Sec. 12-3. Transition period.

491 words·~2 min read·/il/chapter-205/act-658/12-3

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(a)Licensees pursuant to the Transmitters of Money Act in good standing on the effective date of this Act shall be licensed under this Act upon the filing of and approval by the Department of a renewal application in accordance with Section 5-6 and may continue to operate lawfully as a licensee in this State unless and until their next renewal application after the effective date is denied by the Department. An authorized seller of licensee pursuant to the Transmitters of Money Act in good standing as of the effective date shall become an authorized delegate of a licensee upon the filing of and approval by the Department of a renewal application by the licensee in accordance with Section 5-6 and may continue to operate lawfully in this State as an authorized delegate of a licensee unless and until the licensee's next renewal application after the effective date is denied by the Department.

(b)A person licensed in this State to engage in the business of money transmission and their authorized sellers shall not be subject to the provisions of this Act, to the extent that they conflict with the Transmitters of Money Act or establish new requirements not imposed under the Transmitters of Money Act, until the licensee renews its current license or for 6 months after the effective date of this Act, whichever is later, so long as they comply with the Transmitters of Money Act and its implementing rules.

(c)Notwithstanding subsection (a), a licensee shall only be required to amend its authorized delegate contracts for contracts entered into or amended after the effective date of this Act or the completion of any transition period contemplated under subsection (b). Nothing herein shall be construed as limiting an authorized delegate's obligations to operate in full compliance with this Act as required by subsection

(c)of Section 8-1 after the time period set forth in subsection (b).

(d)A person not required to be licensed pursuant to the Transmitters of Money Act shall not be required to be licensed and comply with this Act until January 1, 2026, unless the Secretary extends the time by rule.

(e)A provider of payroll processing services that was not licensed pursuant to the Transmitters of Money Act on the effective date of this Act and transmitted no more than $50,000,000 in this State in calendar year 2023 shall not be required to be licensed and comply with this Act until January 1, 2025. A provider of payroll processing services that was not licensed pursuant to the Transmitters of Money Act on the effective date of this Act and transmitted no more than $50,000,000 in this State in calendar year 2023 shall not be penalized for providing such services before January 1, 2025 if the provider submits a completed application for licensure prior to January 1, 2025.

(f)Except as otherwise stated, this Act supersedes the Transmitters of Money Act.