Bill Amendment: IL HB3479 | 2023-2024 | 103rd General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: FINANCIAL REGULATION-VARIOUS

Status: 2025-01-07 - Session Sine Die [HB3479 Detail]

Download: Illinois-2023-HB3479-House_Amendment_001.html

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Rep. Mark L. Walker

Filed: 3/21/2023

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AMENDMENT TO HOUSE BILL 3479
AMENDMENT NO. ______. Amend House Bill 3479 on page 14,
line 8, after "(7)", by inserting "or (16)"; and
on page 23, line 2, by deleting "that"; and
on page 25, line 7, by deleting "next"; and
on page 26, line 21, by deleting "next"; and
on page 31, line 16, by replacing "FBI" with "Federal Bureau of
Investigation"; and
on page 32, line 19, by replacing "Illinois" with "the
Department"; and
on page 51, line 21, by replacing "Between" with "between";
and

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on page 57, line 10, by replacing "after" with "of"; and
on page 58, by deleting lines 14 through 23; and
on page 58, line 24, by replacing "(c)" with "(b)"; and
on page 59, immediately below line 23, by inserting the
following:
"(c) This Section does not apply to:
(1) money received for transmission subject to the
federal Remittance Rule, 12 CFR Part 1005, Subpart B, as
amended or recodified from time to time;
(2) money received for transmission pursuant to a
written agreement between the licensee and payee to
process payments for goods or services provided by the
payee;
(3) payroll processing services; or
(4) as authorized in the Secretary's sole
discretion."; and
by replacing line 10 on page 68 through line 6 on page 69 with
the following:
"(i) the original letter of credit, including
any amendments; and
(ii) A written statement from the beneficiary

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stating that any of the following events have
occurred:
(I) the filing of a petition by or against
the licensee under the United States
Bankruptcy Code, 11 U.S.C. Sections 101
through 110, as amended or recodified from
time to time, for bankruptcy or
reorganization;
(II) the filing of a petition by or
against the licensee for receivership, or the
commencement of any other judicial or
administrative proceeding for its dissolution
or reorganization;
(III) the seizure of assets of a licensee
by the Secretary pursuant to an emergency
order issued in accordance with applicable
law, on the basis of an action, violation, or
condition that has caused or is likely to
cause the insolvency of the licensee; or
(IV) the beneficiary has received notice
of expiration or nonextension of a letter of
credit and the licensee failed to demonstrate
to the satisfaction of the beneficiary that
the licensee will maintain permissible
investments in accordance with subsection (a)
of Section 10-3 upon the expiration or

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nonextension of the letter of credit."; and
on page 74, line 7, by replacing "willful blindness" with
"grossly negligent inattention to its legal obligations"; and
on page 78, immediately below line 11, by inserting the
following:
"Section 11-4. Orders to cease and desist; civil penalties.
(a) If the Secretary determines that a licensee, an
authorized delegate, or any other person has engaged or is
engaged in practices contrary to this Act, the rules adopted
under this Act, or an order issued under this Act, the
Secretary may issue an order requiring the licensee or
authorized delegate to cease and desist from the violation.
The order becomes effective upon service of it upon the
licensee or authorized delegate.
(b) The Secretary may issue an order against a licensee to
cease and desist from providing money transmission through an
authorized delegate that is the subject of a separate order by
the Secretary.
(c) The Secretary may, in addition to or without the
issuance of a cease and desist order, assess a penalty of up to
$1,000 against a licensee or other person for each violation
of this Act, the rules adopted under this Act, or an order
issued under this Act as set forth in Section 11-6. The
issuance of an order under this Section shall not be a

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prerequisite to the taking of any action by the Secretary
under this Section or any other Section of this Act.
(d) The Secretary shall issue a formal written notice of
the cease and desist order, setting forth the specific reasons
for the order and serve the licensee or the authorized
delegate, either personally or by certified mail. Service by
certified mail shall be deemed completed when the notice is
deposited in United States mail."; and
on page 81, line 20, by replacing "they conflict" with "this
Act conflicts"; and
on page 81, line 21, by replacing "establish" with "this Act
establishes"; and
on page 84, by replacing lines 18 through 21 with the
following:
""Confidential supervisory information" means information
or documents obtained by employees, agents, or representatives
of the Department in the course of any examination,
investigation, audit, visit, registration, certification,
review, licensing, or any other regulatory or supervisory
activity pursuant to this Act, and any record prepared or
obtained by the Department to the extent that the record
summarizes or contains information derived from any report,
document, or record described in this Act."; and

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on page 86, immediately below line 11, by inserting the
following:
"Digital asset business activity" does not include the
development and dissemination of software in and of itself.";
and
on page 95, lines 21 through 23, by replacing "Financial
Protection Fund" each time it appears with "Digital Assets
Regulation Fund"; and
on page 96, lines 5 and 6, by replacing "Financial Protection
Fund" with "Digital Assets Regulation Fund"; and
on page 106, lines 3 through 5, by deleting ". The telephone
line shall be operative 24 hours per day, Monday through
Sunday"; and
on page 112, line 14, by replacing "State" with "state"; and
on page 112, by deleting lines 22 through 26; and
on page 121, line 3, after "Regulations,", by inserting "or a
charter as a New York State limited purpose trust company with
approval to conduct virtual currency business under the New
York Banking Law,"; and

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on page 121, line 3, after "license", by inserting "or
approval"; and
on page 123, line 1, by replacing "State" with "state"; and
on page 131, line 5, by replacing "State" with "state"; and
on page 142, line 16, by replacing "Article" with "Section";
and
on page 147, line 15, after "under", by inserting "this"; and
on page 148, lines 12 and 13, by replacing "student loan
servicing transaction" with "digital asset business activity";
and
on page 152, line 2, by replacing "State" with "state"; and
by replacing line 23 on page 153 through line 11 on page 154
with the following:
"(a) Confidential supervisory information shall, unless
made a matter of public record, not be subject to disclosure
under the Freedom of Information Act, and shall only be
subject to disclosure pursuant to subpoena or court order as
provided in subsection (e)."; and

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on page 154, line 17, by replacing "State" with "state"; and
on page 154, by replacing line 20 through line 23 with "under
this Act (1) shall not be subject to disclosure under the
Freedom of Information Act, and (2) to the extent the records
contain confidential supervisory information, shall only be
subject to disclosure pursuant to subpoena or court order as
provided in subsection (e)."; and
on page 155, lines 10 through 14, by replacing "State" each
time it appears with "state"; and
on page 158, lines 6 and 7, by deleting "and any other
financial law administered by the Department"; and
on page 159, line 10, by deleting "; applicability"; and
by deleting line 19 on page 159 through line 2 on page 160; and
on page 160, immediately below line 2, by inserting the
following:
"Section 135-10. Transition period.
(a) A covered person engaging in digital asset business
activity without a license under this Act shall not be
considered in violation of Section 115-5 until January 1,

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2025.
(b) A covered person engaging in digital asset business
activity shall not be considered in violation of Sections
105-5, 105-10, and 105-20 until January 1, 2024.
(c) A covered exchange shall not be considered in
violation of Section 105-15 until January 1, 2025.
(d) Notwithstanding the foregoing, the Department may
adopt rules pursuant to this Act upon this Act becoming law
with such rules not to take effect earlier than January 1,
2024."; and
on page 169, line 20, by replacing "Financial Protection Fund"
with "Digital Assets Regulation Fund"; and
on page 197, line 12, by replacing "like" with "like".