a) A licensee that provides payroll processing services
10shall:
11 (1) issue reports to clients detailing client payroll
12 obligations in advance of the payroll funds being deducted
13 from an account; and
14 (2) make worker paystubs or an equivalent statement
15 available to workers.
16 (b) Subsection (a) does not apply to a licensee providing
17payroll processing services where the licensee's client
18designates the intended recipients to the licensee and is
19responsible for providing the disclosures required by
20paragraph (2) of subsection (a).
21
ARTICLE X. Prudential Standards
22 Section 10-1. Net worth.

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1 (a) A licensee under this Act shall maintain at all times a
2tangible net worth of the greater of $100,000 or 3% of total
3assets for the first $100,000,000, 2% of additional assets for
4$100,000,000 to $1,000,000,000, and 0.5% of additional assets
5for over $1,000,000,000.
6 (b) Tangible net worth must be demonstrated at initial
7application by the applicant's most recent audited or
8unaudited financial statements pursuant to paragraph (6) of
9subsection (b) of Section 5-3.
10 (c) Notwithstanding the provisions of this Section, the
11Secretary shall have discretionary authority to exempt, in
12part or in whole, from the requirements of this Section any
13applicant or licensee.
14 Section 10-2. Surety bond.
15 (a) An applicant for a money transmission license must
16provide, and a licensee at all times must maintain, security
17consisting of a surety bond in a form satisfactory to the
18Secretary. The bond shall run to the State of Illinois for the
19benefit of any claimant against the applicant or licensee with
20respect to the receipt, handling, transmission, and payment of
21money by the licensee or authorized delegate in connection
22with the licensed operations. A claimant damaged by a breach
23of the conditions of a bond shall have a right to action upon
24the bond for damages suffered thereby and may bring suit
25directly on the bond, or the Secretary may bring suit on behalf

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1of the claimant.
2 (b) The amount of the required security shall be the
3greater of $100,000 or an amount equal to 100% of the
4licensee's average daily money transmission liability in this
5State calculated for the most recently completed quarter, up
6to a maximum of $2,000,000;
7 (c) A licensee that maintains a bond in the maximum amount
8provided for in subsection (b) is not required to calculate
9its average daily money transmission liability in this State
10for purposes of this Section.
11 (d) A licensee may exceed the maximum required bond amount
12pursuant to paragraph (5) of subsection (a) of Section 10-4.
13 (e) After receiving a license, the licensee must maintain
14the required bond plus net worth until 3 years after it ceases
15to do business in this State unless all outstanding payment
16instruments are eliminated or the provisions under the Revised
17Uniform Unclaimed Property Act have become operative and are
18adhered to by the licensee. Notwithstanding this provision,
19however, the amount required to be maintained may be reduced
20to the extent that the amount of the licensee's payment
21instruments outstanding in this State are reduced.
22 (f) Instead of a paper surety bond, each licensee and
23applicant shall file and maintain an electronic surety bond in
24NMLS or in a manner otherwise authorized by the Secretary.
25 Section 10-3. Maintenance of permissible investments.

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1 (a) A licensee shall maintain at all times permissible
2investments that have a market value computed in accordance
3with United States generally accepted accounting principles of
4not less than the aggregate amount of all of its outstanding
5money transmission obligations.
6 (b) Except for permissible investments enumerated in
7subsection (a) of Section 10-4, the Secretary, with respect to
8any licensee, may by rule or order limit the extent to which a
9specific investment maintained by a licensee within a class of
10permissible investments may be considered a permissible
11investment, if the specific investment represents undue risk
12to customers, not reflected in the market value of
13investments.
14 (c) Permissible investments, even if commingled with other
15assets of the licensee, are held in trust for the benefit of
16the purchasers and holders of the licensee's outstanding money
17transmission obligations in the event of insolvency, the
18filing of a petition by or against the licensee under the
19United States Bankruptcy Code, 11 U.S.C. Sections 101 through
20110, as amended or recodified from time to time, for
21bankruptcy or reorganization, the filing of a petition by or
22against the licensee for receivership, the commencement of any
23other judicial or administrative proceeding for its
24dissolution or reorganization, or in the event of an action by
25a creditor against the licensee who is not a beneficiary of
26this statutory trust. No permissible investments impressed

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1with a trust pursuant to this subsection shall be subject to
2attachment, levy of execution, or sequestration by order of
3any court, except for a beneficiary of this statutory trust.
4 (d) Upon the establishment of a statutory trust in
5accordance with subsection (c) or when any funds are drawn on a
6letter of credit pursuant to paragraph (4) of subsection (a)
7of Section 10-4, the Secretary shall notify the applicable
8regulator of each state in which the licensee is licensed to
9engage in money transmission, if any, of the establishment of
10the trust or the funds drawn on the letter of credit, as
11applicable. Notice shall be deemed satisfied if performed
12pursuant to a multistate agreement or through NMLS. Funds
13drawn on a letter of credit, and any other permissible
14investments held in trust for the benefit of the purchasers
15and holders of the licensee's outstanding money transmission
16obligations, are deemed held in trust for the benefit of such
17purchasers and holders on a pro rata and equitable basis in
18accordance with statutes pursuant to which permissible
19investments are required to be held in this State, and other
20states, as applicable. Any statutory trust established
21hereunder shall be terminated upon extinguishment of all of
22the licensee's outstanding money transmission obligations.
23 (e) The Secretary by rule or by order may allow other types
24of investments that the Secretary determines are of sufficient
25liquidity and quality to be a permissible investment. The
26Secretary is authorized to participate in efforts with other

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1state regulators to determine that other types of investments
2are of sufficient liquidity and quality to be a permissible
3investment.
4 Section 10-4. Types of permissible investments.
5 (a) The following investments are permissible under
6Section 10-3:
7 (1) Cash, including demand deposits, savings deposits,
8 and funds in such accounts held for the benefit of the
9 licensee's customers in an insured depository financial
10 institution, and cash equivalents including ACH items in
11 transit to the licensee and ACH items or international
12 wires in transit to a payee, cash in transit via armored
13 car, cash in smart safes, cash in licensee-owned
14 locations, debit card or credit card-funded transmission
15 receivables owed by any bank, or money market mutual funds
16 rated "AAA" by S&P, or the equivalent from any eligible
17 rating service;
18 (2) certificates of deposit or senior debt obligations
19 of an insured depository institution, as defined in
20 Section 3 of the Federal Deposit Insurance Act, 12 U.S.C.
21 1813, as amended or recodified from time to time, or as
22 defined under the federal Credit Union Act, 12 U.S.C.
23 1781, as amended or recodified from time to time;
24 (3) an obligation of the United States or a
25 commission, agency, or instrumentality thereof; an

