Illinois 2023-2024 Regular Session

Illinois House Bill HB1103 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1103 Introduced , by Rep. Mary E. Flowers SYNOPSIS AS INTRODUCED: New Act 30 ILCS 5/3-1 from Ch. 15, par. 303-1 735 ILCS 30/15-5-49 new Creates the Illinois State Bank Act. Provides that the Department of Financial and Professional Regulation shall operate the Illinois State Bank. Specifies the authority of the advisory board of directors to the Bank. Provides that the Secretary of Financial and Professional Regulation is to employ a president and employees. Contains provisions concerning the removal and discharge of appointees. Provides that State funds must be deposited in the Bank. Contains provisions concerning the nonliability of officers and sureties after deposit. Specifies the powers of the Bank. Contains provisions concerning the guaranty of deposits and the Bank's role as a clearinghouse, the authorization of loans to the General Revenue Fund, bank loans to farmers, limitations on loans by the Bank, the name in which business is conducted and titles taken, civil actions, surety on appeal, audits, electronic fund transfer systems, confidentiality of bank records, the sale and leasing of acquired agricultural real estate, and the Illinois higher education savings plan. Provides that the Bank is the custodian of securities. Amends the Illinois State Auditing Act to require that the Auditor General contract with an independent certified public accounting firm for an annual audit of the Illinois State Bank as provided in the Illinois State Bank Act. Amends the Eminent Domain Act to allow the Bank to acquire property by eminent domain. LRB103 05059 BMS 50073 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1103 Introduced , by Rep. Mary E. Flowers SYNOPSIS AS INTRODUCED: New Act 30 ILCS 5/3-1 from Ch. 15, par. 303-1 735 ILCS 30/15-5-49 new New Act 30 ILCS 5/3-1 from Ch. 15, par. 303-1 735 ILCS 30/15-5-49 new Creates the Illinois State Bank Act. Provides that the Department of Financial and Professional Regulation shall operate the Illinois State Bank. Specifies the authority of the advisory board of directors to the Bank. Provides that the Secretary of Financial and Professional Regulation is to employ a president and employees. Contains provisions concerning the removal and discharge of appointees. Provides that State funds must be deposited in the Bank. Contains provisions concerning the nonliability of officers and sureties after deposit. Specifies the powers of the Bank. Contains provisions concerning the guaranty of deposits and the Bank's role as a clearinghouse, the authorization of loans to the General Revenue Fund, bank loans to farmers, limitations on loans by the Bank, the name in which business is conducted and titles taken, civil actions, surety on appeal, audits, electronic fund transfer systems, confidentiality of bank records, the sale and leasing of acquired agricultural real estate, and the Illinois higher education savings plan. Provides that the Bank is the custodian of securities. Amends the Illinois State Auditing Act to require that the Auditor General contract with an independent certified public accounting firm for an annual audit of the Illinois State Bank as provided in the Illinois State Bank Act. Amends the Eminent Domain Act to allow the Bank to acquire property by eminent domain. LRB103 05059 BMS 50073 b LRB103 05059 BMS 50073 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1103 Introduced , by Rep. Mary E. Flowers SYNOPSIS AS INTRODUCED:
3	3	New Act 30 ILCS 5/3-1 from Ch. 15, par. 303-1 735 ILCS 30/15-5-49 new New Act 30 ILCS 5/3-1 from Ch. 15, par. 303-1 735 ILCS 30/15-5-49 new
4	4	New Act
5	5	30 ILCS 5/3-1 from Ch. 15, par. 303-1
6	6	735 ILCS 30/15-5-49 new
7	7	Creates the Illinois State Bank Act. Provides that the Department of Financial and Professional Regulation shall operate the Illinois State Bank. Specifies the authority of the advisory board of directors to the Bank. Provides that the Secretary of Financial and Professional Regulation is to employ a president and employees. Contains provisions concerning the removal and discharge of appointees. Provides that State funds must be deposited in the Bank. Contains provisions concerning the nonliability of officers and sureties after deposit. Specifies the powers of the Bank. Contains provisions concerning the guaranty of deposits and the Bank's role as a clearinghouse, the authorization of loans to the General Revenue Fund, bank loans to farmers, limitations on loans by the Bank, the name in which business is conducted and titles taken, civil actions, surety on appeal, audits, electronic fund transfer systems, confidentiality of bank records, the sale and leasing of acquired agricultural real estate, and the Illinois higher education savings plan. Provides that the Bank is the custodian of securities. Amends the Illinois State Auditing Act to require that the Auditor General contract with an independent certified public accounting firm for an annual audit of the Illinois State Bank as provided in the Illinois State Bank Act. Amends the Eminent Domain Act to allow the Bank to acquire property by eminent domain.
