Olsen’s Bill Reduces Costs to IL Businesses & Protects Consumers

State Representative David S. Olsen’s (R-Downers Grove) first approved bill of 2018 is a pro-business bill that reduces costs to specific Illinois businesses and protects consumers who use money transmitting services like Western Union and PayPal.

HB 4805brings the Surety Bond requirement for money transmitters more in line with the actual costs associated with risk by reducing the bond amount. “By reducing the current $100,000 minimum bond requirement to the greater of $50,000 or 1% of all Illinois-based money transmission activity, we will reduce costs to existing businesses and lower costs for new companies who would like to do business in Illinois,” said Olsen. “Additionally, changing the basis for calculating the Surety Bond Requirement will better protect Illinois consumers who use money transmitter services.”

According to Olsen, the request for the change was brought to him by the Illinois Department of Financial & Professional Regulation (IDFPR). The bill received unanimous committee support by the House Financial Institutions Committee in early March and unanimous support from the full House of Representatives on Wednesday in a 113-0-0 vote.

The bill now moves to the Illinois Senate for consideration.