Bill
HB 5384
The bill strengthens DFPR’s oversight by allowing annual examinations and new or expanded fees across multiple financial sectors to fund and enhance regulation.
Title: FINANCIAL REG-FEES-INVESTIGATE
Sponsor: Rep. Margaret Croke (co-sponsor: Sen. Mark L. Walker)
Purpose and overall intent
- The bill amends multiple financial regulatory statutes to update the Department of Financial and Professional Regulation’s (DFPR) authority on examinations, investigations, and the assessment of fees. It also adds new fee-authority provisions across several acts to support administration and regulation of licensees and compliance. An overarching goal is to empower the state to regulate various financial service providers more effectively through fee-based funding and explicit examination/investigation powers.
Key provisions and changes by statute
1) Currency Exchange Act (205 ILCS 405)
- Sections amended: 16 and 19.3
- Annual reporting and investigations:
- Licensees must file an annual report by March 1 for the prior calendar year, in a form prescribed by the Secretary.
- The Secretary must, at least once per year, investigate currency exchange businesses (including ambulatory/community currency exchanges) and may involve other state or federal agencies.
- Inspections may cover all licensed locations; subpoenas may be issued; examinations conducted by the Secretary or their designated representative.
- A fee of $250 per day (or part) for a non-ambulatory examination; ambulatory exchanges incur a $150 daily fee.
- Confidentiality:
- Information gathered during examinations/investigations and complaints shall be confidential, with limited disclosure to law enforcement, appropriate regulatory bodies, or under a lawful subpoena.
- Formal complaints and department-issued orders are public records, subject to law.
Fee and cost oversight:
Rate setting:
2) Sales Finance Agency Act (205 ILCS 660) and related acts
- New and revised fee provisions (Sections 6.2, 7, 2.5)
- Fees to administer the Acts (licensing, investigations, examinations) shall be borne by regulated entities; the Secretary may set fee categories and amounts by rule; fees may be amended by rule.
- Annual examinations:
- The Department may examine each licensee annually to ensure compliance; exam costs are borne by licensees per a fee schedule reflecting actual costs.
- The Department may charge additional fees for examinations or re-examinations under Section 11, in addition to license fees.
3) Debt Management Service Act (205 ILCS 665)
- New Section 6.5: Fees
- Administering expenses shall be borne by regulated entities; the Secretary may establish by rule the category/amount of fees; fees may be amended by rule.
4) Consumer Installment Loan Act (205 ILCS 670)
- Amendments include:
- Section 2: Application procedures, license fees, and minimum positive net worth ($30,000). Bond requirement of $25,000 to the Director (bond for consumer damages).
- Section 2.5: New Fees provision (fees payable to the Department; changeable by rule).
- Section 10: Investigation authority retained, with broad access to premises and records; examinations may be conducted; fees for examination days and travel can be set by rule.
5) Debt Settlement Consumer Protection Act (225 ILCS 429)
- New Section 78: Fees
- Administering expenses borne by regulated entities; fees set by rule; amendments to fees by rule.
6) Safety Deposit License Act (240 ILCS 5)
- Sec. 23 amended to require annual inspections; public record of inspection findings.
- New Sec. 23.5: Fees
- Administering expenses borne by regulated entities; rules may set fees; amendable by rule.
7) Payday Loan Reform Act (815 ILCS 122)
- New Section 3-6: Fees
- Administration costs funded via fees; rules may set/adjust fee categories and amounts.
Effective date
- The act states: “Effective immediately.” If enacted, provisions would take effect upon becoming law.
Who is affected
- Regulated financial service entities across multiple sectors:
- Currency exchange operators (community/ambulatory)
- Sales finance agencies
- Consumer installment lenders
- Debt management and debt settlement entities
- Payday lenders
- Safety deposit licensees
- The DFPR (Secretary/Director) gains enhanced authority to impose and adjust fees, conduct annual examinations, and set maximum rates where applicable.
Procedural and timeline notes
- The bill emphasizes annual reporting, ongoing examinations, and possible fee adjustments by rule.
- Several sections authorize immediate regulatory action upon enactment (effective upon becoming law).
- Fee schedules and maximum rate structures are to be established and updated through the Illinois Administrative Procedure Act (rulemaking process).
Impact considerations
- Financial impact on regulated entities due to new/adjusted fees for licensing, examinations, and other regulatory activities.
- Potential changes to consumer protection through updated rate schedules, clearer disclosure, and more consistent enforcement.
- Increased DFPR funding mechanisms to support regulation and oversight of various financial services in Illinois.
Compiled from official sources — confirm details with the bill’s official record.
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