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92_SB0862eng SB862 Engrossed LRB9203379JScsA 1 AN ACT concerning the regulation of certain financial 2 activities. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Currency Exchange Act is amended by 6 changing Sections 4 and 16 as follows: 7 (205 ILCS 405/4) (from Ch. 17, par. 4808) 8 Sec. 4. License application; contents; fees. Application 9 for such license shall be in writing under oath and in the 10 form prescribed and furnished by the Director. Each 11 application shall contain the following: 12 (a) The full name and address (both of residence and 13 place of business) of the applicant, and if the applicant is 14 a partnership, limited liability company, or association, of 15 every member thereof, and the name and business address if 16 the applicant is a corporation; 17 (b) The county and municipality, with street and number, 18 if any, where the community currency exchange is to be 19 conducted, if the application is for a community currency 20 exchange license; 21 (c) If the application is for an ambulatory currency 22 exchange license, the name and address of the employer at 23 each location to be served by it; and 24 (d) The applicant's occupation or profession; a detailed 25 statement of his business experience for the 10 years 26 immediately preceding his application; a detailed statement 27 of his finances; his present or previous connection with any 28 other currency exchange; whether he has ever been involved in 29 any civil or criminal litigation, and the material facts 30 pertaining thereto; whether he has ever been committed to any 31 penal institution or admitted to an institution for the care SB862 Engrossed -2- LRB9203379JScsA 1 and treatment of mentally ill persons; and the nature of 2 applicant's occupancy of the premises to be licensed where 3 the application is for a community currency exchange license. 4 If the applicant is a partnership, the information specified 5 herein shall be required of each partner. If the applicant is 6 a corporation, the said information shall be required of each 7 officer, director and stockholder thereof along with 8 disclosure of their ownership interests. If the applicant is 9 a limited liability company, the information required by this 10 Section shall be provided with respect to each member and 11 manager along with disclosure of their ownership interests. 12 A community currency exchange license application shall 13 be accompanied by a fee of$150 on the effective date of this14amendatory Act of 1987 and until January 1, 1989, and $180 on15January 1, 1989 and until January 1, 1990, and$500on and16after January 1, 1990 which fee shall befor the cost of 17 investigating the applicant. If the ownership of a licensee 18 changes, in whole or in part, a new application must be filed 19 pursuant to this Section along with a $500 fee if the 20 licensee's ownership interests have been transferred or sold 21 to a new person or entity or a fee of $300 if the licensee's 22 ownership interests have been transferred or sold to a 23 current holder or holders of the licensee's ownership 24 interests. When the application for a community currency 25 exchange license has been approved by the Director and the 26 applicant so advised, an additional sum of$150 on the27effective date of this amendatory Act of 1987 and until28January 1, 1989, and $180 on January 1, 1989 and until29January 1, 1990, and$200on and after January 1, 1990as an 30 annual license fee for a period terminating on the last day 31 of the current calendar year shall be paid to the Director by 32 the applicant; provided, that the license fee for an 33 applicant applying for such a license after July 1st of any 34 year shall be$75 on the effective date of this amendatorySB862 Engrossed -3- LRB9203379JScsA 1Act of 1987 and until July 1, 1988, and $90 on July 1, 19882and until July 1, 1989, and$100on and after July 1, 19893 for the balance of such year. 4 An application for an ambulatory currency exchange 5 license shall be accompanied by a fee of $100, which fee 6 shall be for the cost of investigating the applicant. An 7 approved applicant shall not be required to pay the initial 8 investigation fee of $100 more than once. When the 9 application for an ambulatory currency exchange license has 10 been approved by the Director, and such applicant so advised, 11 such applicant shall pay an annual license fee of $25 for 12 each and every location to be served by such applicant; 13 provided that such license fee for an approved applicant 14 applying for such a license after July 1st of any year shall 15 be $12 for the balance of such year for each and every 16 location to be served by such applicant. Such an approved 17 applicant for an ambulatory currency exchange license, when 18 applying for a license with respect to a particular location, 19 shall file with the Director, at the time of filing an 20 application, a letter of memorandum, which shall be in 21 writing and under oath, signed by the owner or authorized 22 representative of the business whose employees are to be 23 served; such letter or memorandum shall contain a statement 24 that such service is desired, and that the person signing the 25 same is authorized so to do. The Director shall thereupon 26 verify the authenticity of the letter or memorandum and the 27 authority of the person who executed it, to do so. 28 (Source: P.A. 90-545, eff. 1-1-98.) 