Bill Text: IL HB2980 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Illinois Banking Act and the Illinois Credit Union Act. Provides that the Secretary of Financial and Professional Regulation shall not: issue an order against a financial institution for unsafe or unsound banking practices solely because the entity provides financial services to a cannabis-related legitimate business; prohibit, penalize, or otherwise discourage a financial institution from providing financial services to a cannabis-related legitimate business solely because the entity provides financial services to a cannabis-related legitimate business; recommend, incentivize, or encourage a financial institution not to offer financial services to an account holder or to downgrade or cancel the financial services offered to an account holder solely because the account holder is a manufacturer or producer or is the owner, operator, or employee of a cannabis-related legitimate business, the account holder later becomes an owner or operator of a cannabis-related legitimate business, or the financial institution was not aware that the account holder is the owner or operator of a cannabis-related legitimate business; and take any adverse or corrective supervisory action on a loan made to an owner or operator of a cannabis-related legitimate business solely because the owner or operator owns or operates a cannabis-related legitimate business or an owner or operator of real estate or equipment that is leased to a cannabis-related legitimate business solely because the owner or operator of the real estate or equipment leased the equipment or real estate to a cannabis-related legitimate business. Authorizes the Secretary to furnish confidential supervisory information relating to a financial institution providing financial services to cannabis-related businesses, limited to the name, contact information, and such other information as the Secretary determines is prudent, to the Illinois State Treasurer. Effective immediately.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2019-03-29 - House Committee Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee [HB2980 Detail]

Download: Illinois-2019-HB2980-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB2980 Introduced , by Rep. Kelly M. Cassidy SYNOPSIS AS INTRODUCED:
205 ILCS 5/48
205 ILCS 5/48.3 from Ch. 17, par. 360.2
205 ILCS 305/8 from Ch. 17, par. 4409
205 ILCS 305/9.1
Amends the Illinois Banking Act and the Illinois Credit Union Act. Provides that the Secretary of Financial and Professional Regulation shall not: issue an order against a financial institution for unsafe or unsound banking practices solely because the entity provides financial services to a cannabis-related legitimate business; prohibit, penalize, or otherwise discourage a financial institution from providing financial services to a cannabis-related legitimate business solely because the entity provides financial services to a cannabis-related legitimate business; recommend, incentivize, or encourage a financial institution not to offer financial services to an account holder or to downgrade or cancel the financial services offered to an account holder solely because the account holder is a manufacturer or producer or is the owner, operator, or employee of a cannabis-related legitimate business, the account holder later becomes an owner or operator of a cannabis-related legitimate business, or the financial institution was not aware that the account holder is the owner or operator of a cannabis-related legitimate business; and take any adverse or corrective supervisory action on a loan made to an owner or operator of a cannabis-related legitimate business solely because the owner or operator owns or operates a cannabis-related legitimate business or an owner or operator of real estate or equipment that is leased to a cannabis-related legitimate business solely because the owner or operator of the real estate or equipment leased the equipment or real estate to a cannabis-related legitimate business. Authorizes the Secretary to furnish confidential supervisory information relating to a financial institution providing financial services to cannabis-related businesses, limited to the name, contact information, and such other information as the Secretary determines is prudent, to the Illinois State Treasurer. Effective immediately.
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A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Banking Act is amended by changing
Sections 48 and 48.3 as follows:
(205 ILCS 5/48)
Sec. 48. Secretary's powers; duties. The Secretary shall
have the powers and authority, and is charged with the duties
and responsibilities designated in this Act, and a State bank
shall not be subject to any other visitorial power other than
as authorized by this Act, except those vested in the courts,
or upon prior consultation with the Secretary, a foreign bank
regulator with an appropriate supervisory interest in the
parent or affiliate of a state bank. In the performance of the
Secretary's duties:
(1) The Commissioner shall call for statements from all
State banks as provided in Section 47 at least one time
during each calendar quarter.
(2) (a) The Commissioner, as often as the Commissioner
shall deem necessary or proper, and no less frequently than
18 months following the preceding examination, shall
appoint a suitable person or persons to make an examination
of the affairs of every State bank, except that for every

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eligible State bank, as defined by regulation, the
Commissioner in lieu of the examination may accept on an
alternating basis the examination made by the eligible
State bank's appropriate federal banking agency pursuant
to Section 111 of the Federal Deposit Insurance Corporation
Improvement Act of 1991, provided the appropriate federal
banking agency has made such an examination. A person so
appointed shall not be a stockholder or officer or employee
of any bank which that person may be directed to examine,
and shall have powers to make a thorough examination into
all the affairs of the bank and in so doing to examine any
of the officers or agents or employees thereof on oath and
shall make a full and detailed report of the condition of
the bank to the Commissioner. In making the examination the
examiners shall include an examination of the affairs of
all the affiliates of the bank, as defined in subsection
(b) of Section 35.2 of this Act, or subsidiaries of the
bank as shall be necessary to disclose fully the conditions
of the subsidiaries or affiliates, the relations between
the bank and the subsidiaries or affiliates and the effect
of those relations upon the affairs of the bank, and in
connection therewith shall have power to examine any of the
officers, directors, agents, or employees of the
subsidiaries or affiliates on oath. After May 31, 1997, the
Commissioner may enter into cooperative agreements with
state regulatory authorities of other states to provide for

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examination of State bank branches in those states, and the
Commissioner may accept reports of examinations of State
bank branches from those state regulatory authorities.
These cooperative agreements may set forth the manner in
which the other state regulatory authorities may be
compensated for examinations prepared for and submitted to
the Commissioner.
(b) After May 31, 1997, the Commissioner is authorized
to examine, as often as the Commissioner shall deem
necessary or proper, branches of out-of-state banks. The
Commissioner may establish and may assess fees to be paid
to the Commissioner for examinations under this subsection
(b). The fees shall be borne by the out-of-state bank,
unless the fees are borne by the state regulatory authority
that chartered the out-of-state bank, as determined by a
cooperative agreement between the Commissioner and the
state regulatory authority that chartered the out-of-state
bank.
(2.1) Pursuant to paragraph (a) of subsection (6) of
this Section, the Secretary shall adopt rules that ensure
consistency and due process in the examination process. The
Secretary may also establish guidelines that (i) define the
scope of the examination process and (ii) clarify
examination items to be resolved. The rules, formal
guidance, interpretive letters, or opinions furnished to
State banks by the Secretary may be relied upon by the

