Bill Text: IL SB2023 | 2019-2020 | 101st General Assembly | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Amends the Nurse Practice Act and the Physician Assistant Practice Act of 1987. Provides that violating the Compassionate Use of Medical Cannabis Program Act is grounds for disciplinary action under the Acts. Amends the Compassionate Use of Medical Cannabis Pilot Program Act. Removes the word "Pilot" from the Act's short title and the Compassionate Use of Medical Cannabis Pilot Program. Makes conforming changes throughout the Act and statutes. Replaces the defined term "bona fide physician-patient relationship" with "bona fide health care professional-relationship" and makes conforming changes throughout the Act. Provides that specified maladies are debilitating medical conditions. Refers to certifying health care professionals (rather than physicians) throughout the Act. Provides that a certifying health care professional may not engage in fee splitting as prohibited under the Medical Practice Act of 1987. Provides that nothing in the Act shall preclude a certifying health care professional from referring a patient for health services, including certification, under the Act. Provides that a qualifying patient under the age of 18 shall not be prohibited from having up to 3 (instead of 2) designated caregivers. Provides that the Department of Public Health shall establish procedures to permit qualified veterans to participate in the Opioid Alternative Pilot Program. Provides that any Department-approved quantity waiver process must be made available to qualified veterans. Requires the Department to provide for immediate changes to a registered qualifying patient's designated registered dispensing organization. Provides that the Department of Financial and Professional Regulation shall adopt rules permitting returns, and potential refunds, for damaged or inadequate products. Allows the Department of Financial and Professional Regulation to issue nondisciplinary citations for minor violations which may be accompanied by a civil penalty not to exceed $10,000 per violation and shall contain specified information. Provides that if the licensee does not dispute the matter in the citation with the Department of Financial and Professional Regulation within 30 days after the citation is served, then the citation shall become final and shall not be subject to appeal. Repeals a provision concerning changing a designated dispensing organization. Repeals a provision repealing the Act on July 1, 2020. Makes other changes. Effective immediately.

Spectrum: Moderate Partisan Bill (Democrat 32-7)

Status: (Passed) 2019-08-09 - Public Act . . . . . . . . . 101-0363 [SB2023 Detail]

Download: Illinois-2019-SB2023-Engrossed.html

---

SB2023 Engrossed LRB101 09588 JRG 54686 b
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
Section 48 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

SB2023 Engrossed - 2 - LRB101 09588 JRG 54686 b
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

SB2023 Engrossed - 3 - LRB101 09588 JRG 54686 b
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

SB2023 Engrossed - 4 - LRB101 09588 JRG 54686 b
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

SB2023 Engrossed - 5 - LRB101 09588 JRG 54686 b
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

SB2023 Engrossed - 6 - LRB101 09588 JRG 54686 b
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

SB2023 Engrossed - 7 - LRB101 09588 JRG 54686 b
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

SB2023 Engrossed - 8 - LRB101 09588 JRG 54686 b
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)

SB2023 Engrossed - 9 - LRB101 09588 JRG 54686 b
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

SB2023 Engrossed - 10 - LRB101 09588 JRG 54686 b
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)

SB2023 Engrossed - 11 - LRB101 09588 JRG 54686 b
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

SB2023 Engrossed - 12 - LRB101 09588 JRG 54686 b
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

SB2023 Engrossed - 13 - LRB101 09588 JRG 54686 b
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

SB2023 Engrossed - 14 - LRB101 09588 JRG 54686 b
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

SB2023 Engrossed - 15 - LRB101 09588 JRG 54686 b
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

SB2023 Engrossed - 16 - LRB101 09588 JRG 54686 b
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

SB2023 Engrossed - 17 - LRB101 09588 JRG 54686 b
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,

SB2023 Engrossed - 18 - LRB101 09588 JRG 54686 b
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,

SB2023 Engrossed - 19 - LRB101 09588 JRG 54686 b
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

SB2023 Engrossed - 20 - LRB101 09588 JRG 54686 b
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

SB2023 Engrossed - 21 - LRB101 09588 JRG 54686 b
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'

SB2023 Engrossed - 22 - LRB101 09588 JRG 54686 b
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

SB2023 Engrossed - 23 - LRB101 09588 JRG 54686 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.)
Section 10. The Illinois Credit Union Act is amended by
changing Section 8 as follows:

SB2023 Engrossed - 24 - LRB101 09588 JRG 54686 b
(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
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,

SB2023 Engrossed - 25 - LRB101 09588 JRG 54686 b
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.
(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

SB2023 Engrossed - 26 - LRB101 09588 JRG 54686 b
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
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

SB2023 Engrossed - 27 - LRB101 09588 JRG 54686 b
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
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)

SB2023 Engrossed - 28 - LRB101 09588 JRG 54686 b
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
(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

SB2023 Engrossed - 29 - LRB101 09588 JRG 54686 b
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
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:

SB2023 Engrossed - 30 - LRB101 09588 JRG 54686 b
(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
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

SB2023 Engrossed - 31 - LRB101 09588 JRG 54686 b
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
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.)
Section 99. Effective date. This Act takes effect upon
becoming law.