Section 1019.5  Definitions

 

a)         For purposes of this Part, the following definitions shall apply:

 

"Applicant" – person requesting that a title and/or registration be issued in his/her name.

 

"Dealer" – every person engaged in the business of acquiring or disposing of vehicles or their essential parts and who has an established place of business for such purpose. [625 ILCS 5/1-115]

 

"Department" – Department of Vehicle Services within the Office of the Secretary of State.

 

"Financially Sound" – solvent and able to pay expenses and debts as due, as evidenced by the surety bond obtained pursuant to Section 3-905 of the Illinois Vehicle Title & Registration Law of the Illinois Vehicle Code (Ill. Rev. Stat. 1987, ch. 95½, par. 3-905).

 

"Fraudulent Activity" – any activity in which a person knowingly falsifies information.

 

"Good Business Integrity" – soundness or good moral principle and character in business dealings as evidenced by the surety bond obtained pursuant to Section 3-905 of the Illinois Vehicle Title & Registration Law of the Illinois Vehicle Code (Ill. Rev. Stat. 1987, ch. 95½, par. 3-905), or good moral principle and character in business dealings.

 

"Immediate Family" – spouse, offspring, sibling, or parent.

 

"Licensee" – a licensed remittance agent.

 

"Revocation" – the termination by formal action of a person's license to operate as a remittance agent.

 

"Secretary" – Secretary of the State of Illinois.

 

"Suspension" – the temporary withdrawal by formal action by the Secretary of a person's license to operate as a remittance agent for thirty (30) days pending compliance and re-audit.

 

"Transaction" – an application for title and/or registration of a vehicle, any supporting documents and fees for remittance to the Department.

 

(Source:  Amended at 42 Ill. Reg. 223, effective December 19, 2017)

 

Section 1019.10  Application for Remittance Agency License and Renewal

 

a)         If a person wishes to become a remittance agent, he/she shall file an application and bond pursuant to Sections 3-904 and 3-905 of the Illinois Vehicle Code [625 ILCS 5] (IVC).  The application shall be filed with the Office of the Secretary of State as set forth in subsection (f).

 

b)         The notarized application shall contain the following information:

 

1)         the previous year's license number if the person is currently licensed as a remittance agent;

 

2)         the name of the business;

 

3)         the location of the business.  A licensee shall not do business at a location not set forth in his or her license. (IVC Section 3-908)  The location of the business shall also include a working printer and facsimile capabilities;

 

4)         the applicant's home address, home telephone number and business telephone number;

 

5)         the applicant's business, occupation or profession;

 

6)         the total amount of cash, checks, electronic payments or money orders made payable to the remitter received for remittance to the State in the highest 15 day period in the preceding year if the person is currently licensed;

 

7)         whether the applicant, a member of his/her immediate family, or any employee of the applicant is an employee of the Secretary of State;

 

8)         whether the applicant has ever been involved in civil or criminal litigation and if so, the type of litigation, the date and suit or charge, the court in which the matter was heard, the style or caption of the case, the disposition of the matter, and if the judgment has been satisfied;

 

9)         whether a civil, criminal, or administrative proceeding under the Retailers' Occupation Tax Act [35 ILCS 120] or IVC Chapter 3, Article I or VII has determined that the applicant has committed a violation within the past 3 years; and

 

10)        a list of the employees and an authorization to conduct a background check of each employee.

 

c)         A surety bond shall be posted for each location where the applicant intends to do business as a remittance agent.  Each bond shall be for $20,000 or in the amount of cash, checks, electronic payments or money orders made payable to the remitter received for remittance to the Department during the highest 15 day period in the year preceding the year for which the license is applied, whichever is greater.  The bond shall be issued by a bonding or insurance company authorized to do business in Illinois.  The Department shall use a list issued by the Department of Insurance to determine if the bonding or insurance company is authorized to issue the bond.

 

d)         The applicant shall also submit the statutory fee provided in IVC Section 3-905 for application.  A license is issued for a period of one year terminating on December 31 each year.

 

e)         A remittance agent wishing to renew his/her license shall submit the material required by this Section to the Department between September 1 and December 31 of the year before the new license will become effective.

 

f)         All remittance agent license applications and corresponding materials should be submitted to:

 

Office of the Secretary of State

Vehicle Services Department

Howlett Building, Room 069

Springfield, Illinois 62756

 

g)         The Department will make available the application form to any person who requests one.  Only the Department's form will be accepted to apply for a license to operate as a remittance agent.

