Bill Text: IL HB3681 | 2013-2014 | 98th General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Transmitters of Money Act. Changes the definition of "transmitting money" to exclude providing payment services to a seller of goods or services, a payee, or a payment processor in connection with the sale of goods or services. Effective immediately.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2014-08-18 - Public Act . . . . . . . . . 98-0991 [HB3681 Detail]
Download: Illinois-2013-HB3681-Amended.html
Bill Title: Amends the Transmitters of Money Act. Changes the definition of "transmitting money" to exclude providing payment services to a seller of goods or services, a payee, or a payment processor in connection with the sale of goods or services. Effective immediately.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2014-08-18 - Public Act . . . . . . . . . 98-0991 [HB3681 Detail]
Download: Illinois-2013-HB3681-Amended.html
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1 | AMENDMENT TO HOUSE BILL 3681
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2 | AMENDMENT NO. ______. Amend House Bill 3681 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Transmitters of Money Act is amended by | ||||||
5 | changing Sections 5 and 15 as follows:
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6 | (205 ILCS 657/5)
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7 | Sec. 5. Definitions. As used in this Act, unless the | ||||||
8 | context otherwise
requires, the words and phrases defined in | ||||||
9 | this Section have the meanings
set forth in this Section.
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10 | "Authorized seller" means a person not an employee of a | ||||||
11 | licensee who
engages in the business regulated by this Act on | ||||||
12 | behalf of a licensee under
a contract between that person and | ||||||
13 | the licensee.
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14 | "Bill payment service" means the business of transmitting | ||||||
15 | money on behalf
of an Illinois resident for the purpose of | ||||||
16 | paying the resident's bills.
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1 | "Controlling person" means a person owning or holding the | ||||||
2 | power to vote
25% or more of the outstanding voting securities | ||||||
3 | of a licensee or the power to
vote the securities of another | ||||||
4 | controlling person of the licensee. For
purposes of determining | ||||||
5 | the percentage of a licensee controlled by a
controlling | ||||||
6 | person,
the person's interest shall be combined with the | ||||||
7 | interest of any other
person controlled, directly or | ||||||
8 | indirectly, by that person
or by a spouse, parent, or child of | ||||||
9 | that person.
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10 | "Department" means the Department of Financial | ||||||
11 | Institutions.
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12 | "Director" means the Director of Financial Institutions.
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13 | "Licensee" means a person licensed under this Act.
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14 | "Location" means a place of business at which activity | ||||||
15 | regulated by this Act
occurs.
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16 | "Material litigation" means any litigation that, according | ||||||
17 | to generally
accepted accounting principles, is deemed | ||||||
18 | significant to a licensee's financial
health and would be | ||||||
19 | required to be referenced in a licensee's annual audited
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20 | financial statements, reports to shareholders, or similar | ||||||
21 | documents.
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22 | "Money" means a medium of exchange that is authorized or | ||||||
23 | adopted by a
domestic or foreign government as a part of its | ||||||
24 | currency and that is
customarily used and accepted as a medium | ||||||
25 | of exchange in the country of
issuance.
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26 | "Money transmitter" means a person
who is located in or |
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1 | doing business in this State and who directly or through
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2 | authorized sellers does any of the
following in this State:
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3 | (1) Sells or issues payment instruments.
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4 | (2) Engages in the business of receiving money for | ||||||
5 | transmission or
transmitting money.
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6 | (3) Engages in the business of exchanging, for | ||||||
7 | compensation, money of the
United States Government or a | ||||||
8 | foreign government to or from money of another
government.
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9 | "Outstanding payment instrument" means, unless otherwise | ||||||
10 | treated by or
accounted for under generally accepted accounting | ||||||
11 | principles on the books of
the licensee, a payment instrument | ||||||
12 | issued by the
licensee that has been sold in the United States | ||||||
13 | directly by the licensee
or
has been sold in the United States | ||||||
14 | by an
authorized seller of the licensee and reported
to the | ||||||
15 | licensee as having been sold, but has not been paid by or for
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16 | the licensee.