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1 obligation that is guaranteed fully as to principal and
2 interest by the United States; or an obligation of a State
3 or a governmental subdivision, agency, or instrumentality
4 thereof;
5 (4) the full drawable amount of an irrevocable standby
6 letter of credit for which the stated beneficiary is the
7 Secretary that stipulates that the beneficiary need only
8 draw a sight draft under the letter of credit and present
9 it to obtain funds up to the letter of credit amount within
10 7 days of presentation of the items required by
11 subparagraph (C) of this paragraph.
12 (A) The letter of credit must:
13 (i) be issued by an insured depository
14 financial institution, a foreign bank that is
15 authorized under federal law to maintain a federal
16 agency or federal branch office in a State or
17 states, or a foreign bank that is authorized under
18 State law to maintain a branch in a State that (I)
19 bears an eligible rating or whose parent company
20 bears an eligible rating; and (II) is regulated,
21 supervised, and examined by United States federal
22 or State authorities having regulatory authority
23 over banks, credit unions, and trust companies;
24 (ii) be irrevocable, unconditional, and
25 indicate that it is not subject to any condition
26 or qualifications outside of the letter of credit;

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1 (iii) not contain reference to any other
2 agreements, documents, or entities, or otherwise
3 provide for any security interest in the licensee;
4 and
5 (iv) contain an issue date and expiration date
6 and expressly provide for automatic extension,
7 without a written amendment, for an additional
8 period of one year from the present or each future
9 expiration date, unless the issuer of the letter
10 of credit notifies the Secretary in writing by
11 certified or registered mail or courier mail or
12 other receipted means, at least 60 days before any
13 expiration date, that the irrevocable letter of
14 credit will not be extended.
15 (B) In the event of any notice of expiration or
16 nonextension of a letter of credit issued under
17 subdivision (iv) of subparagraph (A), the licensee
18 shall be required to demonstrate to the satisfaction
19 of the Secretary, 15 days before expiration, that the
20 licensee maintains and will maintain permissible
21 investments in accordance with subsection (a) of
22 Section 10-3 upon the expiration of the letter of
23 credit. If the licensee is not able to do so, the
24 Secretary may draw on the letter of credit in an amount
25 up to the amount necessary to meet the licensee's
26 requirements to maintain permissible investments in

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1 accordance with subsection (a) of Section 10-3. Any
2 such draw shall be offset against the licensee's
3 outstanding money transmission obligations. The drawn
4 funds shall be held in trust by the Secretary or the
5 Secretary's designated agent, to the extent authorized
6 by law, as agent for the benefit of the purchasers and
7 holders of the licensee's outstanding money
8 transmission obligations.
9 (C) The letter of credit shall provide that the
10 issuer of the letter of credit will honor, at sight, a
11 presentation made by the beneficiary to the issuer of
12 the following documents on or before the expiration
13 date of the letter of credit:
14 (i) the original letter of credit (including
15 any amendments); and
16 (ii) a written statement from the beneficiary
17 stating that any of the following events have
18 occurred:
19 (I) the filing of a petition by or against
20 the licensee under the United States
21 Bankruptcy Code, 11 U.S.C. 101 through 110, as
22 amended or recodified from time to time, for
23 bankruptcy or reorganization;
24 (II) the filing of a petition by or
25 against the licensee for receivership, or the
26 commencement of any other judicial or

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1 administrative proceeding for its dissolution
2 or reorganization;
3 (III) the seizure of assets of a licensee
4 by a Secretary pursuant to an emergency
5 order issued in accordance with applicable
6 law, on the basis of an action, violation,
7 or condition that has caused or is likely
8 to cause the insolvency of the licensee;
9 or
10 (IV) the beneficiary has received notice
11 of expiration or nonextension of a letter
12 of credit and the licensee failed to
13 demonstrate to the satisfaction of the
14 beneficiary that the licensee will
15 maintain permissible investments in
16 accordance with subsection (a) of Section
17 10-3 upon the expiration or nonextension
18 of the letter of credit.
19 (D) The Secretary may designate an agent to serve
20 on the Secretary's behalf as beneficiary to a letter
21 of credit so long as the agent and letter of credit
22 meet requirements established by the Secretary. The
23 Secretary's agent may serve as agent for multiple
24 licensing authorities for a single irrevocable letter
25 of credit if the proceeds of the drawable amount for
26 the purposes of this Section are assigned to the

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1 Secretary.
2 (E) The Secretary is authorized and encouraged to
3 participate in multistate processes designed to
4 facilitate the issuance and administration of letters
5 of credit, including, but not limited to, services
6 provided by the NMLS and State Regulatory Registry,
7 LLC.
8 (5) 100% of the surety bond or deposit provided for
9 under Section 10-2 that exceeds the average daily money
10 transmission liability in this State.
11 (b) Unless permitted by the Secretary by rule or by order
12to exceed the limit as set forth herein, the following
13investments are permissible under Section 10-3 to the extent
14specified:
15 (1) receivables that are payable to a licensee from
16 its authorized delegates in the ordinary course of
17 business that are less than 7 days old, up to 50% of the
18 aggregate value of the licensee's total permissible
19 investments;
20 (2) of the receivables permissible under paragraph (1)
21 of this subsection (b), receivables that are payable to a
22 licensee from a single authorized delegate in the ordinary
23 course of business may not exceed 10% of the aggregate
24 value of the licensee's total permissible investments.
25 (3) the following investments are permissible up to
26 20% per category and combined up to 50% of the aggregate

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1 value of the licensee's total permissible investments:
2 (A) a short-term, of up to 6 months, investment
3 bearing an eligible rating;
4 (B) commercial paper bearing an eligible rating;
5 (C) a bill, note, bond, or debenture bearing an
6 eligible rating;
7 (D) U.S. tri-party repurchase agreements
8 collateralized at 100% or more with U.S. government or
9 agency securities, municipal bonds, or other
10 securities bearing an eligible rating;
11 (E) money market mutual funds rated less than
12 "AAA" and equal to or higher than "A-" by S&P, or the
13 equivalent from any other eligible rating service; and
14 (F) a mutual fund or other investment fund
15 composed solely and exclusively of one or more
16 permissible investments listed in paragraphs (1)
17 through (3) of subsection (a).
18 (4) cash, including demand deposits, savings deposits,
19 and funds in such accounts held for the benefit of the
20 licensee's customers, at foreign depository institutions
21 are permissible up to 10% of the aggregate value of the
22 licensee's total permissible investments if the licensee
23 has received a satisfactory rating in its most recent
24 examination and the foreign depository institution:
25 (A) has an eligible rating;
26 (B) is registered under the Foreign Account Tax

