Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3670

Introduced
2/9/24  
Refer
2/9/24  
Refer
2/28/24  

Caption

FINANCIAL REGULATION-VARIOUS

Impact

The proposed act will significantly impact state regulations related to money transmission by introducing new standards for licensing and operational compliance. A notable change includes licensed money transmitters being required to maintain a higher degree of oversight over their authorized delegates, ensuring that all delegates comply with state and federal regulations. This includes the establishment of written contracts outlining the responsibilities between money transmitters and their authorized delegates, which must be backed by adequate financial reserves to safeguard customer funds.

Summary

SB3670, titled the Uniform Money Transmission Modernization Act, aims to replace the existing Transmitters of Money Act to create a more streamlined and effective regulatory framework for money transmission in Illinois. The bill is designed to ensure that the licensing and supervision of money transmission services align more closely with modern financial practices while providing protections for consumers. Key components of the legislation include defining the licensing requirements for money transmitters, establishing reporting standards, and creating enforcement mechanisms intended to deter violations of the law.

Contention

Discussions surrounding SB3670 have highlighted notable points of contention. Supporters argue that the modernization of the money transmission framework is crucial to adapt to the evolving financial landscape and will provide greater protections for consumers against financial fraud. However, some critics have expressed concern that the increased regulatory burden on small money transmitters could stifle innovation and access to financial services for underserved communities. Additionally, there are worries about the potential costs associated with compliance and the implications for small businesses that may not have the resources to meet the new standards.

Companion Bills

No companion bills found.

Previously Filed As

IL SB98

Modifies various provisions relating to financial institutions

IL HB343

Financial institutions; regulation of money transmitters, penalty.

IL HB1753

FINANCIALLY DISTRESSED CITIES

IL H1087

Pub. Rec./Office of Financial Regulation

IL S0540

Office of Financial Regulation

IL HB1942

Financial institutions; regulation of money transmitters, penalty, effective date.

IL H0381

Office of Financial Regulation

IL S1440

Public Records/Office of Financial Regulation

IL AB2795

An act to amend Sections 25608, 31210, and 31526 of the Corporations Code, to amend Sections 331.5, 2042, 8032, 12214, 17207, 18351, 23016, and 50401 of, to add Section 302 to, and to repeal Division 15.5 (commencing with Section 32000) of, the Financial Code, and to amend Sections 16430 and 53667 of the Government Code, relating to finance.

IL HB3637

HEALTH REGULATION-VARIOUS

Similar Bills

NJ S1673

Requires electric transmission owners to join transmission entities.

NJ A2757

Requires electric transmission owners to join transmission entities.

KS HB2226

Providing incumbent electric transmission owners a right of first refusal for the construction of certain electric transmission lines.

MI SB0932

Public utilities: electric utilities; guidelines for applications for certificates of public convenience and necessity; provide for. Amends sec. 6 of 1995 PA 30 (MCL 460.566).

IA SSB1113

A bill for an act relating to electric transmission lines approved by federally registered planning authority transmission plans including right of first refusal and land restoration requirements, and including effective date and applicability provisions.

MI SB0930

Public utilities: electric utilities; guidelines for applications for certificates of public convenience and necessity; provide for. Amends sec. 8 of 1995 PA 30 (MCL 460.568).

WI AB25

An incumbent transmission facility owner’s right to construct, own, and maintain certain transmission facilities and Public Service Commission procedures if the transmission facility is a regionally cost-shared transmission line.

WI SB28

An incumbent transmission facility owner’s right to construct, own, and maintain certain transmission facilities and Public Service Commission procedures if the transmission facility is a regionally cost-shared transmission line.