 

(Source:  Amended at 43 Ill. Reg. 6231, effective May 9, 2019)

 

Section 1019.20  Denial of Application for Remittance Agent's License

 

a)         Pursuant to IVC Section 3-906, the Department shall deny an application for remittance agent's licenses under the circumstances outlined in IVC Section 3-906.  If a person's application is denied, he/she shall be sent his/her application and a notice of the denial by certified mail within 30 days after the date the application was submitted.  The notice shall contain the reason for the denial and inform the applicant of his opportunity to request an administrative hearing to contest the denial pursuant to 92 Ill. Adm. Code 1001.

 

b)         Renewal of a remittance agent's license shall be denied if upon investigation it is discovered that the remittance agent is not financially sound and/or of good business integrity or is otherwise ineligible for a license as provided in IVC Section 3-906.  Auditors from the Department of Accounting Revenue within the Office of the Secretary of State shall conduct yearly inspections which includes but are not limited to examination of the temporary permits and the bond amounts.  The auditors shall also be authorized by the Department to inspect the remittance agent's business records and to report any irregularities (e.g., failure to keep records as required by IVC Section 3-910) to the Department.  Any further investigation shall be conducted by the Department of Police within the Office of the Secretary of State.

 

c)         The Department shall consider written complaints (i.e., from family, friends, neighbors, business associates, customers, other agencies, and the auditors from the Department of Accounting Revenue or Department of Police) in denying a remittance agent's license.  Upon receipt of a complaint, the Secretary of State police shall investigate the matter.  If, upon this investigation, it is discovered that a basis for denial exists pursuant to IVC Section 3-906, the remittance agent's current license shall be suspended or revoked as provided in Section 1019.30 if he/she is currently licensed as a remittance agent.

 

(Source:  Amended at 43 Ill. Reg. 6231, effective May 9, 2019)

 

Section 1019.30  Suspension and Revocation of Remittance Agents' Licenses

 

a)         Pursuant to IVC Section 3-907, the Department shall suspend a person's remittance agent's license under the following circumstances:

 

1)         he/she fails to keep records as provided in IVC Section 3-910;

 

2)         he/she fails to furnish information requested by the Department or file a bond as required by IVC Section 3-905; or

 

3)         it is discovered that he/she or a member of his/her immediate family is an employee of the Secretary of State.

 

b)         The suspension shall remain in effect for 30 days during which an audit shall be conducted to determine compliance with IVC Section 3-900.  If he/she has come into compliance, his/her remittance agent's license shall be restored.  If the remittance agent has not come into compliance, he/she shall have his/her remittance agent privileges revoked.

 

c)         A person shall have his/her remittance agent's license revoked under the following circumstances:

 

1)         he/she attempts to do business or does business as a remittance agent while his/her privileges are suspended;

 

2)         he/she fails to remit to the Department or the Illinois Department of Revenue the proper fees required by IVC Section 3-906(4), or the check submitted is returned by the bank because of insufficient funds, or the payment submitted electronically is dishonored for any reason, and if he/she fails to submit the proper fees within 10 days after a written request by the Department;

 

3)         he/she engages in a fraudulent activity or forgery while operating as a remittance agent, as determined by the Department after the investigation;

 

4)         he/she is guilty of violating any provision of IVC Chapter 2, 3 or 4 or the Use Tax Act [35 ILCS 105] or the Service Occupation Tax Act [35 ILCS 115];

 

5)         he/she has been suspended 2 times or more in one year; or

 

6)         he/she has been convicted of any felony.

 

d)         The Department shall consider written complaints (i.e., family, friends, neighbors, business associates, customers, other agencies, and auditors from the Department of Accounting Revenue) in determining whether a remittance agent's license shall be suspended or revoked.  Upon receipt of a complaint, the Department of Police within the Office of the Secretary of State shall investigate the matter to determine if a basis exists under this Section for a suspension or revocation.

 

e)         A revocation shall be for at least one year.  The remittance agent shall be notified by certified mail that his/her license to operate as a remittance agent is going to be revoked.  The notice shall contain the effective date of the revocation, the violation that is the cause of the revocation, and how he/she can contest the revocation.  The remittance agent shall be given 10 days from the date of the notice before the revocation will become effective.  In order to be reinstated following a revocation, the person shall request an administrative hearing as provided in 92 Ill. Adm. Code Ch. II.  The person's remittance agent license shall not be restored until the Secretary is satisfied that he/she will comply with the provisions of the Illinois Vehicle Title & Registration Law [625 ILCS 5/Ch. 3, Art. IX] and is of good business integrity.

 

f)         If a person wishes to contest the suspension or revocation of his/her remittance agent's license, he/she shall request an administrative hearing pursuant to IVC Section 3-907 and 92 Ill. Adm. Code 1001.

