Bill Text: IL SB2433 | 2017-2018 | 100th General Assembly | Chaptered

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Bill Title: Amends the Currency Exchange Act. Defines "government assistance check", "government check", "payroll check", "printed", and "protected class". Provides additional considerations by the Secretary of Financial and Professional Regulation for determining the maximum rate schedules that can be charged for check cashing and writing of money orders by community currency exchanges and ambulatory currency exchanges. Provides that the Department of Financial and Professional Regulation's authority to establish rate schedules for check cashing is subject to specified rate caps. Makes other changes. Effective June 1, 2019.

Spectrum: Partisan Bill (Democrat 46-2)

Status: (Passed) 2018-08-03 - Public Act . . . . . . . . . 100-0704 [SB2433 Detail]

Download: Illinois-2017-SB2433-Chaptered.html

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Public Act 100-0704
SB2433 Enrolled LRB100 16238 SMS 31361 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Currency Exchange Act is amended by changing
Section 19.3 as follows:
(205 ILCS 405/19.3) (from Ch. 17, par. 4838)
Sec. 19.3. (A) The General Assembly hereby finds and
declares: community currency exchanges and ambulatory currency
exchanges provide important and vital services to Illinois
citizens. In so doing, they transact extensive business
involving check cashing and the writing of money orders in
communities in which banking services are generally
unavailable. Customers of currency exchanges who receive these
services must be protected from being charged unreasonable and
unconscionable rates for cashing checks and purchasing money
orders. The Illinois Department of Financial and Professional
Regulation has the responsibility for regulating the
operations of currency exchanges and has the expertise to
determine reasonable maximum rates to be charged for check
cashing and money order purchases. Therefore, it is in the
public interest, convenience, welfare and good to have the
Department establish reasonable maximum rate schedules for
check cashing and the issuance of money orders and to require

community and ambulatory currency exchanges to prominently
display to the public the fees charged for all services. The
Secretary shall review, each year, the cost of operation of the
Currency Exchange Section and the revenue generated from
currency exchange examinations and report to the General
Assembly if the need exists for an increase in the fees
mandated by this Act to maintain the Currency Exchange Section
at a fiscally self-sufficient level. The Secretary shall
include in such report the total amount of funds remitted to
the State and delivered to the State Treasurer by currency
exchanges pursuant to the Revised Uniform Unclaimed Property
Act.
(B) The Secretary shall, by rules adopted in accordance
with the Illinois Administrative Procedure Act, expeditiously
formulate and issue schedules of reasonable maximum rates which
can be charged for check cashing and writing of money orders by
community currency exchanges and ambulatory currency
exchanges.
(1) In determining the maximum rate schedules for the
purposes of this Section the Secretary shall take into
account:
(a) Rates charged in the past for the cashing of
checks and the issuance of money orders by community
and ambulatory currency exchanges.
(b) Rates charged by banks or other business
entities for rendering the same or similar services and

the factors upon which those rates are based.
(c) The income, cost and expense of the operation
of currency exchanges.
(d) Rates charged by currency exchanges or other
similar entities located in other states for the same
or similar services and the factors upon which those
rates are based.
(e) Rates charged by the United States Postal
Service for the issuing of money orders and the factors
upon which those rates are based.
(f) A reasonable profit for a currency exchange
operation.
(g) The impact on consumers.
(h) Whether the rate schedule will
disproportionately impact anyone on the basis of any
protected characteristic or category listed in
subsection (Q) of Section 1-103 of the Illinois Human
Rights Act as those terms are defined in that Section.
(2)(a) The schedule of reasonable maximum rates
established pursuant to this Section may be modified by the
Secretary from time to time pursuant to rules adopted in
accordance with the Illinois Administrative Procedure Act.
(b) Upon the filing of a verified petition setting
forth allegations demonstrating reasonable cause to
believe that the schedule of maximum rates previously
issued and promulgated should be adjusted, the Secretary

shall expeditiously:
(i) reject the petition if it fails to demonstrate
reasonable cause to believe that an adjustment is
necessary; or
(ii) conduct such hearings, in accordance with
this Section, as may be necessary to determine whether
the petition should be granted in whole or in part.
(c) No petition may be filed pursuant to subparagraph
(a) of paragraph (2) of subsection (B) unless:
(i) at least nine months have expired since the
last promulgation of schedules of maximum rates; and
(ii) at least one-fourth of all community currency
exchange licensees join in a petition or, in the case
of ambulatory currency exchanges, a licensee or
licensees authorized to serve at least 100 locations
join in a petition.
(3) Any currency exchange may charge lower fees than
those of the applicable maximum fee schedule after filing
with the Secretary a schedule of fees it proposes to use.
(Source: P.A. 100-22, eff. 1-1-18.)
Section 99. Effective date. This Act takes effect June 1,
2019.