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State banks.
(2.5) Whenever any State bank, any subsidiary or
affiliate of a State bank, or after May 31, 1997, any
branch of an out-of-state bank causes to be performed, by
contract or otherwise, any bank services for itself,
whether on or off its premises:
(a) that performance shall be subject to
examination by the Commissioner to the same extent as
if services were being performed by the bank or, after
May 31, 1997, branch of the out-of-state bank itself on
its own premises; and
(b) the bank or, after May 31, 1997, branch of the
out-of-state bank shall notify the Commissioner of the
existence of a service relationship. The notification
shall be submitted with the first statement of
condition (as required by Section 47 of this Act) due
after the making of the service contract or the
performance of the service, whichever occurs first.
The Commissioner shall be notified of each subsequent
contract in the same manner.
For purposes of this subsection (2.5), the term "bank
services" means services such as sorting and posting of
checks and deposits, computation and posting of interest
and other credits and charges, preparation and mailing of
checks, statements, notices, and similar items, or any
other clerical, bookkeeping, accounting, statistical, or

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similar functions performed for a State bank, including but
not limited to electronic data processing related to those
bank services.
(3) The expense of administering this Act, including
the expense of the examinations of State banks as provided
in this Act, shall to the extent of the amounts resulting
from the fees provided for in paragraphs (a), (a-2), and
(b) of this subsection (3) be assessed against and borne by
the State banks:
(a) Each bank shall pay to the Secretary a Call
Report Fee which shall be paid in quarterly
installments equal to one-fourth of the sum of the
annual fixed fee of $800, plus a variable fee based on
the assets shown on the quarterly statement of
condition delivered to the Secretary in accordance
with Section 47 for the preceding quarter according to
the following schedule: 16¢ per $1,000 of the first
$5,000,000 of total assets, 15¢ per $1,000 of the next
$20,000,000 of total assets, 13¢ per $1,000 of the next
$75,000,000 of total assets, 9¢ per $1,000 of the next
$400,000,000 of total assets, 7¢ per $1,000 of the next
$500,000,000 of total assets, and 5¢ per $1,000 of all
assets in excess of $1,000,000,000, of the State bank.
The Call Report Fee shall be calculated by the
Secretary and billed to the banks for remittance at the
time of the quarterly statements of condition provided

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for in Section 47. The Secretary may require payment of
the fees provided in this Section by an electronic
transfer of funds or an automatic debit of an account
of each of the State banks. In case more than one
examination of any bank is deemed by the Secretary to
be necessary in any examination frequency cycle
specified in subsection 2(a) of this Section, and is
performed at his direction, the Secretary may assess a
reasonable additional fee to recover the cost of the
additional examination. In lieu of the method and
amounts set forth in this paragraph (a) for the
calculation of the Call Report Fee, the Secretary may
specify by rule that the Call Report Fees provided by
this Section may be assessed semiannually or some other
period and may provide in the rule the formula to be
used for calculating and assessing the periodic Call
Report Fees to be paid by State banks.
(a-1) If in the opinion of the Commissioner an
emergency exists or appears likely, the Commissioner
may assign an examiner or examiners to monitor the
affairs of a State bank with whatever frequency he
deems appropriate, including but not limited to a daily
basis. The reasonable and necessary expenses of the
Commissioner during the period of the monitoring shall
be borne by the subject bank. The Commissioner shall
furnish the State bank a statement of time and expenses

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if requested to do so within 30 days of the conclusion
of the monitoring period.
(a-2) On and after January 1, 1990, the reasonable
and necessary expenses of the Commissioner during
examination of the performance of electronic data
processing services under subsection (2.5) shall be
borne by the banks for which the services are provided.
An amount, based upon a fee structure prescribed by the
Commissioner, shall be paid by the banks or, after May
31, 1997, branches of out-of-state banks receiving the
electronic data processing services along with the
Call Report Fee assessed under paragraph (a) of this
subsection (3).
(a-3) After May 31, 1997, the reasonable and
necessary expenses of the Commissioner during
examination of the performance of electronic data
processing services under subsection (2.5) at or on
behalf of branches of out-of-state banks shall be borne
by the out-of-state banks, unless those expenses are
borne by the state regulatory authorities that
chartered the out-of-state banks, as determined by
cooperative agreements between the Commissioner and
the state regulatory authorities that chartered the
out-of-state banks.
(b) "Fiscal year" for purposes of this Section 48
is defined as a period beginning July 1 of any year and

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ending June 30 of the next year. The Commissioner shall
receive for each fiscal year, commencing with the
fiscal year ending June 30, 1987, a contingent fee
equal to the lesser of the aggregate of the fees paid
by all State banks under paragraph (a) of subsection
(3) for that year, or the amount, if any, whereby the
aggregate of the administration expenses, as defined
in paragraph (c), for that fiscal year exceeds the sum
of the aggregate of the fees payable by all State banks
for that year under paragraph (a) of subsection (3),
plus any amounts transferred into the Bank and Trust
Company Fund from the State Pensions Fund for that
year, plus all other amounts collected by the
Commissioner for that year under any other provision of
this Act, plus the aggregate of all fees collected for
that year by the Commissioner under the Corporate
Fiduciary Act, excluding the receivership fees
provided for in Section 5-10 of the Corporate Fiduciary
Act, and the Foreign Banking Office Act. The aggregate
amount of the contingent fee thus arrived at for any
fiscal year shall be apportioned amongst, assessed
upon, and paid by the State banks and foreign banking
corporations, respectively, in the same proportion
that the fee of each under paragraph (a) of subsection
(3), respectively, for that year bears to the aggregate
for that year of the fees collected under paragraph (a)