 

(Source:  Amended at 43 Ill. Reg. 6231, effective May 9, 2019)

 

Section 1019.35  Processing Transactions

 

a)         Beginning September 1, 2020, all applications for title, registration, or title and registration submitted to the Department by persons acting as remittance agents shall be submitted by an electronic registration and titling process, via either an approved electronic registration and titling service provider or through the Secretary of State's website.

 

b)         All transactions shall be electronically submitted to the Department within 5 days after receipt by the remittance agent.  All supporting documentation is required and must be submitted within 20 calendar days after the submission of the electronic application.  Failure to comply with this Section shall be grounds for suspension or revocation of the remittance agent's license, based upon the severity of the violation.

 

c)         Any person who picks up or receives transactions from other remittance agents, dealers, currency exchanges, financial institutions or any other person exempt from being licensed as a remittance agent under IVC Section 3-902 shall be considered a remittance agent under provisions of IVC chapter 3, Article IX and required to be licensed in accordance with this Part.

 

d)         The names of all employees of the remittance agent shall appear on the remittance agent's license application.  Those employees shall be issued I.D. cards and be required to present their I.D. when attempting to process transactions. . The Department shall be notified in writing of any changes in personnel, business location, and/or the business name during the licensing year within 10 calendar days of the occurrence after the change.

 

e)         No remittance agent shall employ any individual, or any member of that individual's immediate family, who is employed by the Office of the Secretary of State.  This prohibition shall not apply to persons employed by a remittance agent prior to April 10, 1983.

 

f)         All electronically submitted applications must include the remittance agent's assigned number in the designated position on the form.  Any other remittance agent involved in the transaction shall stamp his/her remittance agent number in the remarks section on the front of the application.

 

g)         The fee submitted to the Department shall be affixed to the supporting documentation required by subsection (b).  Failure of the remittance agent to affix the check, electronic payment, or money order to the proper application shall result in the rejection of the transaction.

 

(Source:  Amended at 45 Ill. Reg. 727, effective December 23, 2020)

 

Section 1019.40  Recordkeeping Requirements

 

a)         Each person licensed as a remittance agent as defined in IVC Section 3-900 shall maintain for a period of 3 years a record of each transaction involving a remittance to the Department.

 

b)         The records shall be maintained in ledger form or be computerized.  If computerized, the records should be available to the auditors from the Accounting Revenue Department or the officers from the Department of Police within 30 minutes after a request.  The records shall contain the following information:

 

1)         The name and address of the remittance agent.  If the remittance agent has more than one licensed location, the records shall reflect the location where the transaction was received and/or processed, or where the records are kept.

 

2)         The name and address of the applicant submitting the transaction.  If a remittance agent does not make the initial contact with the applicant but receives a transaction from another remittance agent, dealer, currency exchange, or financial institution, the second remittance agent shall record the original applicant's name and that of the initiating remittance agent, dealer, currency exchange, or financial institution.

 

3)         The address of the Secretary of State facility to which the transaction is delivered.  If the transaction is delivered to another remittance agent for delivery to the Department, the name and address of the second remittance agent shall be recorded by the first remittance agent.

 

4)         The type of application that the transaction involves.

 

5)         The amount of fee received by the remittance agent for delivery to the Department for each transaction.  The funds shall be identified as "cash", "check", "electronic payment" or "money order" payable to the Secretary of State, or "check", "electronic payment" or "money order" payable to the remitter.

 

6)         The initiating remittance agent shall record the amount of fee received by the remittance agent for delivery to the Department of Revenue.  The funds shall be identified as "cash", "check", "electronic payment", or "money order" payable to the Department of Revenue, or "check", "electronic payment", or "money order" payable to the remitter.

 

7)         The date the fee and transaction were received by the remittance agent.

 

8)         The date the fee and transaction were delivered to the Department and the method of delivery.

 

9)         The date that the registration plate and/or sticker was delivered to the applicant or initiating remittance agent, dealer, currency exchange or financial institution, if applicable.  If it is the policy of the remittance agent to have the applicant pick up the registration plate and/or sticker, the date that the applicant was notified of its availability, the method of notification, and date the items were picked up shall be recorded.

 

(Source:  Amended at 42 Ill. Reg. 223, effective December 19, 2017)

 

Section 1019.45  Severability Clause

 

If any clause or Section of this Part or the application of any provision of this Part to any person or circumstance is rendered unconstitutional, the remainder of this Part or its application to other persons and circumstances shall not be affected.  Each clause shall be severable without rendering the rest of the Part invalid.  Likewise, each application of the Part shall be severable without rendering future applications invalid.