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1 Compliance Act;
2 (C) is not located in any country subject to
3 sanctions from the Office of Foreign Asset Control;
4 and
5 (D) is not located in a high-risk or
6 non-cooperative jurisdiction as designated by the
7 Financial Action Task Force.
8
ARTICLE XI. Enforcement
9 Section 11-1. Prohibited acts and practices for licensees.
10It is a violation of this Act for a licensee, or other person
11subject to this Act to:
12 (1) directly or indirectly employ any scheme, device,
13 or artifice to defraud or mislead any person, including,
14 but not limited to, engaging in bait and switch
15 advertising or sales practices;
16 (2) directly or indirectly engage in any unfair or
17 deceptive act or practice toward any person, including,
18 but not limited to, any false or deceptive statement about
19 fees or other terms of a money transmission or currency
20 exchange;
21 (3) directly or indirectly obtain property by fraud or
22 misrepresentation;
23 (4) knowingly make, publish, or disseminate any false,
24 deceptive, or misleading information in the provision of

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1 money services;
2 (5) knowingly receive or take possession for personal
3 use of any property of any money services business, other
4 than in payment for services rendered, and with intent to
5 defraud, omit to make, or cause or direct to omit to make,
6 a full and true entry thereof in the books and accounts of
7 the business;
8 (6) make or concur in making any false entry, or omit
9 or concur in omitting any material entry, in the books or
10 accounts of the business;
11 (7) knowingly make or publish to the Director or the
12 Director's designee, or concur in making or publishing to
13 the Director or the Director's designee any written
14 report, exhibit, or statement of its affairs or pecuniary
15 condition containing any material statement which is
16 false, or omit or concur in omitting any statement
17 required by law to be contained therein;
18 (8) fail to make any report or statement lawfully
19 required by the Director or other public official.
20 (9) demonstrate by course of conduct, negligence or
21 incompetence in performing any act directly or indirectly
22 relating to licensed activity;
23 (10) engage in unsafe and unsound practices directly
24 or indirectly relating to licensed activity; or
25 (11) fail to comply with the provisions of this Act or
26 with any lawful order or agreement, rule, or regulations

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1 made or issued under the provisions of this Act.
2 Section 11-2. Suspension and revocation of licenses.
3 (a) The Secretary may issue an order to suspend or revoke a
4license of a licensee or order a licensee to revoke the
5designation of an authorized delegate if:
6 (1) the licensee has failed to comply with any
7 provision of this Act, or any order, decision, finding,
8 rule, regulation or direction of the Secretary lawfully
9 made pursuant to the authority of this Act;
10 (2) the licensee does not cooperate with an
11 examination or investigation by the Secretary;
12 (3) the licensee engages in fraud, intentional
13 misrepresentation, or gross negligence;
14 (4) an authorized delegate is convicted of a violation
15 of a State or federal anti-money laundering statute, or
16 violates a rule adopted or an order issued under this Act,
17 as a result of the licensee's willful misconduct or
18 grossly negligent inattention to its legal obligations;
19 (5) the competence, experience, character, or general
20 fitness of the licensee, authorized delegate, person in
21 control of a licensee, key individual, or responsible
22 person of the authorized delegate indicates that it is not
23 in the public interest to permit the person to provide
24 money transmission;
25 (6) the licensee engages in an unsafe or unsound

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1 practice;
2 (7) the licensee is insolvent, suspends payment of its
3 obligations, or makes a general assignment for the benefit
4 of its creditors;
5 (8) the licensee does not remove an authorized
6 delegate after the Secretary issues and serves upon the
7 licensee a final order including a finding that the
8 authorized delegate has violated this Act;
9 (9) a fact or condition exists that, if it had existed
10 or had been known at the time the licensee applied for its
11 license, would have been ground for denying the
12 application;
13 (10) the licensee knowingly fails to make a report
14 required by this Act;
15 (11) the licensee fails to pay a judgment entered in
16 favor of a claimant, plaintiff, or credit in an action
17 arising out of the licensee's business regulated under
18 this Act within 30 days after the judgment becomes final
19 or within 30 days after the expiration or termination of a
20 stay of execution;
21 (12) the licensee has been convicted under the laws of
22 this State, another state, or the United States of a
23 felony or of a crime involving breach of trust or
24 dishonesty; or
25 (13) the licensee violates the Illinois Uniform
26 Revised Unclaimed Property Act.

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1 (b) In determining whether a licensee is engaging in an
2unsafe or unsound practice, the Secretary may consider the
3size and condition of the licensee's money transmission, the
4magnitude of the loss, the gravity of the violation of this
5Act, and the previous conduct of the person involved.
6 (c) In every case in which a license is suspended or
7revoked, the Secretary shall issue a formal written notice of
8the suspension or revocation, setting forth the specific
9reasons for the suspension or revocation of the license and
10serve the licensee, either personally or by certified mail.
11Service by certified mail shall be deemed completed when the
12notice is deposited into U.S. Mail and the order of suspension
13or revocation of a license shall take effect upon service of
14the order.
15 (d) A licensee whose license has been suspended or revoked
16by the Secretary under this Section may request a hearing, in
17writing, within 10 days after the date of service. If a
18licensee submits a timely request for a hearing, the order
19shall be stayed until a final administrative order is entered
20and the Secretary shall schedule a hearing unless otherwise
21agreed to by the parties.
22 (e) The Secretary shall conduct hearings pursuant to this
23Section and in accordance with 38 Ill. Adm. Code 100, as
24amended or recodified from time to time.
25 Section 11-3. Suspension and revocation of authorized

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1delegates.
2 (a) The Secretary may issue an order to suspend or revoke
3the designation of an authorized delegate, if the Secretary
4finds that:
5 (1) the authorized delegate has failed to comply with
6 any provision of this Act or any order, decision, finding,
7 rule, regulation, or direction of the Secretary lawfully
8 made pursuant to the authority of this Act;
9 (2) the authorized delegate does not cooperate with an
10 examination or investigation by the Secretary;
11 (3) the authorized delegate engages in fraud,
12 intentional misrepresentation, or gross negligence;
13 (4) the authorized delegate is convicted of a
14 violation of a State or federal anti-money laundering
15 statute;
16 (5) the competence, experience, character, or general
17 fitness of the authorized delegate or a person in control
18 of the authorized delegate indicates that it is not in the
19 public interest to permit the authorized delegate to
20 provide money transmission; or
21 (6) the authorized delegate engages in an unsafe or
22 unsound practice.
23 (b) In determining whether an authorized delegate is
24engaging in an unsafe or unsound practice, the Secretary may
25consider the size and condition of the authorized delegate's
26provision of money transmission, the magnitude of the loss,