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of subsection (3). The aggregate amount of the
contingent fee, and the portion thereof to be assessed
upon each State bank and foreign banking corporation,
respectively, shall be determined by the Commissioner
and shall be paid by each, respectively, within 120
days of the close of the period for which the
contingent fee is computed and is payable, and the
Commissioner shall give 20 days' advance notice of the
amount of the contingent fee payable by the State bank
and of the date fixed by the Commissioner for payment
of the fee.
(c) The "administration expenses" for any fiscal
year shall mean the ordinary and contingent expenses
for that year incident to making the examinations
provided for by, and for otherwise administering, this
Act, the Corporate Fiduciary Act, excluding the
expenses paid from the Corporate Fiduciary
Receivership account in the Bank and Trust Company
Fund, the Foreign Banking Office Act, the Electronic
Fund Transfer Act, and the Illinois Bank Examiners'
Education Foundation Act, including all salaries and
other compensation paid for personal services rendered
for the State by officers or employees of the State,
including the Commissioner and the Deputy
Commissioners, communication equipment and services,
office furnishings, surety bond premiums, and travel

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expenses of those officers and employees, employees,
expenditures or charges for the acquisition,
enlargement or improvement of, or for the use of, any
office space, building, or structure, or expenditures
for the maintenance thereof or for furnishing heat,
light, or power with respect thereto, all to the extent
that those expenditures are directly incidental to
such examinations or administration. The Commissioner
shall not be required by paragraphs (c) or (d-1) of
this subsection (3) to maintain in any fiscal year's
budget appropriated reserves for accrued vacation and
accrued sick leave that is required to be paid to
employees of the Commissioner upon termination of
their service with the Commissioner in an amount that
is more than is reasonably anticipated to be necessary
for any anticipated turnover in employees, whether due
to normal attrition or due to layoffs, terminations, or
resignations.
(d) The aggregate of all fees collected by the
Secretary under this Act, the Corporate Fiduciary Act,
or the Foreign Banking Office Act on and after July 1,
1979, shall be paid promptly after receipt of the same,
accompanied by a detailed statement thereof, into the
State treasury and shall be set apart in a special fund
to be known as the "Bank and Trust Company Fund",
except as provided in paragraph (c) of subsection (11)

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of this Section. All earnings received from
investments of funds in the Bank and Trust Company Fund
shall be deposited in the Bank and Trust Company Fund
and may be used for the same purposes as fees deposited
in that Fund. The amount from time to time deposited
into the Bank and Trust Company Fund shall be used: (i)
to offset the ordinary administrative expenses of the
Secretary as defined in this Section or (ii) as a
credit against fees under paragraph (d-1) of this
subsection (3). Nothing in this amendatory Act of 1979
shall prevent continuing the practice of paying
expenses involving salaries, retirement, social
security, and State-paid insurance premiums of State
officers by appropriations from the General Revenue
Fund. However, the General Revenue Fund shall be
reimbursed for those payments made on and after July 1,
1979, by an annual transfer of funds from the Bank and
Trust Company Fund. Moneys in the Bank and Trust
Company Fund may be transferred to the Professions
Indirect Cost Fund, as authorized under Section
2105-300 of the Department of Professional Regulation
Law of the Civil Administrative Code of Illinois.
Notwithstanding provisions in the State Finance
Act, as now or hereafter amended, or any other law to
the contrary, the sum of $18,788,847 shall be
transferred from the Bank and Trust Company Fund to the

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Financial Institutions Settlement of 2008 Fund on the
effective date of this amendatory Act of the 95th
General Assembly, or as soon thereafter as practical.
Notwithstanding provisions in the State Finance
Act, as now or hereafter amended, or any other law to
the contrary, the Governor may, during any fiscal year
through January 10, 2011, from time to time direct the
State Treasurer and Comptroller to transfer a
specified sum not exceeding 10% of the revenues to be
deposited into the Bank and Trust Company Fund during
that fiscal year from that Fund to the General Revenue
Fund in order to help defray the State's operating
costs for the fiscal year. Notwithstanding provisions
in the State Finance Act, as now or hereafter amended,
or any other law to the contrary, the total sum
transferred during any fiscal year through January 10,
2011, from the Bank and Trust Company Fund to the
General Revenue Fund pursuant to this provision shall
not exceed during any fiscal year 10% of the revenues
to be deposited into the Bank and Trust Company Fund
during that fiscal year. The State Treasurer and
Comptroller shall transfer the amounts designated
under this Section as soon as may be practicable after
receiving the direction to transfer from the Governor.
(d-1) Adequate funds shall be available in the Bank
and Trust Company Fund to permit the timely payment of

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administration expenses. In each fiscal year the total
administration expenses shall be deducted from the
total fees collected by the Commissioner and the
remainder transferred into the Cash Flow Reserve
Account, unless the balance of the Cash Flow Reserve
Account prior to the transfer equals or exceeds
one-fourth of the total initial appropriations from
the Bank and Trust Company Fund for the subsequent
year, in which case the remainder shall be credited to
State banks and foreign banking corporations and
applied against their fees for the subsequent year. The
amount credited to each State bank and foreign banking
corporation shall be in the same proportion as the Call
Report Fees paid by each for the year bear to the total
Call Report Fees collected for the year. If, after a
transfer to the Cash Flow Reserve Account is made or if
no remainder is available for transfer, the balance of
the Cash Flow Reserve Account is less than one-fourth
of the total initial appropriations for the subsequent
year and the amount transferred is less than 5% of the
total Call Report Fees for the year, additional amounts
needed to make the transfer equal to 5% of the total
Call Report Fees for the year shall be apportioned
amongst, assessed upon, and paid by the State banks and
foreign banking corporations in the same proportion
that the Call Report Fees of each, respectively, for

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the year bear to the total Call Report Fees collected
for the year. The additional amounts assessed shall be
transferred into the Cash Flow Reserve Account. For
purposes of this paragraph (d-1), the calculation of
the fees collected by the Commissioner shall exclude
the receivership fees provided for in Section 5-10 of
the Corporate Fiduciary Act.
(e) The Commissioner may upon request certify to
any public record in his keeping and shall have
authority to levy a reasonable charge for issuing
certifications of any public record in his keeping.
(f) In addition to fees authorized elsewhere in
this Act, the Commissioner may, in connection with a
review, approval, or provision of a service, levy a
reasonable charge to recover the cost of the review,
approval, or service.
(4) Nothing contained in this Act shall be construed to
limit the obligation relative to examinations and reports
of any State bank, deposits in which are to any extent
insured by the United States or any agency thereof, nor to
limit in any way the powers of the Commissioner with
reference to examinations and reports of that bank.
(5) The nature and condition of the assets in or
investment of any bonus, pension, or profit sharing plan
for officers or employees of every State bank or, after May
31, 1997, branch of an out-of-state bank shall be deemed to