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9	9	LRB103 05059 BMS 50073 b
10	10	A BILL FOR
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13	13	1 AN ACT concerning financial regulation.
14	14	2 Be it enacted by the People of the State of Illinois,
15	15	3 represented in the General Assembly:
16	16	4 Section 1. Short title. This Act may be cited as the
17	17	5 Illinois State Bank Act.
18	18	6 Section 5. Purpose. For the purpose of encouraging and
19	19	7 promoting agriculture, commerce, and industry, the State shall
20	20	8 engage in the business of banking, and for that purpose shall
21	21	9 maintain a system of banking owned, controlled, and operated
22	22	10 by it, under the name of the Illinois State Bank.
23	23	11 Section 10. Definitions. As used in this Act:
24	24	12 "Bank" means the Illinois State Bank.
25	25	13 "Department" means the Department of Financial and
26	26	14 Professional Regulation.
27	27	15 "Secretary" means the Secretary of Financial and
28	28	16 Professional Regulation.
29	29	17 Section 15. Department to operate Bank; business of Bank.
30	30	18 The Department shall operate, manage, and control the Illinois
31	31	19 State Bank, locate and maintain its places of business, of
32	32	20 which the principal place must be within the State, and make
33	33	21 and enforce orders, rules, regulations, and bylaws for the
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37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1103 Introduced , by Rep. Mary E. Flowers SYNOPSIS AS INTRODUCED:
38	38	New Act 30 ILCS 5/3-1 from Ch. 15, par. 303-1 735 ILCS 30/15-5-49 new New Act 30 ILCS 5/3-1 from Ch. 15, par. 303-1 735 ILCS 30/15-5-49 new
39	39	New Act
40	40	30 ILCS 5/3-1 from Ch. 15, par. 303-1
41	41	735 ILCS 30/15-5-49 new
42	42	Creates the Illinois State Bank Act. Provides that the Department of Financial and Professional Regulation shall operate the Illinois State Bank. Specifies the authority of the advisory board of directors to the Bank. Provides that the Secretary of Financial and Professional Regulation is to employ a president and employees. Contains provisions concerning the removal and discharge of appointees. Provides that State funds must be deposited in the Bank. Contains provisions concerning the nonliability of officers and sureties after deposit. Specifies the powers of the Bank. Contains provisions concerning the guaranty of deposits and the Bank's role as a clearinghouse, the authorization of loans to the General Revenue Fund, bank loans to farmers, limitations on loans by the Bank, the name in which business is conducted and titles taken, civil actions, surety on appeal, audits, electronic fund transfer systems, confidentiality of bank records, the sale and leasing of acquired agricultural real estate, and the Illinois higher education savings plan. Provides that the Bank is the custodian of securities. Amends the Illinois State Auditing Act to require that the Auditor General contract with an independent certified public accounting firm for an annual audit of the Illinois State Bank as provided in the Illinois State Bank Act. Amends the Eminent Domain Act to allow the Bank to acquire property by eminent domain.