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1the gravity of the violation of this Act or a rule adopted or
2order issued under this Act, and the previous conduct of the
3authorized delegate.
4 (c) In every case in which the designation of an
5authorized delegate is suspended or revoked, the Secretary
6shall issue a formal written notice of the suspension or
7revocation, setting forth the specific reasons for the
8suspension or revocation of the designation and serve the
9authorized delegate, either personally or by certified mail.
10Service by certified mail shall be deemed completed when the
11notice is deposited into U.S. Mail and the order of suspension
12or revocation of a license shall take effect upon service of
13the order.
14 (d) An authorized delegate whose designation has been
15suspended or revoked by the Secretary under this Section may
16request a hearing, in writing, within 10 days after the date of
17service. If an authorized delegate submits a timely request
18for a hearing, the order shall be stayed until a final
19administrative order is entered and the Secretary shall
20schedule a hearing unless otherwise agreed to by the parties.
21 (e) The Secretary shall conduct hearings pursuant to this
22Section and in accordance with 38 Ill. Adm. Code 100, as
23amended or recodified from time to time.
24 Section 11-4. Orders to cease and desist and civil
25penalties.

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1 (a) If the Secretary determines that a licensee, an
2authorized delegate, or any other person has engaged or is
3engaged in practices contrary to this Act, the rules adopted
4under this Act, or an order issued under this Act, the
5Secretary may issue an order requiring the licensee or
6authorized delegate to cease and desist from the violation.
7The order becomes effective upon service of it upon the
8licensee or authorized delegate.
9 (b) The Secretary may issue an order against a licensee to
10cease and desist from providing money transmission through an
11authorized delegate that is the subject of a separate order by
12the Secretary.
13 (c) The Secretary may, in addition to or without the
14issuance of a cease and desist order, assess a penalty up to
15$1,000 against a licensee or other person for each violation
16of this Act, the rules adopted under this Act, or an order
17issued under this Act as set forth in Section 11-6. The
18issuance of an order under this Section shall not be a
19prerequisite to the taking of any action by the Secretary
20under this or any other Section of this Act.
21 (d) The Secretary shall issue a formal written notice of
22the cease and desist order, setting forth the specific reasons
23for the order and serve the licensee or the authorized
24delegate, either personally or by certified mail. Service by
25certified mail shall be deemed completed when the notice is
26deposited in the U.S. Mail.

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1 Section 11-5. Consent orders; settlements.
2 (a) The Secretary may enter into a consent order or
3settlement agreement at any time with a person to resolve a
4matter arising under this Act, the rules adopted under this
5Act, or order issued under this Act. A consent order or
6settlement agreement must be signed by the person to whom it is
7issued or by the person's authorized representative, and must
8indicate agreement with the terms contained in the order. A
9consent order or settlement agreement may provide that it does
10not constitute an admission by a person that this Act or a rule
11adopted or an order issued under this Act has been violated.
12 (b) Notwithstanding the issuance of a consent order or
13settlement agreement, the Secretary may seek civil or criminal
14penalties or compromise civil penalties concerning matter
15encompassed by the consent order unless the consent order by
16its terms expressly precludes the Secretary from doing so.
17 (c) The Secretary is authorized to compromise, settle, and
18collect civil penalties and administrative penalties, as set
19by rule, with any person for violations of this Act or of any
20rule or order issued or adopted under this Act.
21 Section 11-6. Criminal penalties. A person who engages in
22conduct requiring a license under this Act and fails to obtain
23a license from the Secretary or knowingly makes a false
24statement, misrepresentation, or false certification in an

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1application, financial statement, account record, report, or
2other document filed or required to be maintained or filed
3under this Act or who knowingly makes a false entry or omits a
4material entry in a document is guilty of a Class 3 felony.
5 Section 11-7. Civil penalties. The Secretary may assess a
6civil penalty against a person that violates this Act, a rule
7adopted or an order issued under this Act in an amount not to
8exceed $1,000 per day for each day the violation is
9outstanding, plus this State's costs and expenses for the
10investigation and prosecution of the matter, including
11reasonable attorney's fees. Each transaction in violation of
12this Act or the rules adopted under this Act or issued under
13this Act, for each day that a violation continues shall be a
14separate offense.
15 Section 11-8. Unlicensed persons. Any person who, without
16the required license, engages in conduct requiring a license
17under this Act shall be liable to the Department in an amount
18equal to the greater of (1) $5,000 or (2) an amount of money
19accepted for transmission plus an amount equal to 3 times the
20amount accepted for transmission. The Department shall cause
21any funds so recovered to be deposited into the TOMA Consumer
22Protection Fund.
23 Section 11-9. Judicial review. All final administrative

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1decisions of the Department under this Act are subject to
2judicial review under the Administrative Review Law and any
3rules adopted under the Administrative Review Law.
4
ARTICLE XII. Miscellaneous Provisions
5 Section 12-1. Uniformity of application and construction.
6In applying and construing this Act, consideration must be
7given to the need to promote uniformity of the law with respect
8to its subject matter among states that enact it.
9 Section 12-2. Severability. The provisions of this Act are
10severable under Section 1.31 of the Statute on Statutes.
11 Section 12-3. Transition period.
12 (a) Licensees pursuant to the Transmitters of Money Act in
13good standing on the effective date of this Act shall be
14licensed under this Act upon the filing of and approval by the
15Department of a renewal application in accordance with Section
165-6 and may continue to operate lawfully as a licensee in this
17State unless and until their next renewal application after
18the effective date is denied by the Department. An authorized
19seller of licensee pursuant to the Transmitters of Money Act
20in good standing as of the effective date shall become an
21authorized delegate of a licensee upon the filing of and
22approval by the Department of a renewal application by the

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1licensee in accordance with Section 5-6 and may continue to
2operate lawfully in this State as an authorized delegate of a
3licensee unless and until the licensee's next renewal
4application after the effective date is denied by the
5Department.
6 (b) A person licensed in this State to engage in the
7business of money transmission and their authorized sellers
8shall not be subject to the provisions of this Act, to the
9extent that they conflict with the Transmitters of Money Act
10or establish new requirements not imposed under the
11Transmitters of Money Act, until the licensee renews its
12current license or for 6 months after the effective date of
13this Act, whichever is later, so long as they comply with the
14Transmitters of Money Act and its implementing rules.
15 (c) Notwithstanding subsection (a), a licensee shall only
16be required to amend its authorized delegate contracts for
17contracts entered into or amended after the effective date of
18this Act or the completion of any transition period
19contemplated under subsection (b). Nothing herein shall be
20construed as limiting an authorized delegate's obligations to
21operate in full compliance with this Act as required by
22subsection (c) of Section 8-1 after the time period set forth
23in subsection (b).
24 (d) A person not required to be licensed pursuant to the
25Transmitters of Money Act shall not be required to be licensed
26and comply with this Act until January 1, 2026, unless the