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be included in the affairs of that State bank or branch of
an out-of-state bank subject to examination by the
Commissioner under the provisions of subsection (2) of this
Section, and if the Commissioner shall find from an
examination that the condition of or operation of the
investments or assets of the plan is unlawful, fraudulent,
or unsafe, or that any trustee has abused his trust, the
Commissioner shall, if the situation so found by the
Commissioner shall not be corrected to his satisfaction
within 60 days after the Commissioner has given notice to
the board of directors of the State bank or out-of-state
bank of his findings, report the facts to the Attorney
General who shall thereupon institute proceedings against
the State bank or out-of-state bank, the board of directors
thereof, or the trustees under such plan as the nature of
the case may require.
(6) The Commissioner shall have the power:
(a) To promulgate reasonable rules for the purpose
of administering the provisions of this Act.
(a-5) To impose conditions on any approval issued
by the Commissioner if he determines that the
conditions are necessary or appropriate. These
conditions shall be imposed in writing and shall
continue in effect for the period prescribed by the
Commissioner.
(b) To issue orders against any person, if the

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Commissioner has reasonable cause to believe that an
unsafe or unsound banking practice has occurred, is
occurring, or is about to occur, if any person has
violated, is violating, or is about to violate any law,
rule, or written agreement with the Commissioner, or
for the purpose of administering the provisions of this
Act and any rule promulgated in accordance with this
Act.
(b-1) To enter into agreements with a bank
establishing a program to correct the condition of the
bank or its practices.
(c) To appoint hearing officers to execute any of
the powers granted to the Commissioner under this
Section for the purpose of administering this Act and
any rule promulgated in accordance with this Act and
otherwise to authorize, in writing, an officer or
employee of the Office of Banks and Real Estate to
exercise his powers under this Act.
(d) To subpoena witnesses, to compel their
attendance, to administer an oath, to examine any
person under oath, and to require the production of any
relevant books, papers, accounts, and documents in the
course of and pursuant to any investigation being
conducted, or any action being taken, by the
Commissioner in respect of any matter relating to the
duties imposed upon, or the powers vested in, the

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Commissioner under the provisions of this Act or any
rule promulgated in accordance with this Act.
(e) To conduct hearings.
(7) Whenever, in the opinion of the Secretary, any
director, officer, employee, or agent of a State bank or
any subsidiary or bank holding company of the bank or,
after May 31, 1997, of any branch of an out-of-state bank
or any subsidiary or bank holding company of the bank shall
have violated any law, rule, or order relating to that bank
or any subsidiary or bank holding company of the bank,
shall have obstructed or impeded any examination or
investigation by the Secretary, shall have engaged in an
unsafe or unsound practice in conducting the business of
that bank or any subsidiary or bank holding company of the
bank, or shall have violated any law or engaged or
participated in any unsafe or unsound practice in
connection with any financial institution or other
business entity such that the character and fitness of the
director, officer, employee, or agent does not assure
reasonable promise of safe and sound operation of the State
bank, the Secretary may issue an order of removal. If, in
the opinion of the Secretary, any former director, officer,
employee, or agent of a State bank or any subsidiary or
bank holding company of the bank, prior to the termination
of his or her service with that bank or any subsidiary or
bank holding company of the bank, violated any law, rule,

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or order relating to that State bank or any subsidiary or
bank holding company of the bank, obstructed or impeded any
examination or investigation by the Secretary, engaged in
an unsafe or unsound practice in conducting the business of
that bank or any subsidiary or bank holding company of the
bank, or violated any law or engaged or participated in any
unsafe or unsound practice in connection with any financial
institution or other business entity such that the
character and fitness of the director, officer, employee,
or agent would not have assured reasonable promise of safe
and sound operation of the State bank, the Secretary may
issue an order prohibiting that person from further service
with a bank or any subsidiary or bank holding company of
the bank as a director, officer, employee, or agent. An
order issued pursuant to this subsection shall be served
upon the director, officer, employee, or agent. A copy of
the order shall be sent to each director of the bank
affected by registered mail. A copy of the order shall also
be served upon the bank of which he is a director, officer,
employee, or agent, whereupon he shall cease to be a
director, officer, employee, or agent of that bank. The
Secretary may institute a civil action against the
director, officer, or agent of the State bank or, after May
31, 1997, of the branch of the out-of-state bank against
whom any order provided for by this subsection (7) of this
Section 48 has been issued, and against the State bank or,

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after May 31, 1997, out-of-state bank, to enforce
compliance with or to enjoin any violation of the terms of
the order. Any person who has been the subject of an order
of removal or an order of prohibition issued by the
Secretary under this subsection or Section 5-6 of the
Corporate Fiduciary Act may not thereafter serve as
director, officer, employee, or agent of any State bank or
of any branch of any out-of-state bank, or of any corporate
fiduciary, as defined in Section 1-5.05 of the Corporate
Fiduciary Act, or of any other entity that is subject to
licensure or regulation by the Division of Banking unless
the Secretary has granted prior approval in writing.
For purposes of this paragraph (7), "bank holding
company" has the meaning prescribed in Section 2 of the
Illinois Bank Holding Company Act of 1957.
(7.5) Notwithstanding the provisions of this Section,
the Secretary shall not:
(1) issue an order against a State bank or any
subsidiary organized under this Act for unsafe or
unsound banking practices solely because the entity
provides or has provided financial services to a
cannabis-related legitimate business;
(2) prohibit, penalize, or otherwise discourage a
State bank or any subsidiary from providing financial
services to a cannabis-related legitimate business
solely because the entity provides or has provided

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financial services to a cannabis-related legitimate
business;
(3) recommend, incentivize, or encourage a state
bank or any subsidiary not to offer financial services
to an account holder or to downgrade or cancel the
financial services offered to an account holder solely
because:
(A) the account holder is a manufacturer or
producer, or is the owner, operator, or employee of
a cannabis-related legitimate business;
(B) the account holder later becomes an owner
or operator of a cannabis-related legitimate
business; or
(C) the State bank or any subsidiary was not
aware that the account holder is the owner or
operator of a cannabis-related legitimate
business; and
(4) take any adverse or corrective supervisory
action on a loan made to an owner or operator of:
(A) a cannabis-related legitimate business
solely because the owner or operator owns or
operates a cannabis-related legitimate business;
or
(B) real estate or equipment that is leased to
a cannabis-related legitimate business solely
because the owner or operator of the real estate or