29 (205 ILCS 405/16) (from Ch. 17, par. 4832) 30 Sec. 16. Annual report; investigation; costs. Each 31 licensee shall annually, on or before the 1st day of March, 32 file a report with the Director for the calendar year period 33 from January 1st through December 31st, except that the SB862 Engrossed -4- LRB9203379JScsA 1 report filed on or before March 15, 1990 shall cover the 2 period from October 1, 1988 through December 31, 1989, (which 3 shall be used only for the official purposes of the Director) 4 giving such relevant information as the Director may 5 reasonably require concerning, and for the purpose of 6 examining, the business and operations during the preceding 7 fiscal year period of each licensed currency exchange 8 conducted by such licensee within the State. Such report 9 shall be made under oath and shall be in the form prescribed 10 by the Director and the Director may at any time and shall at 11 least once in each year investigate the currency exchange 12 business of any licensee and of every person, partnership, 13 association, limited liability company, and corporation who 14 or which shall be engaged in the business of operating a 15 currency exchange. For that purpose, the Director shall have 16 free access to the offices and places of business and to such 17 records of all such persons, firms, partnerships, 18 associations, limited liability companies and members 19 thereof, and corporations and to the officers and directors 20 thereof that shall relate to such currency exchange business. 21 The investigation may be conducted in conjunction with 22 representatives of other State agencies or agencies of 23 another state or of the United States as determined by the 24 Director. The Director may at any time inspect the locations 25 served by an ambulatory currency exchange, for the purpose of 26 determining whether such currency exchange is complying with 27 the provisions of this Act at each location served. The 28 Director may require by subpoena the attendance of and 29 examine under oath all persons whose testimony he may require 30 relative to such business, and in such cases the Director, or 31 any qualified representative of the Director whom the 32 Director may designate, may administer oaths to all such 33 persons called as witnesses, and the Director, or any such 34 qualified representative of the Director, may conduct such SB862 Engrossed -5- LRB9203379JScsA 1 examinations, and there shall be paid to the Director for 2 each such examination a fee of $150 for each day or part 3 thereof for each qualified representative designated and 4 required to conduct the examination; provided, however, that 5 in the case of an ambulatory currency exchange, such fee 6 shall be $75 for each day or part thereof and shall not be 7 increased by reason of the number of locations served by it. 8 (Source: P.A. 90-545, eff. 1-1-98.) 9 Section 10. The Sales Finance Agency Act is amended by 10 changing Sections 6 and 10 as follows: 11 (205 ILCS 660/6) (from Ch. 17, par. 5206) 12 Sec. 6. A license fee of $300 for the applicant's 13 principal place of business and $100 for each additional 14 place of business for which a license is sought must be 15 submitted with an application for license made before July 1 16 of any year. If application for a license is made on July 1 17 or thereafter, a license fee of $150 for the principal place 18 of business and of $50 for each additional place of business 19 must accompany the application. Each license remains in 20 force until surrendered, suspended, or revoked. If the 21 application for license is denied, the original license fee 22 shall be retained by the State in reimbursement of its costs 23 of investigating that application. 24 Before the license is granted, the applicant shall prove 25 in form satisfactory to the Director, that the applicant has 26 a positive net worth of a minimum of $30,000. 27 A licensee must pay to the Department, and the Department 28 must receive, by December 1 of each year, the renewal license 29 application on forms prescribed by the Director and $300 for 30 the license for his principal place of business and $100 for 31 each additional license held as a renewal license fee for the 32 succeeding calendar year.Failure to pay the license feeSB862 Engrossed -6- LRB9203379JScsA 1within the time prescribed automatically revokes renewal of2the license.3 (Source: P.A. 90-437, eff. 1-1-98.) 4 (205 ILCS 660/10) (from Ch. 17, par. 5223) 5 Sec. 10. Denial, revocation, fine, or suspension of 6 license. 7 (a) The Director may revoke or suspend a license or fine 8 a licensee if the licensee violates any provisions of this 9 Act. 10 (b) In every case in which a license is revoked or 11 suspended, a licensee is fined, or an application for a 12 license or renewal of a license is denied, the Director shall 13 serve notice of his or her action, including a statement of 14 the reasons for the action either personally or by certified 15 mail, return receipt requested. Service by certified mail 16 shall be deemed completed when the notice is deposited in the 17 U.S. mail. 18 (c) An order revoking or suspending a license or an 19 order denying renewal of a license shall take effect upon 20 service of the order, unless the licensee requests, in 21 writing, within 10 days after the date of service, a hearing. 22 In the event a hearing is requested, the order shall be 23 stayed until a final administrative order is entered. 