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44	44	LRB103 05059 BMS 50073 b
45	45	A BILL FOR
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51	51	New Act
52	52	30 ILCS 5/3-1 from Ch. 15, par. 303-1
53	53	735 ILCS 30/15-5-49 new
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72	72	1 transaction of its business. The business and financial
73	73	2 transactions of the Bank, in addition to other matters
74	74	3 specified in this Act, may include anything that any bank or
75	75	4 bank holding company lawfully may do, except as it is
76	76	5 restricted by the provisions of this Act. This Section may not
77	77	6 be held in any way to limit or qualify either the powers of the
78	78	7 Department granted by or the functions of the Bank as defined
79	79	8 in this Act. The powers of the Department and the functions of
80	80	9 the Bank must be implemented through actions taken and
81	81	10 policies adopted by the Department of Financial and
82	82	11 Professional Regulation.
83	83	12 Section 20. Declaration and finding of public purpose;
84	84	13 Illinois State Bank advisory board of directors. To enlist
85	85	14 the help of private enterprise and to encourage more active
86	86	15 implementation of the purposes of this Act, the Governor shall
87	87	16 appoint an advisory board of directors to the Illinois State
88	88	17 Bank consisting of 7 persons, at least 2 of whom must be
89	89	18 officers of banks, the majority of the stock of which is owned
90	90	19 by Illinois residents, and at least one of whom must be an
91	91	20 officer of a State-chartered or federally chartered financial
92	92	21 institution. The Governor shall appoint a chairman,
93	93	22 vice-chairman, and secretary from the advisory board of
94	94	23 directors. The term of a director is 4 years. The Department
95	95	24 shall define the duties of the advisory board of directors.
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106	106	1 Section 25. Authority of the advisory board of directors
107	107	2 to the Illinois State Bank. The advisory board of directors to
108	108	3 the Illinois State Bank shall do all of the following:
109	109	4 (1) Meet regularly with the management of the Illinois
110	110	5 State Bank to review the Bank's operations to determine
111	111	6 whether recommendations should be made by the board to the
112	112	7 Department relating to improved management performance,
113	113	8 better customer service, and overall improvement in
114	114	9 internal methods, procedures, and operating policies of
115	115	10 the Bank.
116	116	11 (2) Make recommendations to the Department relating to
117	117	12 the establishment of additional objectives for the
118	118	13 operation of the Illinois State Bank.
119	119	14 (3) Make recommendations to the Department concerning
120	120	15 the appointment of officers of the Illinois State Bank.
121	121	16 (4) Meet regularly with the Secretary to present any
122	122	17 recommendations concerning the Illinois State Bank.
123	123	18 (5) In addition to the foregoing and pursuant to
124	124	19 authorization from the Secretary, act on behalf of the
125	125	20 Bank with respect to the powers and functions of the Bank.
126	126	21 Section 30. Secretary to employ president and employees;
127	127	22 compensation, operation, and maintenance expenditures limited
128	128	23 to appropriations, revenue, or capital. The Secretary shall
129	129	24 appoint a president; may appoint and employ subordinate
130	130	25 officers, employees, and agents as he or she may judge
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141	141	1 expedient and in the interests of the State; and shall define
142	142	2 the duties, designate the titles, and fix the compensation of
143	143	3 all such persons. The Secretary may designate the president or
144	144	4 other officers or employees as its agent in respect to the
145	145	5 functions of the Bank, subject to its supervision, limitation,
146	146	6 and control. The total compensation of such appointees and
147	147	7 employees, together with other expenditures for the operation
148	148	8 and maintenance of the Bank, shall remain within the
149	149	9 appropriation, revenues, or capital lawfully available for
150	150	10 those purposes.
151	151	11 Section 35. Removal and discharge of appointees. The
152	152	12 Secretary may remove and discharge any and all persons
153	153	13 appointed in the exercise of the powers granted by this Act,
154	154	14 whether by the Secretary or by the president of the Bank. All
155	155	15 appointments and removals contemplated by this Act must be
156	156	16 made as the Secretary deems fit to promote the efficiency of
157	157	17 the public service.