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equipment leased the equipment or real estate to a
cannabis-related legitimate business.
(8) The Commissioner may impose civil penalties of up
to $100,000 against any person for each violation of any
provision of this Act, any rule promulgated in accordance
with this Act, any order of the Commissioner, or any other
action which in the Commissioner's discretion is an unsafe
or unsound banking practice.
(9) The Commissioner may impose civil penalties of up
to $100 against any person for the first failure to comply
with reporting requirements set forth in the report of
examination of the bank and up to $200 for the second and
subsequent failures to comply with those reporting
requirements.
(10) All final administrative decisions of the
Commissioner hereunder shall be subject to judicial review
pursuant to the provisions of the Administrative Review
Law. For matters involving administrative review, venue
shall be in either Sangamon County or Cook County.
(11) The endowment fund for the Illinois Bank
Examiners' Education Foundation shall be administered as
follows:
(a) (Blank).
(b) The Foundation is empowered to receive
voluntary contributions, gifts, grants, bequests, and
donations on behalf of the Illinois Bank Examiners'

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Education Foundation from national banks and other
persons for the purpose of funding the endowment of the
Illinois Bank Examiners' Education Foundation.
(c) The aggregate of all special educational fees
collected by the Secretary and property received by the
Secretary on behalf of the Illinois Bank Examiners'
Education Foundation under this subsection (11) on or
after June 30, 1986, shall be either (i) promptly paid
after receipt of the same, accompanied by a detailed
statement thereof, into the State Treasury and shall be
set apart in a special fund to be known as "The
Illinois Bank Examiners' Education Fund" to be
invested by either the Treasurer of the State of
Illinois in the Public Treasurers' Investment Pool or
in any other investment he is authorized to make or by
the Illinois State Board of Investment as the State
Banking Board of Illinois may direct or (ii) deposited
into an account maintained in a commercial bank or
corporate fiduciary in the name of the Illinois Bank
Examiners' Education Foundation pursuant to the order
and direction of the Board of Trustees of the Illinois
Bank Examiners' Education Foundation.
(12) (Blank).
(13) The Secretary may borrow funds from the General
Revenue Fund on behalf of the Bank and Trust Company Fund
if the Director of Banking certifies to the Governor that

HB2980 - 23 - LRB101 09589 JRG 54687 b
there is an economic emergency affecting banking that
requires a borrowing to provide additional funds to the
Bank and Trust Company Fund. The borrowed funds shall be
paid back within 3 years and shall not exceed the total
funding appropriated to the Agency in the previous year.
(14) In addition to the fees authorized in this Act,
the Secretary may assess reasonable receivership fees
against any State bank that does not maintain insurance
with the Federal Deposit Insurance Corporation. All fees
collected under this subsection (14) shall be paid into the
Non-insured Institutions Receivership account in the Bank
and Trust Company Fund, as established by the Secretary.
The fees assessed under this subsection (14) shall provide
for the expenses that arise from the administration of the
receivership of any such institution required to pay into
the Non-insured Institutions Receivership account, whether
pursuant to this Act, the Corporate Fiduciary Act, the
Foreign Banking Office Act, or any other Act that requires
payments into the Non-insured Institutions Receivership
account. The Secretary may establish by rule a reasonable
manner of assessing fees under this subsection (14).
(Source: P.A. 99-39, eff. 1-1-16; 100-22, eff. 1-1-18.)
(205 ILCS 5/48.3) (from Ch. 17, par. 360.2)
Sec. 48.3. Disclosure of reports of examinations and
confidential supervisory information; limitations.

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(a) Any report of examination, visitation, or
investigation prepared by the Secretary under this Act, the
Electronic Fund Transfer Act, the Corporate Fiduciary Act, the
Illinois Bank Holding Company Act of 1957, and the Foreign
Banking Office Act, any report of examination, visitation, or
investigation prepared by the state regulatory authority of
another state that examines a branch of an Illinois State bank
in that state, any document or record prepared or obtained in
connection with or relating to any examination, visitation, or
investigation, and any record prepared or obtained by the
Secretary to the extent that the record summarizes or contains
information derived from any report, document, or record
described in this subsection shall be deemed "confidential
supervisory information". Confidential supervisory information
shall not include any information or record routinely prepared
by a bank or other financial institution and maintained in the
ordinary course of business or any information or record that
is required to be made publicly available pursuant to State or
federal law or rule. Confidential supervisory information
shall be the property of the Secretary and shall only be
disclosed under the circumstances and for the purposes set
forth in this Section.
The Secretary may disclose confidential supervisory
information only under the following circumstances:
(1) The Secretary may furnish confidential supervisory
information to the Board of Governors of the Federal

HB2980 - 25 - LRB101 09589 JRG 54687 b
Reserve System, the federal reserve bank of the federal
reserve district in which the State bank is located or in
which the parent or other affiliate of the State bank is
located, any official or examiner thereof duly accredited
for the purpose, or any other state regulator, federal
regulator, or in the case of a foreign bank possessing a
certificate of authority pursuant to the Foreign Banking
Office Act or a license pursuant to the Foreign Bank
Representative Office Act, the bank regulator in the
country where the foreign bank is chartered, that the
Secretary determines to have an appropriate regulatory
interest. Nothing contained in this Act shall be construed
to limit the obligation of any member State bank to comply
with the requirements relative to examinations and reports
of the Federal Reserve Act and of the Board of Governors of
the Federal Reserve System or the federal reserve bank of
the federal reserve district in which the bank is located,
nor to limit in any way the powers of the Secretary with
reference to examinations and reports.
(2) The Secretary may furnish confidential supervisory
information to the United States, any agency thereof that
has insured a bank's deposits in whole or in part, or any
official or examiner thereof duly accredited for the
purpose. Nothing contained in this Act shall be construed
to limit the obligation relative to examinations and
reports of any State bank, deposits in which are to any