24 (d) If the licensee requests a hearing, the Director 25 shall schedule a hearing within 30 days after the request for 26 a hearing unless otherwise agreed to by the parties. 27 (e) The hearing shall be held at the time and place 28 designated by the Director. The Director and any 29 administrative law judge designated by him or her shall have 30 the power to administer oaths and affirmations, subpoena 31 witnesses and compel their attendance, take evidence, and 32 require the production of books, papers, correspondence, and 33 other records or information that he or she considers SB862 Engrossed -7- LRB9203379JScsA 1 relevant or material to the inquiry. 2 (f) The costs for the administrative hearing shall be 3 set by rule. 4 (g) The Director shall have the authority to prescribe 5 rules for the administration of this Section. 6 (Source: P.A. 90-437, eff. 1-1-98.) 7 Section 15. The Consumer Installment Loan Act is amended 8 by changing Sections 2, 8, and 11 as follows: 9 (205 ILCS 670/2) (from Ch. 17, par. 5402) 10 Sec. 2. Application; fees; positive net worth. 11 Application for such license shall be in writing, and in the 12 form prescribed by the Director. Such applicant at the time 13 of making such application shall pay to the Director the sum 14 of $300 as an application fee and the additional sum of $300 15 as an annual license fee, for a period terminating on the 16 last day of the current calendar year; provided that if the 17 application is filed after June 30th in any year, such 18 license fee shall be 1/2 of the annual license fee for such 19 year. 20 Before the license is granted, every applicant shall 21 prove in form satisfactory to the Director that the applicant 22 has and will maintain a positive net worth of a minimum of 23 $30,000. Every applicant and licensee shall maintain a 24 surety bond in the principal sum of $25,000$1,000issued by 25 a bonding company authorized to do business in this State and 26 which shall be approved by the Director. Such bond shall run 27 to the Director and shall be for the benefit of any consumer 28personwho incurs damages as a result of any violation of the 29 Act or rules bythe actions ofa licenseeand who is lawfully30awarded such damages pursuant to an appropriate court order. 31 If the Director finds at any time that a bond is of 32 insufficient size, is insecure, exhausted, or otherwise SB862 Engrossed -8- LRB9203379JScsA 1 doubtful, an additional bond in such amount as determined by 2 the Director shall be filed by the licensee within 30 days 3 after written demand therefor by the Director. "Net worth" 4 means total assets minus total liabilities. 5 (Source: P.A. 90-437, eff. 1-1-98; 90-575, eff. 3-20-98.) 6 (205 ILCS 670/8) (from Ch. 17, par. 5408) 7 Sec. 8. Annual license fee - Expenses.Every licensee8shall, on orBefore the 15th day of each December, a licensee 9 must pay to the Director, and the Department must receive, 10 the annual license fee required by Section 2 for the next 11 succeeding calendar year. The license shall expire on the 12 first of January unless the license fee has been paid prior 13 thereto. 14 In addition to such license fee, the reasonable expense 15 of any examination, investigation or custody by the Director 16 under any provisions of this Act shall be borne by the 17 licensee. 18 If a licensee fails to renew his or her license by the 19 31st day of December, it shall automatically expire and the 20 licensee is not entitled to a hearing; however, the Director, 21 in his or her discretion, may reinstate an expired license 22 upon payment of the annual renewal fee and proof of good 23 cause for failure to renew. 24 (Source: P.A. 90-437, eff. 1-1-98.) 25 (205 ILCS 670/11) (from Ch. 17, par. 5411) 26 Sec. 11. Books and records - Reports. 27 (a) Every licensee shall retain and use in his business 28 or at another location approved by the Director such records 29 as are required by the Director to enable the Director to 30 determine whether the licensee is complying with the 31 provisions of this Act and the rules and regulations 32 promulgated pursuant to this Act. Every licensee shall SB862 Engrossed -9- LRB9203379JScsA 1 preserve the records of any loan for at least 2 years after 2 making the final entry for such loan. Accounting systems 3 maintained in whole or in part by mechanical or electronic 4 data processing methods which provide information equivalent 5 to that otherwise required and follow generally accepted 6 accounting principles are acceptable for that purpose, if 7 approved by the Director in writing. 8 (b) Each licensee shall annually, on or before the first 9 day of March, file a report with the Director giving such 10 relevant information as the Director may reasonably require 11 concerning the business and operations during the preceding 12 calendar year of each licensed place of business conducted by 13 the licensee. The report must be received by the Department 14 on or before March 1. The report shall be made under oath 15 and in a form prescribed by the Director. Whenever a licensee 16 operates 2 or more licensed offices or whenever 2 or more 17 affiliated licensees operate licensed offices, a composite 18 report of such group of licensed offices may be filed in lieu 19 of individual reports. The Director may make and publish 20 annually an analysis and recapitulation of such reports. The 21 Director may fine each licensee $25 for each day beyond March 22 1 such report is filed. 23 (Source: P.A. 90-437, eff. 1-1-98.)