Pro-business legislation sponsored by State Representative David S. Olsen (R-Downers Grove) that reduces costs to specific Illinois businesses and protects consumers who use money transmitting services was signed into law on Friday.
HB 4805 reduces costs for money transmitting services like Western Union and PayPal, by bringing surety bond requirements more in line with the actual costs associated with risk. “Whereas currently the minimum bond requirement for those who use money transmitting services is $100,000, this new law reduces that bond amount to the greater of $50,000 or 1% of all Illinois-based money transmission activity,” said Olsen. “The result will be cost savings for existing businesses and lower costs for new companies who would like to do business in Illinois. Every penny adds up, and this is a good small step we can take to help Illinoisans keep more of their money in their own pockets.”
HB 4805 received unanimous support in the House in April and nearly-unanimous support in the Senate in May. It is now listed in the Illinois State Statues as Public Act 100-0640 and the provisions of the new law take effect immediately.