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extent insured by the United States, any agency thereof,
nor to limit in any way the powers of the Secretary with
reference to examination and reports of such bank.
(2.5) The Secretary may furnish confidential
supervisory information to a Federal Home Loan Bank in
connection with any bank that is a member of the Federal
Home Loan Bank or in connection with any application by the
bank before the Federal Home Loan Bank. The confidential
supervisory information shall remain the property of the
Secretary and may not be further disclosed without the
Secretary's permission.
(3) The Secretary may furnish confidential supervisory
information to the appropriate law enforcement authorities
when the Secretary reasonably believes a bank, which the
Secretary has caused to be examined, has been a victim of a
crime.
(4) The Secretary may furnish confidential supervisory
information relating to a bank or other financial
institution, which the Secretary has caused to be examined,
to be sent to the administrator of the Revised Uniform
Unclaimed Property Act.
(5) The Secretary may furnish confidential supervisory
information relating to a bank or other financial
institution, which the Secretary has caused to be examined,
relating to its performance of obligations under the
Illinois Income Tax Act and the Illinois Estate and

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Generation-Skipping Transfer Tax Act to the Illinois
Department of Revenue.
(6) The Secretary may furnish confidential supervisory
information relating to a bank or other financial
institution, which the Secretary has caused to be examined,
under the federal Currency and Foreign Transactions
Reporting Act, Title 31, United States Code, Section 1051
et seq.
(6.5) The Secretary may furnish confidential
supervisory information to any other agency or entity that
the Secretary determines to have a legitimate regulatory
interest.
(7) The Secretary may furnish confidential supervisory
information under any other statute that by its terms or by
regulations promulgated thereunder requires the disclosure
of financial records other than by subpoena, summons,
warrant, or court order.
(8) At the request of the affected bank or other
financial institution, the Secretary may furnish
confidential supervisory information relating to a bank or
other financial institution, which the Secretary has
caused to be examined, in connection with the obtaining of
insurance coverage or the pursuit of an insurance claim for
or on behalf of the bank or other financial institution;
provided that, when possible, the Secretary shall disclose
only relevant information while maintaining the

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confidentiality of financial records not relevant to such
insurance coverage or claim and, when appropriate, may
delete identifying data relating to any person or
individual.
(9) The Secretary may furnish a copy of a report of any
examination performed by the Secretary of the condition and
affairs of any electronic data processing entity to the
banks serviced by the electronic data processing entity.
(9.5) The Secretary may furnish confidential
supervisory information relating to a bank or other
financial institution providing financial services to
cannabis-related businesses, limited to the name, contact
information, and such other information as the Secretary
determines is prudent, to the Illinois State Treasurer.
(10) In addition to the foregoing circumstances, the
Secretary may, but is not required to, furnish confidential
supervisory information under the same circumstances
authorized for the bank or financial institution pursuant
to subsection (b) of this Section, except that the
Secretary shall provide confidential supervisory
information under circumstances described in paragraph (3)
of subsection (b) of this Section only upon the request of
the bank or other financial institution.
(b) A bank or other financial institution or its officers,
agents, and employees may disclose confidential supervisory
information only under the following circumstances:

HB2980 - 29 - LRB101 09589 JRG 54687 b
(1) to the board of directors of the bank or other
financial institution, as well as the president,
vice-president, cashier, and other officers of the bank or
other financial institution to whom the board of directors
may delegate duties with respect to compliance with
recommendations for action, and to the board of directors
of a bank holding company that owns at least 80% of the
outstanding stock of the bank or other financial
institution;
(2) to attorneys for the bank or other financial
institution and to a certified public accountant engaged by
the State bank or financial institution to perform an
independent audit provided that the attorney or certified
public accountant shall not permit the confidential
supervisory information to be further disseminated;
(3) to any person who seeks to acquire a controlling
interest in, or who seeks to merge with, the bank or
financial institution, provided that all attorneys,
certified public accountants, officers, agents, or
employees of that person shall agree to be bound to respect
the confidentiality of the confidential supervisory
information and to not further disseminate the information
therein contained;
(3.5) to a Federal Home Loan Bank of which it is a
member;
(4) (blank);

HB2980 - 30 - LRB101 09589 JRG 54687 b
(4.5) to any attorney, accountant, consultant, or
other professional as needed to comply with any enforcement
action issued by the Secretary; or
(5) to the bank's insurance company in relation to an
insurance claim or the effort by the bank to procure
insurance coverage, provided that, when possible, the bank
shall disclose only information that is relevant to the
insurance claim or that is necessary to procure the
insurance coverage, while maintaining the confidentiality
of financial information pertaining to customers. When
appropriate, the bank may delete identifying data relating
to any person.
The disclosure of confidential supervisory information by
a bank or other financial institution pursuant to this
subsection (b) and the disclosure of information to the
Secretary or other regulatory agency in connection with any
examination, visitation, or investigation shall not constitute
a waiver of any legal privilege otherwise available to the bank
or other financial institution with respect to the information.
(c) (1) Notwithstanding any other provision of this Act or
any other law, confidential supervisory information shall be
the property of the Secretary and shall be privileged from
disclosure to any person except as provided in this Section. No
person in possession of confidential supervisory information
may disclose that information for any reason or under any
circumstances not specified in this Section without the prior

HB2980 - 31 - LRB101 09589 JRG 54687 b
authorization of the Secretary. Any person upon whom a demand
for production of confidential supervisory information is
made, whether by subpoena, order, or other judicial or
administrative process, must withhold production of the
confidential supervisory information and must notify the
Secretary of the demand, at which time the Secretary is
authorized to intervene for the purpose of enforcing the
limitations of this Section or seeking the withdrawal or
termination of the attempt to compel production of the
confidential supervisory information.
(2) Any request for discovery or disclosure of confidential
supervisory information, whether by subpoena, order, or other
judicial or administrative process, shall be made to the
Secretary, and the Secretary shall determine within 15 days
whether to disclose the information pursuant to procedures and
standards that the Secretary shall establish by rule. If the
Secretary determines that such information will not be
disclosed, the Secretary's decision shall be subject to
judicial review under the provisions of the Administrative
Review Law, and venue shall be in either Sangamon County or
Cook County.
(3) Any court order that compels disclosure of confidential
supervisory information may be immediately appealed by the
Secretary, and the order shall be automatically stayed pending
the outcome of the appeal.
(d) If any officer, agent, attorney, or employee of a bank