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1Secretary extends the time by rule.
2 (e) A provider of payroll processing services that was not
3licensed pursuant to the Transmitters of Money Act on the
4effective date of this Act and transmitted no more than
5$10,000,000 in calendar year 2023 shall not be required to be
6licensed and comply with this Act until October 1, 2024. A
7provider of payroll processing services that was not licensed
8pursuant to the Transmitters of Money Act on the effective
9date of this Act and transmitted no more than $10,000,000 in
10calendar year 2023 shall not be penalized for providing such
11services before the effective date of this Act if the provider
12submits a completed application for licensure prior to October
131, 2024.
14 (f) Except as otherwise stated, this Act supersedes the
15Transmitters of Money Act.
16 Section 12-4. TOMA Consumer Protection Fund.
17 (a) The special income-earning fund in the State treasury
18is known as the TOMA Consumer Protection Fund.
19 (b) All moneys paid into the fund together with all
20accumulated undistributed income thereon shall be held as a
21special fund in the State treasury. The fund shall be used
22solely for the purpose of providing restitution to consumers
23who have suffered monetary loss arising out of a transaction
24regulated by this Act.
25 (c) The fund shall be applied only to restitution when

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1restitution has been ordered by the Secretary. Restitution
2shall not exceed the amount actually lost by the consumer. The
3fund shall not be used for the payment of any attorney or other
4fees.
5 (d) The fund shall be subrogated to the amount of the
6restitution, and the Secretary shall request the Attorney
7General to engage in all reasonable collection steps to
8collect restitution from the party responsible for the loss
9and reimburse the fund.
10 (e) Notwithstanding any other provisions of this Section,
11the payment of restitution from the fund shall be a matter of
12grace and not of right, and no consumer shall have any vested
13rights in the fund as a beneficiary or otherwise. Before
14seeking restitution from the fund, the consumer or beneficiary
15seeking payment of restitution shall apply for restitution on
16a form provided by the Secretary. The form shall include any
17information the Secretary may reasonably require in order to
18determine that restitution is appropriate.
19 (f) Notwithstanding any other provision of this Section,
20moneys in the TOMA Consumer Protection Fund may be transferred
21to the Professions Indirect Cost Fund, as authorized under
22Section 2105-300 of the Department of Professional Regulation
23Law of the Civil Administrative Code of Illinois.
24
Article 900. Amendatory provisions

SB3412 Engrossed- 85 -LRB103 35570 RPS 65642 b
1 Section 900-5. The Freedom of Information Act is amended
2by changing Section 7.5 as follows:
3 (5 ILCS 140/7.5)
4 (Text of Section before amendment by P.A. 103-472)
5 Sec. 7.5. Statutory exemptions. To the extent provided for
6by the statutes referenced below, the following shall be
7exempt from inspection and copying:
8 (a) All information determined to be confidential
9 under Section 4002 of the Technology Advancement and
10 Development Act.
11 (b) Library circulation and order records identifying
12 library users with specific materials under the Library
13 Records Confidentiality Act.
14 (c) Applications, related documents, and medical
15 records received by the Experimental Organ Transplantation
16 Procedures Board and any and all documents or other
17 records prepared by the Experimental Organ Transplantation
18 Procedures Board or its staff relating to applications it
19 has received.
20 (d) Information and records held by the Department of
21 Public Health and its authorized representatives relating
22 to known or suspected cases of sexually transmissible
23 disease or any information the disclosure of which is
24 restricted under the Illinois Sexually Transmissible
25 Disease Control Act.

SB3412 Engrossed- 86 -LRB103 35570 RPS 65642 b
1 (e) Information the disclosure of which is exempted
2 under Section 30 of the Radon Industry Licensing Act.
3 (f) Firm performance evaluations under Section 55 of
4 the Architectural, Engineering, and Land Surveying
5 Qualifications Based Selection Act.
6 (g) Information the disclosure of which is restricted
7 and exempted under Section 50 of the Illinois Prepaid
8 Tuition Act.
9 (h) Information the disclosure of which is exempted
10 under the State Officials and Employees Ethics Act, and
11 records of any lawfully created State or local inspector
12 general's office that would be exempt if created or
13 obtained by an Executive Inspector General's office under
14 that Act.
15 (i) Information contained in a local emergency energy
16 plan submitted to a municipality in accordance with a
17 local emergency energy plan ordinance that is adopted
18 under Section 11-21.5-5 of the Illinois Municipal Code.
19 (j) Information and data concerning the distribution
20 of surcharge moneys collected and remitted by carriers
21 under the Emergency Telephone System Act.
22 (k) Law enforcement officer identification information
23 or driver identification information compiled by a law
24 enforcement agency or the Department of Transportation
25 under Section 11-212 of the Illinois Vehicle Code.
26 (l) Records and information provided to a residential

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1 health care facility resident sexual assault and death
2 review team or the Executive Council under the Abuse
3 Prevention Review Team Act.
4 (m) Information provided to the predatory lending
5 database created pursuant to Article 3 of the Residential
6 Real Property Disclosure Act, except to the extent
7 authorized under that Article.
8 (n) Defense budgets and petitions for certification of
9 compensation and expenses for court appointed trial
10 counsel as provided under Sections 10 and 15 of the
11 Capital Crimes Litigation Act (repealed). This subsection
12 (n) shall apply until the conclusion of the trial of the
13 case, even if the prosecution chooses not to pursue the
14 death penalty prior to trial or sentencing.
15 (o) Information that is prohibited from being
16 disclosed under Section 4 of the Illinois Health and
17 Hazardous Substances Registry Act.
18 (p) Security portions of system safety program plans,
19 investigation reports, surveys, schedules, lists, data, or
20 information compiled, collected, or prepared by or for the
21 Department of Transportation under Sections 2705-300 and
22 2705-616 of the Department of Transportation Law of the
23 Civil Administrative Code of Illinois, the Regional
24 Transportation Authority under Section 2.11 of the
25 Regional Transportation Authority Act, or the St. Clair
26 County Transit District under the Bi-State Transit Safety