158	158	18 Section 40. State funds must be deposited in the Illinois
159	159	19 State Bank; income of the Bank. All State funds and funds of
160	160	20 all State penal, educational, and industrial institutions must
161	161	21 be deposited in the Illinois State Bank by the persons having
162	162	22 control of those funds or must be deposited in accordance with
163	163	23 constitutional and statutory provisions. All income earned by
164	164	24 the Bank for its own account on State moneys that are deposited
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175	175	1 in or invested with the Bank to the credit of the State must be
176	176	2 credited to and become a part of the revenues and income of the
177	177	3 Bank.
178	178	4 Section 45. Nonliability of officers and sureties after
179	179	5 deposit. Whenever any public funds are deposited in the
180	180	6 Illinois State Bank, the official having control of the public
181	181	7 funds and the sureties on the bond of every such official shall
182	182	8 be exempt from all liability by reason of loss of any such
183	183	9 funds while so deposited.
184	184	10 Section 50. Guarantee of deposits; exemption from all
185	185	11 taxation. All deposits in the Illinois State Bank are
186	186	12 guaranteed by the State. Those deposits are exempt from State,
187	187	13 county, and municipal taxes of any and all kinds.
188	188	14 Section 55. Bank as a clearinghouse. For banks that make
189	189	15 the Illinois State Bank a reserve depositary, it may perform
190	190	16 the functions and render the services of a clearinghouse,
191	191	17 including all facilities for providing domestic and foreign
192	192	18 exchange, and may rediscount paper, on those terms as the
193	193	19 Department shall provide.
194	194	20 Section 60. Powers. The Illinois State Bank may:
195	195	21 (1) make, purchase, guarantee, or hold loans:
196	196	22 (A) to State-chartered or federally chartered
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207	207	1 lending agencies or institutions or any other
208	208	2 financial institutions;
209	209	3 (B) to holders of Bank certificates of deposit and
210	210	4 savings accounts up to 90% of the value of the
211	211	5 certificates and savings accounts offered as security;
212	212	6 (C) to actual farmers who are residents of this
213	213	7 State, if the loans are secured by recorded mortgages
214	214	8 giving the Bank a first lien on real estate in Illinois
215	215	9 in amounts not to exceed 80% of the value of the
216	216	10 security;
217	217	11 (D) that are insured or guaranteed in whole or in
218	218	12 part by the United States, its agencies, or
219	219	13 instrumentalities;
220	220	14 (E) that are eligible to be guaranteed under
221	221	15 education. Loans made pursuant to this paragraph (E)
222	222	16 may provide for interest that remains unpaid at the
223	223	17 end of any period specified in the loan to be added to
224	224	18 the principal amount of the debt and thereafter
225	225	19 accumulate interest;
226	226	20 (F) to individuals or bank holding companies for
227	227	21 the purpose of purchasing or refinancing the purchase
228	228	22 of bank stock of a bank located in the State;
229	229	23 (G) under U.S. Public Law No. 99-198 as amended
230	230	24 through December 31, 1996, to nonprofit corporations
231	231	25 for the purpose of relending loan funds to rural
232	232	26 businesses;
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243	243	1 (H) under Title 7, Code of Federal Regulations,
244	244	2 part 1948, subpart C; part 1951, subparts F and R; and
245	245	3 part 1955, subparts A, B, and C, as amended through
246	246	4 December 31, 1996, to finance businesses and community
247	247	5 development projects in rural areas;
248	248	6 (I) obtained as security pledged for or originated
249	249	7 in the restructuring of any other loan properly
250	250	8 originated or participated in by the Bank;
251	251	9 (J) to instrumentalities of this State;
252	252	10 (K) to an investment company created for
253	253	11 completing a trust preferred securities transaction
254	254	12 for the benefit of a financial institution located in
255	255	13 this State; and
256	256	14 (L) as otherwise provided by this Act or other
257	257	15 statutes;
258	258	16 (2) if the Bank is participating in the loan and the
259	259	17 Bank deems it is in the best interests of the Bank to do