HB2980 - 32 - LRB101 09589 JRG 54687 b
or financial institution knowingly and willfully furnishes
confidential supervisory information in violation of this
Section, the Secretary may impose a civil monetary penalty up
to $1,000 for the violation against the officer, agent,
attorney, or employee.
(Source: P.A. 100-22, eff 1-1-18; 100-64, eff. 8-11-17;
100-863, eff. 8-14-18; 100-888, eff. 8-14-18.)
Section 10. The Illinois Credit Union Act is amended by
changing Sections 8 and 9.1 as follows:
(205 ILCS 305/8) (from Ch. 17, par. 4409)
Sec. 8. Secretary's powers and duties. Credit unions are
regulated by the Department. The Secretary in executing the
powers and discharging the duties vested by law in the
Department has the following powers and duties:
(1) To exercise the rights, powers and duties set forth
in this Act or any related Act. The Director shall oversee
the functions of the Division and report to the Secretary,
with respect to the Director's exercise of any of the
rights, powers, and duties vested by law in the Secretary
under this Act. All references in this Act to the Secretary
shall be deemed to include the Director, as a person
authorized by the Secretary or this Act to assume
responsibility for the oversight of the functions of the
Department relating to the regulatory supervision of

HB2980 - 33 - LRB101 09589 JRG 54687 b
credit unions under this Act.
(2) To prescribe rules and regulations for the
administration of this Act. The provisions of the Illinois
Administrative Procedure Act are hereby expressly adopted
and incorporated herein as though a part of this Act, and
shall apply to all administrative rules and procedures of
the Department under this Act.
(3) To direct and supervise all the administrative and
technical activities of the Department including the
employment of a Credit Union Supervisor who shall have
knowledge in the theory and practice of, or experience in,
the operations or supervision of financial institutions,
preferably credit unions, and such other persons as are
necessary to carry out his functions. The Secretary shall
ensure that all examiners appointed or assigned to examine
the affairs of State-chartered credit unions possess the
necessary training and continuing education to effectively
execute their jobs.
(4) To issue cease and desist orders when in the
opinion of the Secretary, a credit union is engaged or has
engaged, or the Secretary has reasonable cause to believe
the credit union is about to engage, in an unsafe or
unsound practice, or is violating or has violated or the
Secretary has reasonable cause to believe is about to
violate a law, rule or regulation or any condition imposed
in writing by the Department.

HB2980 - 34 - LRB101 09589 JRG 54687 b
(5) To suspend from office and to prohibit from further
participation in any manner in the conduct of the affairs
of his credit union any director, officer or committee
member who has committed any violation of a law, rule,
regulation or of a cease and desist order or who has
engaged or participated in any unsafe or unsound practice
in connection with the credit union or who has committed or
engaged in any act, omission, or practice which constitutes
a breach of his fiduciary duty as such director, officer or
committee member, when the Secretary has determined that
such action or actions have resulted or will result in
substantial financial loss or other damage that seriously
prejudices the interests of the members.
(6) To assess a civil penalty against a credit union
provided that:
(A) the Secretary reasonably determines, based on
objective facts and an accurate assessment of
applicable legal standards, that the credit union has:
(i) committed a violation of this Act, any rule
adopted in accordance with this Act, or any order
of the Secretary issued pursuant to his or her
authority under this Act; or
(ii) engaged or participated in any unsafe or
unsound practice;
(B) before a civil penalty is assessed under this
item (6), the Secretary must make the further

HB2980 - 35 - LRB101 09589 JRG 54687 b
reasonable determination, based on objective facts and
an accurate assessment of applicable legal standards,
that the credit union's action constituting a
violation under subparagraph (i) of paragraph (A) of
item (6) or an unsafe and unsound practice under
subparagraph (ii) of paragraph (A) of item (6):
(i) directly resulted in a substantial and
material financial loss or created a reasonable
probability that a substantial and material
financial loss will directly result; or
(ii) constituted willful misconduct or a
material breach of fiduciary duty of any director,
officer, or committee member of the credit union;
Material financial loss, as referenced in this
paragraph (B), shall be assessed in light of
surrounding circumstances and the relative size and
nature of the financial loss or probable financial
loss. Certain benchmarks shall be used in determining
whether financial loss is material, such as a
percentage of total assets or total gross income for
the immediately preceding 12-month period. Absent
compelling and extraordinary circumstances, no civil
penalty shall be assessed, unless the financial loss or
probable financial loss is equal to or greater than
either 1% of the credit union's total assets for the
immediately preceding 12-month period, or 1% of the

HB2980 - 36 - LRB101 09589 JRG 54687 b
credit union's total gross income for the immediately
preceding 12-month period, whichever is less;
(C) before a civil penalty is assessed under this
item (6), the credit union must be expressly advised in
writing of the:
(i) specific violation that could subject it
to a penalty under this item (6); and
(ii) the specific remedial action to be taken
within a specific and reasonable time frame to
avoid imposition of the penalty;
(D) Civil penalties assessed under this item (6)
shall be remedial, not punitive, and reasonably
tailored to ensure future compliance by the credit
union with the provisions of this Act and any rules
adopted pursuant to this Act;
(E) a credit union's failure to take timely
remedial action with respect to the specific violation
may result in the issuance of an order assessing a
civil penalty up to the following maximum amount, based
upon the total assets of the credit union:
(i) Credit unions with assets of less than $10
million................................................$1,000
(ii) Credit unions with assets of at least $10
million and less than $50 million......................$2,500
(iii) Credit unions with assets of at least $50
million and less than $100 million.....................$5,000

HB2980 - 37 - LRB101 09589 JRG 54687 b
(iv) Credit unions with assets of at least $100
million and less than $500 million....................$10,000
(v) Credit unions with assets of at least $500
million and less than $1 billion......................$25,000
(vi) Credit unions with assets of $1 billion
and greater.....................................$50,000; and
(F) an order assessing a civil penalty under this
item (6) shall take effect upon service of the order,
unless the credit union makes a written request for a
hearing under 38 IL. Adm. Code 190.20 of the
Department's rules for credit unions within 90 days
after issuance of the order; in that event, the order
shall be stayed until a final administrative order is
entered.
This item (6) shall not apply to violations separately
addressed in rules as authorized under item (7) of this
Section.
(7) Except for the fees established in this Act, to
prescribe, by rule and regulation, fees and penalties for
preparing, approving, and filing reports and other
documents; furnishing transcripts; holding hearings;
investigating applications for permission to organize,
merge, or convert; failure to maintain accurate books and
records to enable the Department to conduct an examination;
and taking supervisory actions.
(8) To destroy, in his discretion, any or all books and