SB3412 Engrossed- 88 -LRB103 35570 RPS 65642 b
1 Act (repealed).
2 (q) Information prohibited from being disclosed by the
3 Personnel Record Review Act.
4 (r) Information prohibited from being disclosed by the
5 Illinois School Student Records Act.
6 (s) Information the disclosure of which is restricted
7 under Section 5-108 of the Public Utilities Act.
8 (t) (Blank).
9 (u) Records and information provided to an independent
10 team of experts under the Developmental Disability and
11 Mental Health Safety Act (also known as Brian's Law).
12 (v) Names and information of people who have applied
13 for or received Firearm Owner's Identification Cards under
14 the Firearm Owners Identification Card Act or applied for
15 or received a concealed carry license under the Firearm
16 Concealed Carry Act, unless otherwise authorized by the
17 Firearm Concealed Carry Act; and databases under the
18 Firearm Concealed Carry Act, records of the Concealed
19 Carry Licensing Review Board under the Firearm Concealed
20 Carry Act, and law enforcement agency objections under the
21 Firearm Concealed Carry Act.
22 (v-5) Records of the Firearm Owner's Identification
23 Card Review Board that are exempted from disclosure under
24 Section 10 of the Firearm Owners Identification Card Act.
25 (w) Personally identifiable information which is
26 exempted from disclosure under subsection (g) of Section

SB3412 Engrossed- 89 -LRB103 35570 RPS 65642 b
1 19.1 of the Toll Highway Act.
2 (x) Information which is exempted from disclosure
3 under Section 5-1014.3 of the Counties Code or Section
4 8-11-21 of the Illinois Municipal Code.
5 (y) Confidential information under the Adult
6 Protective Services Act and its predecessor enabling
7 statute, the Elder Abuse and Neglect Act, including
8 information about the identity and administrative finding
9 against any caregiver of a verified and substantiated
10 decision of abuse, neglect, or financial exploitation of
11 an eligible adult maintained in the Registry established
12 under Section 7.5 of the Adult Protective Services Act.
13 (z) Records and information provided to a fatality
14 review team or the Illinois Fatality Review Team Advisory
15 Council under Section 15 of the Adult Protective Services
16 Act.
17 (aa) Information which is exempted from disclosure
18 under Section 2.37 of the Wildlife Code.
19 (bb) Information which is or was prohibited from
20 disclosure by the Juvenile Court Act of 1987.
21 (cc) Recordings made under the Law Enforcement
22 Officer-Worn Body Camera Act, except to the extent
23 authorized under that Act.
24 (dd) Information that is prohibited from being
25 disclosed under Section 45 of the Condominium and Common
26 Interest Community Ombudsperson Act.

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1 (ee) Information that is exempted from disclosure
2 under Section 30.1 of the Pharmacy Practice Act.
3 (ff) Information that is exempted from disclosure
4 under the Revised Uniform Unclaimed Property Act.
5 (gg) Information that is prohibited from being
6 disclosed under Section 7-603.5 of the Illinois Vehicle
7 Code.
8 (hh) Records that are exempt from disclosure under
9 Section 1A-16.7 of the Election Code.
10 (ii) Information which is exempted from disclosure
11 under Section 2505-800 of the Department of Revenue Law of
12 the Civil Administrative Code of Illinois.
13 (jj) Information and reports that are required to be
14 submitted to the Department of Labor by registering day
15 and temporary labor service agencies but are exempt from
16 disclosure under subsection (a-1) of Section 45 of the Day
17 and Temporary Labor Services Act.
18 (kk) Information prohibited from disclosure under the
19 Seizure and Forfeiture Reporting Act.
20 (ll) Information the disclosure of which is restricted
21 and exempted under Section 5-30.8 of the Illinois Public
22 Aid Code.
23 (mm) Records that are exempt from disclosure under
24 Section 4.2 of the Crime Victims Compensation Act.
25 (nn) Information that is exempt from disclosure under
26 Section 70 of the Higher Education Student Assistance Act.

SB3412 Engrossed- 91 -LRB103 35570 RPS 65642 b
1 (oo) Communications, notes, records, and reports
2 arising out of a peer support counseling session
3 prohibited from disclosure under the First Responders
4 Suicide Prevention Act.
5 (pp) Names and all identifying information relating to
6 an employee of an emergency services provider or law
7 enforcement agency under the First Responders Suicide
8 Prevention Act.
9 (qq) Information and records held by the Department of
10 Public Health and its authorized representatives collected
11 under the Reproductive Health Act.
12 (rr) Information that is exempt from disclosure under
13 the Cannabis Regulation and Tax Act.
14 (ss) Data reported by an employer to the Department of
15 Human Rights pursuant to Section 2-108 of the Illinois
16 Human Rights Act.
17 (tt) Recordings made under the Children's Advocacy
18 Center Act, except to the extent authorized under that
19 Act.
20 (uu) Information that is exempt from disclosure under
21 Section 50 of the Sexual Assault Evidence Submission Act.
22 (vv) Information that is exempt from disclosure under
23 subsections (f) and (j) of Section 5-36 of the Illinois
24 Public Aid Code.
25 (ww) Information that is exempt from disclosure under
26 Section 16.8 of the State Treasurer Act.

SB3412 Engrossed- 92 -LRB103 35570 RPS 65642 b
1 (xx) Information that is exempt from disclosure or
2 information that shall not be made public under the
3 Illinois Insurance Code.
4 (yy) Information prohibited from being disclosed under
5 the Illinois Educational Labor Relations Act.
6 (zz) Information prohibited from being disclosed under
7 the Illinois Public Labor Relations Act.
8 (aaa) Information prohibited from being disclosed
9 under Section 1-167 of the Illinois Pension Code.
10 (bbb) Information that is prohibited from disclosure
11 by the Illinois Police Training Act and the Illinois State
12 Police Act.
13 (ccc) Records exempt from disclosure under Section
14 2605-304 of the Illinois State Police Law of the Civil
15 Administrative Code of Illinois.
16 (ddd) Information prohibited from being disclosed
17 under Section 35 of the Address Confidentiality for
18 Victims of Domestic Violence, Sexual Assault, Human
19 Trafficking, or Stalking Act.
20 (eee) Information prohibited from being disclosed
21 under subsection (b) of Section 75 of the Domestic
22 Violence Fatality Review Act.
23 (fff) Images from cameras under the Expressway Camera
24 Act. This subsection (fff) is inoperative on and after
25 July 1, 2025.
26 (ggg) Information prohibited from disclosure under