260	260	18 so, purchase the remaining portion of the loan from a
261	261	19 participating lender that is closed by regulatory action
262	262	20 or from the receiver of the participating lender's assets;
263	263	21 (3) make agricultural real estate loans in order to
264	264	22 participate in the agricultural mortgage secondary market
265	265	23 program established pursuant to the federal Agricultural
266	266	24 Credit Act amended through December 31, 1996;
267	267	25 (4) purchase participation interests in loans made or
268	268	26 held by banks, bank holding companies, State-chartered or
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279	279	1 federally chartered lending agencies or institutions, any
280	280	2 other financial institutions, or any other entity that
281	281	3 provides financial services and meets underwriting
282	282	4 standards that are generally accepted by State or federal
283	283	5 financial regulatory agencies;
284	284	6 (5) invest its funds:
285	285	7 (A) in conformity with policies of the Department;
286	286	8 (B) in a public venture capital corporation
287	287	9 organized and doing business in this State through the
288	288	10 purchase of shares of stock; and
289	289	11 (C) in Illinois alternative and venture capital
290	290	12 investments and early-stage capital funds;
291	291	13 (6) buy and sell federal funds;
292	292	14 (7) lease, assign, sell, exchange, transfer, convey,
293	293	15 grant, pledge, or mortgage all real and personal property,
294	294	16 title to which has been acquired in any manner;
295	295	17 (8) acquire real or personal property or property
296	296	18 rights by purchase, lease, or, subject to applicable law,
297	297	19 the exercise of the right of eminent domain and may
298	298	20 construct, remodel, and repair buildings;
299	299	21 (9) receive deposits from any source and deposit its
300	300	22 funds in any bank or other financial institution;
301	301	23 (10) perform all acts and do all things necessary,
302	302	24 convenient, advisable, or desirable to carry out the
303	303	25 powers expressly granted or necessarily implied in this
304	304	26 Act through or by means of its president, officers,
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315	315	1 agents, or employees or by contracts with any person,
316	316	2 firm, or corporation; and
317	317	3 (11) purchase mortgage loans on residential real
318	318	4 property originated by financial institutions.
319	319	5 Section 65. Loans to General Revenue Fund authorized;
320	320	6 continuing appropriation. The State Treasurer and the
321	321	7 Director of the Governor's Office of Management and Budget
322	322	8 may, when the balance in the General Revenue Fund is
323	323	9 insufficient to meet legislative appropriations, execute and
324	324	10 issue on behalf of the State evidences of indebtedness on the
325	325	11 General Revenue Fund that at no time may exceed the total
326	326	12 principal amount of $10,000,000 with principal maturity of not
327	327	13 more than 12 months. As a condition precedent to the issuance
328	328	14 and sale of the evidences of indebtedness, the State Treasurer
329	329	15 must request and obtain a statement from the Director of the
330	330	16 Governor's Office of Management and Budget and the Director of
331	331	17 Revenue certifying that anticipated General Revenue Fund
332	332	18 revenues for the balance of the fiscal year in which the
333	333	19 evidences of indebtedness are to be issued will exceed the
334	334	20 principal amount and interest on the evidences of indebtedness
335	335	21 to be issued. The Department may in turn direct the Illinois
336	336	22 State Bank to make loans to the General Revenue Fund by the
337	337	23 purchase of the evidences of indebtedness at those rates of
338	338	24 interest as the Department may prescribe. After evidences of
339	339	25 indebtedness have been issued and sold pursuant to this
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350	350	1 Section, the State Treasurer shall establish a fund for the
351	351	2 repayment of the principal upon maturity and the interest when
352	352	3 due. The State Treasurer shall place all available General
353	353	4 Revenue Fund revenues into this fund until the fund contains a
354	354	5 sufficient balance for the repayment of the principal at
355	355	6 maturity and interest when due, which moneys are hereby
356	356	7 appropriated for this purpose.