HB2980 - 38 - LRB101 09589 JRG 54687 b
records of any credit union in his possession or under his
control after the expiration of three years from the date
of cancellation of the charter of such credit unions.
(9) To make investigations and to conduct research and
studies and to publish some of the problems of persons in
obtaining credit at reasonable rates of interest and of the
methods and benefits of cooperative saving and lending for
such persons.
(10) To authorize, foster or establish experimental,
developmental, demonstration or pilot projects by public
or private organizations including credit unions which:
(a) promote more effective operation of credit
unions so as to provide members an opportunity to use
and control their own money to improve their economic
and social conditions; or
(b) are in the best interests of credit unions,
their members and the people of the State of Illinois.
(11) To cooperate in studies, training or other
administrative activities with, but not limited to, the
NCUA, other state credit union regulatory agencies and
industry trade associations in order to promote more
effective and efficient supervision of Illinois chartered
credit unions.
(12) Notwithstanding the provisions of this Section,
the Secretary shall not:
(1) issue an order against a credit union organized

HB2980 - 39 - LRB101 09589 JRG 54687 b
under this Act for unsafe or unsound banking practices
solely because the entity provides or has provided
financial services to a cannabis-related legitimate
business;
(2) prohibit, penalize, or otherwise discourage a
credit union from providing financial services to a
cannabis-related legitimate business solely because
the entity provides or has provided financial services
to a cannabis related legitimate business;
(3) recommend, incentivize, or encourage a credit
union not to offer financial services to an account
holder or to downgrade or cancel the financial services
offered to an account holder solely because:
(A) the account holder is a manufacturer or
producer, or is the owner, operator, or employee of
a cannabis-related legitimate business;
(B) the account holder later becomes an owner
or operator of a cannabis-related legitimate
business; or
(C) the credit union was not aware that the
account holder is the owner or operator of a
cannabis-related legitimate business; and
(4) take any adverse or corrective supervisory
action on a loan made to an owner or operator of:
(A) a cannabis-related legitimate business
solely because the owner or operator owns or

HB2980 - 40 - LRB101 09589 JRG 54687 b
operates a cannabis-related legitimate business;
or
(B) real estate or equipment that is leased to
a cannabis-related legitimate business solely
because the owner or operator of the real estate or
equipment leased the equipment or real estate to a
cannabis-related legitimate business.
(Source: P.A. 97-133, eff. 1-1-12; 98-400, eff. 8-16-13.)
(205 ILCS 305/9.1)
Sec. 9.1. Disclosures of reports of examinations and
confidential supervisory information; limitations.
(1) Any report of examination, visitation, or
investigation prepared by the Secretary under this Act or by
the state regulatory authority charged with enforcing the
Electronic Fund Transfer Act or the Corporate Fiduciary Act or
by the state regulatory authority of another state that
examines an office of an Illinois credit union in that state,
any document or record prepared or obtained in connection with
or relating to any examination, visitation, or investigation,
and any record prepared or obtained by the Secretary to the
extent that the record summarizes or contains information
derived from any report, document, or record described in this
subsection shall be deemed "confidential supervisory
information". Confidential supervisory information shall not
include any information or record routinely prepared by a

HB2980 - 41 - LRB101 09589 JRG 54687 b
credit union and maintained in the ordinary course of business
or any information or record that is required to be made
publicly available pursuant to State or federal law or rule.
(2) Confidential supervisory information is privileged
from discovery and shall only be disclosed under the
circumstances and for the purposes set forth in this Section.
(3) Relevant confidential supervisory information may be
disclosed under a statute that by its terms or by rules
promulgated thereunder requires the disclosure of confidential
supervisory information other than by subpoena, summons,
warrant, or court order; to the appropriate law enforcement
authorities when the Secretary or the credit union reasonably
believes the credit union, which the Secretary has caused to be
examined, has been a victim of a crime; to other agencies or
entities having a legitimate regulatory interest, including,
but not limited to, a Federal Home Loan Bank; to the credit
union's board, officers, retained professionals, and insurers;
to persons seeking to merge with or purchase all or part of the
assets of the credit union; and where disclosure is otherwise
required for the benefit of the credit union. Disclosure of
confidential supervisory information to these persons does not
constitute a waiver of the legal privilege otherwise available
with respect to the information.
(4) A person to whom confidential supervisory information
is disclosed shall not further disseminate confidential
supervisory information.

HB2980 - 42 - LRB101 09589 JRG 54687 b
(4.5) Confidential supervisory information relating to a
credit union providing financial services to cannabis-related
businesses, limited to the name, contact information and such
other information as the Secretary determines is prudent, may
be sent to the Illinois State Treasurer.
(5) (a) Any person upon whom a demand for production of
confidential supervisory information is made, whether by
subpoena, order, or other judicial or administrative process,
must withhold production of the confidential supervisory
information and must notify the Secretary of the demand, at
which time the Secretary is authorized to intervene for the
purpose of enforcing the limitations of this Section or seeking
the withdrawal or termination of the attempt to compel
production of the confidential supervisory information.
(b) Any request for discovery or disclosure of confidential
supervisory information, whether by subpoena, order, or other
judicial or administrative process, shall be made to the
Secretary, and the Secretary shall determine within 15 days
whether to disclose the information pursuant to procedures and
standards that the Secretary shall establish by rule. If the
Secretary determines that such information will not be
disclosed, the Secretary's decision shall be subject to
judicial review under the provisions of the Administrative
Review Law, and venue shall be in either Sangamon County or
Cook County.
(c) Any court order that compels disclosure of confidential

HB2980 - 43 - LRB101 09589 JRG 54687 b
supervisory information may be immediately appealed by the
Secretary and the order shall be automatically stayed pending
the outcome of the appeal.
(Source: P.A. 100-64, eff. 8-11-17.)
Section 99. Effective date. This Act takes effect upon
becoming law.