SB 3412

Abstract

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 Provides that the Transmitters of Money Act is repealed on January 1, 2026.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. Senate Floor Amendment No. 1 Deletes a provision that exempted from the Act's requirements a person licensed as a digital asset business under the Digital Asset Regulation Act to the extent of its operation as such a digital asset business. Provides that the amount of the required security is the greater of $100,000 (rather than $1,000,000) or an amount equal to 100% of the licensee's average daily money transmission liability in this State calculated for the most recently completed quarter, up to a maximum of $2,000,000. Makes changes in provisions concerning letters of credit and provisions concerning the circumstances under which orders to suspend or revoke a license may be issued. Adds a provision concerning cease and desist orders and civil penalties. Provides that a provider of payroll processing services that was not licensed pursuant to the Transmitters of Money Act on the effective date of the Act shall not be required to be licensed and comply with the Act until October 1, 2024. Provides that a provider of payroll processing services that was not licensed pursuant to the Transmitters of Money Act on the effective date of the Act and transmitted no more than $10,000,000 in calendar year 2023 shall not be penalized for providing such services before the effective date of the amendatory Act if the provider submits a completed application for licensure prior to October 1, 2024. Makes other technical changes. Senate Floor Amendment No. 3 In the definition of "control", removes provisions concerning a rebuttable presumption of control. In a provision concerning exemptions from the Act for a person appointed as an agent of a payee to collect and process a payment from a payor to the payee for goods or services, other than money transmission itself, provided to the payor by the payee, removes a requirement that the payee must hold the agent out to the public as accepting payments for goods or services on the payee's behalf. House Committee Amendment No. 1 Deletes reference to: 30 ILCS 105/1.1015 Changes the definition of "in this State" for payroll processing services. Removes a reference to the Illinois Administrative Code. Provides that a provider of payroll processing services that was not licensed pursuant to the Transmitters of Money Act on the effective date of the Act and transmitted no more than $50,000,000 in this State (rather than $10,000,000) in calendar year 2023 shall not be required to be licensed and comply with the Act until January 1, 2025 (rather than October 1, 2024). Provides that a provider of payroll processing services that was not licensed pursuant to the Transmitters of Money Act on the effective date of the Act and transmitted no more than $50,000,000 in this State (rather than $10,000,000) in calendar year 2023 shall not be penalized for providing such services before January 1, 2025 (rather than the effective date of the Act) if the provider submits a completed application for licensure prior to January 1, 2025 (rather than October 1, 2024). Removes changes to the State Finance Act.