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17 | "Payment instrument" means a check, draft, money order, | ||||||
18 | traveler's check,
stored value card, or
other instrument or | ||||||
19 | memorandum, written order or written receipt for the
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20 | transmission or payment of money sold or issued to one or more | ||||||
21 | persons whether
or not that instrument or order is negotiable. | ||||||
22 | Payment instrument does not
include an instrument that is | ||||||
23 | redeemable by the issuer in merchandise or
service, a credit | ||||||
24 | card voucher, or a letter of credit. A written order for the
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25 | transmission or payment of money that results in the issuance | ||||||
26 | of a check,
draft, money order, traveler's check, or other |
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1 | instrument or memorandum is not
a
payment instrument.
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2 | "Person" means an individual, partnership, association, | ||||||
3 | joint stock
association, corporation, or any other form of | ||||||
4 | business organization.
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5 | "Stored value card" means any magnetic stripe card or other | ||||||
6 | electronic
payment instrument given in exchange for
money and | ||||||
7 | other similar consideration, including but not limited to
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8 | checks, debit payments, money orders, drafts, credit payments, | ||||||
9 | and traveler's
checks,
where the card
or other
electronic | ||||||
10 | payment instrument represents a dollar value that the
consumer | ||||||
11 | can either use or give to another
individual.
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12 | "Transmitting money" means the transmission of money by any | ||||||
13 | means, including
transmissions to or from locations within the | ||||||
14 | United States or to and from
locations outside of the United | ||||||
15 | States by payment instrument, facsimile or
electronic | ||||||
16 | transfer, or otherwise, and includes bill payment
services. | ||||||
17 | "Transmitting money" does not include providing payment | ||||||
18 | services to a seller of goods or services, a payee, or a | ||||||
19 | payment processor in connection with the sale of goods or | ||||||
20 | services, including (1) providing payment processing services | ||||||
21 | and payment settlement services, (2) acting as an agent or | ||||||
22 | service provider of entities that engage in payment processing | ||||||
23 | or settlement services, or (3) receiving and disbursing | ||||||
24 | currency, funds, or other value as an agent of the payee.
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25 | (Source: P.A. 92-400, eff. 1-1-02; 93-535, eff. 1-1-04.)
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1 | (205 ILCS 657/15)
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2 | Sec. 15. Exemptions. The following are exempt from the
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3 | licensing requirements of this Act:
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4 | (1) The United States and any department or agency of | ||||||
5 | the United States.
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6 | (2) This State and any political subdivision of this | ||||||
7 | State.
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8 | (3) Banks, trust companies, building and loan | ||||||
9 | associations, savings and loan
associations, savings | ||||||
10 | banks, or credit unions, licensed or organized under the
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11 | laws of any
state
or of the United States and any foreign | ||||||
12 | bank maintaining a branch or agency
licensed or organized | ||||||
13 | under the laws of any state or of the United States.
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14 | (4) Currency exchanges licensed under the Currency | ||||||
15 | Exchange Act are exempt
from licensing only for (i) the | ||||||
16 | issuance of money orders or (ii) the sale, loading, or | ||||||
17 | unloading of stored value cards.
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18 | (5) Corporations and associations exempt under item | ||||||
19 | (3) or (4) from
the licensing
requirements of this Act are | ||||||
20 | not exempt
from approval by the Director as authorized | ||||||
21 | sellers. Nothing in this Act shall
be
deemed to enlarge the | ||||||
22 | powers of those corporations and associations.
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23 | (6) An operator of a payment system to the extent that | ||||||
24 | it provides processing, clearing, or settlement services | ||||||
25 | between or among persons exempt under this Section in | ||||||
26 | connection with wire transfers, credit card transactions, |
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1 | debit card transactions, stored value transactions, | ||||||
2 | automated clearing house transfers, or similar funds | ||||||
3 | transfers. | ||||||
4 | (Source: P.A. 97-511, eff. 8-23-11.)
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5 | Section 99. Effective date. This Act takes effect upon | ||||||
6 | becoming law.".
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