SB3412 Engrossed- 93 -LRB103 35570 RPS 65642 b
1 paragraph (3) of subsection (a) of Section 14 of the Nurse
2 Agency Licensing Act.
3 (hhh) Information submitted to the Illinois State
4 Police in an affidavit or application for an assault
5 weapon endorsement, assault weapon attachment endorsement,
6 .50 caliber rifle endorsement, or .50 caliber cartridge
7 endorsement under the Firearm Owners Identification Card
8 Act.
9 (iii) Data exempt from disclosure under Section 50 of
10 the School Safety Drill Act.
11 (jjj) (hhh) Information exempt from disclosure under
12 Section 30 of the Insurance Data Security Law.
13 (kkk) (iii) Confidential business information
14 prohibited from disclosure under Section 45 of the Paint
15 Stewardship Act.
16 (mmm) Information prohibited from being disclosed
17 under Section 4-2 of the Uniform Money Transmission
18 Modernization Act.
19(Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22;
20102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.
218-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;
22102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.
236-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,
24eff. 1-1-24; 103-508, eff. 8-4-23; revised 9-5-23.)
25 (Text of Section after amendment by P.A. 103-472)

SB3412 Engrossed- 94 -LRB103 35570 RPS 65642 b
1 Sec. 7.5. Statutory exemptions. To the extent provided for
2by the statutes referenced below, the following shall be
3exempt from inspection and copying:
4 (a) All information determined to be confidential
5 under Section 4002 of the Technology Advancement and
6 Development Act.
7 (b) Library circulation and order records identifying
8 library users with specific materials under the Library
9 Records Confidentiality Act.
10 (c) Applications, related documents, and medical
11 records received by the Experimental Organ Transplantation
12 Procedures Board and any and all documents or other
13 records prepared by the Experimental Organ Transplantation
14 Procedures Board or its staff relating to applications it
15 has received.
16 (d) Information and records held by the Department of
17 Public Health and its authorized representatives relating
18 to known or suspected cases of sexually transmissible
19 disease or any information the disclosure of which is
20 restricted under the Illinois Sexually Transmissible
21 Disease Control Act.
22 (e) Information the disclosure of which is exempted
23 under Section 30 of the Radon Industry Licensing Act.
24 (f) Firm performance evaluations under Section 55 of
25 the Architectural, Engineering, and Land Surveying
26 Qualifications Based Selection Act.

SB3412 Engrossed- 95 -LRB103 35570 RPS 65642 b
1 (g) Information the disclosure of which is restricted
2 and exempted under Section 50 of the Illinois Prepaid
3 Tuition Act.
4 (h) Information the disclosure of which is exempted
5 under the State Officials and Employees Ethics Act, and
6 records of any lawfully created State or local inspector
7 general's office that would be exempt if created or
8 obtained by an Executive Inspector General's office under
9 that Act.
10 (i) Information contained in a local emergency energy
11 plan submitted to a municipality in accordance with a
12 local emergency energy plan ordinance that is adopted
13 under Section 11-21.5-5 of the Illinois Municipal Code.
14 (j) Information and data concerning the distribution
15 of surcharge moneys collected and remitted by carriers
16 under the Emergency Telephone System Act.
17 (k) Law enforcement officer identification information
18 or driver identification information compiled by a law
19 enforcement agency or the Department of Transportation
20 under Section 11-212 of the Illinois Vehicle Code.
21 (l) Records and information provided to a residential
22 health care facility resident sexual assault and death
23 review team or the Executive Council under the Abuse
24 Prevention Review Team Act.
25 (m) Information provided to the predatory lending
26 database created pursuant to Article 3 of the Residential

SB3412 Engrossed- 96 -LRB103 35570 RPS 65642 b
1 Real Property Disclosure Act, except to the extent
2 authorized under that Article.
3 (n) Defense budgets and petitions for certification of
4 compensation and expenses for court appointed trial
5 counsel as provided under Sections 10 and 15 of the
6 Capital Crimes Litigation Act (repealed). This subsection
7 (n) shall apply until the conclusion of the trial of the
8 case, even if the prosecution chooses not to pursue the
9 death penalty prior to trial or sentencing.
10 (o) Information that is prohibited from being
11 disclosed under Section 4 of the Illinois Health and
12 Hazardous Substances Registry Act.
13 (p) Security portions of system safety program plans,
14 investigation reports, surveys, schedules, lists, data, or
15 information compiled, collected, or prepared by or for the
16 Department of Transportation under Sections 2705-300 and
17 2705-616 of the Department of Transportation Law of the
18 Civil Administrative Code of Illinois, the Regional
19 Transportation Authority under Section 2.11 of the
20 Regional Transportation Authority Act, or the St. Clair
21 County Transit District under the Bi-State Transit Safety
22 Act (repealed).
23 (q) Information prohibited from being disclosed by the
24 Personnel Record Review Act.
25 (r) Information prohibited from being disclosed by the
26 Illinois School Student Records Act.

SB3412 Engrossed- 97 -LRB103 35570 RPS 65642 b
1 (s) Information the disclosure of which is restricted
2 under Section 5-108 of the Public Utilities Act.
3 (t) (Blank).
4 (u) Records and information provided to an independent
5 team of experts under the Developmental Disability and
6 Mental Health Safety Act (also known as Brian's Law).
7 (v) Names and information of people who have applied
8 for or received Firearm Owner's Identification Cards under
9 the Firearm Owners Identification Card Act or applied for
10 or received a concealed carry license under the Firearm
11 Concealed Carry Act, unless otherwise authorized by the
12 Firearm Concealed Carry Act; and databases under the
13 Firearm Concealed Carry Act, records of the Concealed
14 Carry Licensing Review Board under the Firearm Concealed
15 Carry Act, and law enforcement agency objections under the
16 Firearm Concealed Carry Act.
17 (v-5) Records of the Firearm Owner's Identification
18 Card Review Board that are exempted from disclosure under
19 Section 10 of the Firearm Owners Identification Card Act.
20 (w) Personally identifiable information which is
21 exempted from disclosure under subsection (g) of Section
22 19.1 of the Toll Highway Act.
23 (x) Information which is exempted from disclosure
24 under Section 5-1014.3 of the Counties Code or Section
25 8-11-21 of the Illinois Municipal Code.
26 (y) Confidential information under the Adult