357	357	8 Section 70. Bank loans to beginning farmers; revolving
358	358	9 loan fund; requirements.
359	359	10 (a) A revolving loan fund must be maintained in the
360	360	11 Illinois State Bank for the purpose of making or participating
361	361	12 in loans to Illinois beginning farmers for the purchase of
362	362	13 agricultural real estate, equipment, and livestock. All moneys
363	363	14 transferred into the fund, interest upon moneys in the fund,
364	364	15 and payments to the fund of principal and interest on loans
365	365	16 made from the fund are appropriated for the purpose of
366	366	17 providing loans and to supplement the interest rate on loans
367	367	18 to beginning farmers made by this Act under applicable law and
368	368	19 in accordance with this Section.
369	369	20 (b) The revolving loan fund and loans made from the fund
370	370	21 must be administered and supervised by the Bank. The Bank may
371	371	22 deduct a service fee for administering the fund from interest
372	372	23 payments received on loans. An application for a loan from the
373	373	24 fund must be made to the Bank and, upon approval, a loan must
374	374	25 be made from the fund in accordance with this Section.
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385	385	1 (c) A loan made from the fund may not exceed 80% of the
386	386	2 appraised value of the agricultural collateral, with the
387	387	3 actual percentage to be determined by the Bank. The Bank may do
388	388	4 all things and acts and may establish additional terms and
389	389	5 conditions necessary to make a loan under this Section. A loan
390	390	6 made from the fund must have a first security interest.
391	391	7 (d) A loan made from the fund must have the interest rate
392	392	8 fixed at 1% below the Bank's then current base rate for the
393	393	9 first 5 years with a maximum rate of 6% per year and variable
394	394	10 at 1% below the Bank's then current base rate for the second 5
395	395	11 years. During the second 5 years, the variable rate must be
396	396	12 adjusted annually on the anniversary date. The rate during the
397	397	13 remaining term of the loan floats at the Bank's base rate as in
398	398	14 effect from time to time.
399	399	15 (e) The maximum term of a real estate loan is 25 years. The
400	400	16 maximum term of a farm equipment or livestock loan is 7 years.
401	401	17 (f) The Department shall contract with a certified public
402	402	18 accounting firm to audit the fund as necessary. The cost of the
403	403	19 audit, and any other actual costs incurred by the Bank on
404	404	20 behalf of the fund, must be paid for by the fund.
405	405	21 (g) The Bank shall adopt rules necessary to implement this
406	406	22 Section.
407	407	23 Section 75. Name in which business conducted and titles
408	408	24 taken; execution of instruments. All business of the Bank
409	409	25 must be conducted under the name of "The Illinois State Bank".
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420	420	1 Title to property pertaining to the operation of the Bank must
421	421	2 be obtained and conveyed in the name of "The State of Illinois,
422	422	3 doing business as The Illinois State Bank". Instruments must
423	423	4 be executed in the name of the State. Within the scope of
424	424	5 authority granted by the Department, the president may execute
425	425	6 instruments on behalf of the Bank, including any instrument
426	426	7 granting, conveying, or otherwise affecting any interest in or
427	427	8 lien upon real or personal property. Other officers or
428	428	9 employees of, and legal counsel to, the Bank may execute
429	429	10 instruments on behalf of the Bank when authorized by the
430	430	11 Department.
431	431	12 Section 80. Civil actions. Civil actions may be brought
432	432	13 against the State on account of claims for relief claimed to
433	433	14 have arisen out of transactions connected with the operation
434	434	15 of the Illinois State Bank upon condition that the provisions
435	435	16 of this Section are complied with. In such actions, the State
436	436	17 must be designated as "The State of Illinois, doing business
437	437	18 as The Illinois State Bank". The actions may be brought in the
438	438	19 same manner and are subject to the same provisions of law as
439	439	20 other civil actions.