SB3412 Engrossed- 98 -LRB103 35570 RPS 65642 b
1 Protective Services Act and its predecessor enabling
2 statute, the Elder Abuse and Neglect Act, including
3 information about the identity and administrative finding
4 against any caregiver of a verified and substantiated
5 decision of abuse, neglect, or financial exploitation of
6 an eligible adult maintained in the Registry established
7 under Section 7.5 of the Adult Protective Services Act.
8 (z) Records and information provided to a fatality
9 review team or the Illinois Fatality Review Team Advisory
10 Council under Section 15 of the Adult Protective Services
11 Act.
12 (aa) Information which is exempted from disclosure
13 under Section 2.37 of the Wildlife Code.
14 (bb) Information which is or was prohibited from
15 disclosure by the Juvenile Court Act of 1987.
16 (cc) Recordings made under the Law Enforcement
17 Officer-Worn Body Camera Act, except to the extent
18 authorized under that Act.
19 (dd) Information that is prohibited from being
20 disclosed under Section 45 of the Condominium and Common
21 Interest Community Ombudsperson Act.
22 (ee) Information that is exempted from disclosure
23 under Section 30.1 of the Pharmacy Practice Act.
24 (ff) Information that is exempted from disclosure
25 under the Revised Uniform Unclaimed Property Act.
26 (gg) Information that is prohibited from being

SB3412 Engrossed- 99 -LRB103 35570 RPS 65642 b
1 disclosed under Section 7-603.5 of the Illinois Vehicle
2 Code.
3 (hh) Records that are exempt from disclosure under
4 Section 1A-16.7 of the Election Code.
5 (ii) Information which is exempted from disclosure
6 under Section 2505-800 of the Department of Revenue Law of
7 the Civil Administrative Code of Illinois.
8 (jj) Information and reports that are required to be
9 submitted to the Department of Labor by registering day
10 and temporary labor service agencies but are exempt from
11 disclosure under subsection (a-1) of Section 45 of the Day
12 and Temporary Labor Services Act.
13 (kk) Information prohibited from disclosure under the
14 Seizure and Forfeiture Reporting Act.
15 (ll) Information the disclosure of which is restricted
16 and exempted under Section 5-30.8 of the Illinois Public
17 Aid Code.
18 (mm) Records that are exempt from disclosure under
19 Section 4.2 of the Crime Victims Compensation Act.
20 (nn) Information that is exempt from disclosure under
21 Section 70 of the Higher Education Student Assistance Act.
22 (oo) Communications, notes, records, and reports
23 arising out of a peer support counseling session
24 prohibited from disclosure under the First Responders
25 Suicide Prevention Act.
26 (pp) Names and all identifying information relating to

SB3412 Engrossed- 100 -LRB103 35570 RPS 65642 b
1 an employee of an emergency services provider or law
2 enforcement agency under the First Responders Suicide
3 Prevention Act.
4 (qq) Information and records held by the Department of
5 Public Health and its authorized representatives collected
6 under the Reproductive Health Act.
7 (rr) Information that is exempt from disclosure under
8 the Cannabis Regulation and Tax Act.
9 (ss) Data reported by an employer to the Department of
10 Human Rights pursuant to Section 2-108 of the Illinois
11 Human Rights Act.
12 (tt) Recordings made under the Children's Advocacy
13 Center Act, except to the extent authorized under that
14 Act.
15 (uu) Information that is exempt from disclosure under
16 Section 50 of the Sexual Assault Evidence Submission Act.
17 (vv) Information that is exempt from disclosure under
18 subsections (f) and (j) of Section 5-36 of the Illinois
19 Public Aid Code.
20 (ww) Information that is exempt from disclosure under
21 Section 16.8 of the State Treasurer Act.
22 (xx) Information that is exempt from disclosure or
23 information that shall not be made public under the
24 Illinois Insurance Code.
25 (yy) Information prohibited from being disclosed under
26 the Illinois Educational Labor Relations Act.

SB3412 Engrossed- 101 -LRB103 35570 RPS 65642 b
1 (zz) Information prohibited from being disclosed under
2 the Illinois Public Labor Relations Act.
3 (aaa) Information prohibited from being disclosed
4 under Section 1-167 of the Illinois Pension Code.
5 (bbb) Information that is prohibited from disclosure
6 by the Illinois Police Training Act and the Illinois State
7 Police Act.
8 (ccc) Records exempt from disclosure under Section
9 2605-304 of the Illinois State Police Law of the Civil
10 Administrative Code of Illinois.
11 (ddd) Information prohibited from being disclosed
12 under Section 35 of the Address Confidentiality for
13 Victims of Domestic Violence, Sexual Assault, Human
14 Trafficking, or Stalking Act.
15 (eee) Information prohibited from being disclosed
16 under subsection (b) of Section 75 of the Domestic
17 Violence Fatality Review Act.
18 (fff) Images from cameras under the Expressway Camera
19 Act. This subsection (fff) is inoperative on and after
20 July 1, 2025.
21 (ggg) Information prohibited from disclosure under
22 paragraph (3) of subsection (a) of Section 14 of the Nurse
23 Agency Licensing Act.
24 (hhh) Information submitted to the Illinois State
25 Police in an affidavit or application for an assault
26 weapon endorsement, assault weapon attachment endorsement,

SB3412 Engrossed- 102 -LRB103 35570 RPS 65642 b
1 .50 caliber rifle endorsement, or .50 caliber cartridge
2 endorsement under the Firearm Owners Identification Card
3 Act.
4 (iii) Data exempt from disclosure under Section 50 of
5 the School Safety Drill Act.
6 (jjj) (hhh) Information exempt from disclosure under
7 Section 30 of the Insurance Data Security Law.
8 (kkk) (iii) Confidential business information
9 prohibited from disclosure under Section 45 of the Paint
10 Stewardship Act.
11 (lll) (iii) Data exempt from disclosure under Section
12 2-3.196 of the School Code.
13 (mmm) Information prohibited from being disclosed
14 under Section 4-2 of the Uniform Money Transmission
15 Modernization Act.
16(Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22;
17102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.
188-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;
19102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.
206-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,
21eff. 1-1-24; 103-472, eff. 8-1-24; 103-508, eff. 8-4-23;
22revised 9-5-23.)
23 Section 900-10. The State Finance Act is amended by adding
24Section 5.1015 as follows:

SB3412 Engrossed- 103 -LRB103 35570 RPS 65642 b
1 (30 ILCS 105/5.1015 new)
2 Sec. 5.1015. The TOMA Consumer Protection Fund.
3 (205 ILCS 657/Act rep.)
4 Section 900-30. The Transmitters of Money Act is repealed.
5
Article 999.
6 Section 999-95. No acceleration or delay. Where this Act
7makes changes in a statute that is represented in this Act by
8text that is not yet or no longer in effect (for example, a
9Section represented by multiple versions), the use of that
10text does not accelerate or delay the taking effect of (i) the
11changes made by this Act or (ii) provisions derived from any
12other Public Act.
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