440	440	21 Section 85. Surety on appeal, attachment, claim and
441	441	22 delivery, and other cases in which undertaking required.
442	442	23 Provisions of law requiring that a surety or sureties be given
443	443	24 on undertakings in actions on appeal, attachment, claim and
444	444
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446	446
447	447
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454	454	1 delivery, and other cases in which an undertaking is required,
455	455	2 are not applicable to the State of Illinois, doing business as
456	456	3 the Illinois State Bank, as the party seeking relief. The
457	457	4 Illinois State Bank is required to give its own undertaking
458	458	5 without surety and to reimburse the adverse party when
459	459	6 required by law.
460	460	7 Section 90. Examinations and audit reports. The Auditor
461	461	8 General shall contract with an independent certified public
462	462	9 accounting firm for an annual audit of the Illinois State Bank
463	463	10 in accordance with generally accepted government auditing
464	464	11 standards. The Auditor General shall audit annually or
465	465	12 contract for an annual audit of the separate programs and
466	466	13 funds administered by the Illinois State Bank. On request of
467	467	14 the Auditor General, the Department shall assist the Auditor
468	468	15 General in the auditing firm selection process, but the
469	469	16 selection of the auditing firm is the Auditor General's
470	470	17 responsibility. The auditor selected shall prepare an audit
471	471	18 report that includes financial statements presented in
472	472	19 accordance with the audit and accounting guide for banks and
473	473	20 savings institutions issued by the American Institute of
474	474	21 Certified Public Accountants. The auditor also shall prepare
475	475	22 audited financial statements for inclusion in the
476	476	23 comprehensive annual financial report for the State. The State
477	477	24 auditor may conduct performance audits of the Illinois State
478	478	25 Bank, including the separate programs and funds administered
479	479
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489	489	1 by the Bank. The Auditor General shall report the results of
490	490	2 the audit to the Department and to the General Assembly. The
491	491	3 Illinois State Bank or its separate programs and funds shall
492	492	4 pay the costs of the audit. The Department shall examine the
493	493	5 Illinois State Bank at least once each 24 months and conduct
494	494	6 any investigation of the Bank that may be necessary. The
495	495	7 Secretary shall report the examination results, and the
496	496	8 results of any necessary investigation, to the Department as
497	497	9 soon as practicable and to the legislative assembly. The
498	498	10 Department shall charge a fee for any examination or
499	499	11 investigation at an hourly rate to be set by the Secretary,
500	500	12 sufficient to cover all reasonable expenses of the Department
501	501	13 associated with the examinations and investigations provided
502	502	14 for by this Section.
503	503	15 Section 95. Electronic fund transfer systems. The
504	504	16 Illinois State Bank may establish, by rule adopted by the
505	505	17 Department, a system to provide fund transfer services to its
506	506	18 customers and to the customers of State-chartered and
507	507	19 federally chartered banks located within the State of
508	508	20 Illinois, and to other financial institutions otherwise
509	509	21 authorized to utilize the services of electronic fund transfer
510	510	22 systems. The Bank may acquire such equipment as is necessary
511	511	23 to establish electronic fund transfer systems and may impose
512	512	24 reasonable charges for services rendered to other banks under
513	513	25 this Act as may be established by the Department.
514	514
515	515
516	516
517	517
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524	524	1 Section 100. Confidentiality of Bank records. The
525	525	2 following records of the Illinois State Bank are confidential:
526	526	3 (1) Commercial or financial information of a customer,
527	527	4 whether obtained directly or indirectly, except for
528	528	5 routine credit inquiries or unless required by due legal
529	529	6 process. As used in this item (1), "customer" means any
530	530	7 person who has transacted or is transacting business with,
531	531	8 or has used or is using the services of, the Illinois State
532	532	9 Bank, or for whom the Illinois State Bank has acted as a
533	533	10 fiduciary with respect to trust property.
534	534	11 (2) Internal or interagency memorandums or letters
535	535	12 that would not be available by law to a party other than in
536	536	13 litigation with the Bank.
537	537	14 (3) Information contained in or related to
538	538	15 examination, operating, or condition reports prepared by,
539	539	16 on behalf of, or for the use of a State or federal agency
540	540	17 responsible for the regulation or supervision of any Bank
541	541	18 activity.
542	542	19 (4) Information obtained from the Department that
543	543	20 would not be available from that agency under applicable
544	544	21 law.
545	545	22 (5) The report by a Bank officer or member of the
546	546	23 Bank's advisory board of directors concerning personal
547	547	24 financial statements.
548	548
549	549
550	550
551	551
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558	558	1 Section 105. Custodian of securities. Notwithstanding any
559	559	2 other provision of law to the contrary, the Illinois State
560	560	3 Bank shall replace the State Treasurer as the custodian of all
561	561	4 securities that are required to be deposited with the State
562	562	5 except that the State Treasurer is the custodian of all
563	563	6 securities resulting from the investment of funds by the State
564	564	7 Treasurer, or except as otherwise required by this Section and
565	565	8 by law.
566	566	9 Section 110. Sale and leasing of acquired agricultural
567	567	10 real estate. The sale and leasing of agricultural real estate
568	568	11 with an appraised value of $10,000 or more acquired by the
569	569	12 Illinois State Bank through foreclosure or deed in lieu of
570	570	13 foreclosure must be done in accordance with law and policies
571	571	14 adopted by the Department. The sale and leasing of
572	572	15 agricultural real estate with an appraised value of less than
573	573	16 $10,000, acquired by the Illinois State Bank through
574	574	17 foreclosure or deed in lieu of foreclosure, may be done in a
575	575	18 manner as the Bank determines is appropriate given the
576	576	19 circumstances. In the case of a lease by the party holding the
577	577	20 right of redemption, that party has the right to purchase at
578	578	21 any time.
579	579	22 Section 115. Illinois higher education savings plan;
580	580	23 administration; rules; continuing appropriation. The Illinois
581	581	24 State Bank shall adopt rules to administer, manage, promote,
582	582
583	583
584	584
585	585
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592	592	1 and market an Illinois higher education savings plan. The Bank
593	593	2 shall ensure that the Illinois higher education savings plan
594	594	3 is maintained in compliance with Internal Revenue Service
595	595	4 standards for qualified State tuition programs. The Bank, as
596	596	5 trustee of the Illinois higher education savings plan, may
597	597	6 impose an annual administrative fee to recover expenses
598	598	7 incurred in connection with operation of the plan or for other
599	599	8 programs deemed to promote attendance at an institution of
600	600	9 higher education. Administrative fees received by the Bank are
601	601	10 appropriated on a continuing basis to be used as provided in
602	602	11 this Section. Contributions made during the taxable year to a
603	603	12 higher education savings plan administered by the Bank,
604	604	13 pursuant to the provisions of the plan, are eligible for an
605	605	14 income tax deduction as provided by law. Information related
606	606	15 to contributions is confidential except as is needed by the
607	607	16 Director of Revenue for determining compliance with the income
608	608	17 tax deduction as provided by law.
609	609	18 Section 900. The Illinois State Auditing Act is amended by
610	610	19 changing Section 3-1 as follows:
611	611	20 (30 ILCS 5/3-1) (from Ch. 15, par. 303-1)
612	612	21 Sec. 3-1. Jurisdiction of Auditor General. The Auditor
613	613	22 General has jurisdiction over all State agencies to make post
614	614	23 audits and investigations authorized by or under this Act or
615	615	24 the Constitution.
616	616
617	617
618	618
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626	626	1 The Auditor General has jurisdiction over local government
627	627	2 agencies and private agencies only:
628	628	3 (a) to make such post audits authorized by or under
629	629	4 this Act as are necessary and incidental to a post audit of
630	630	5 a State agency or of a program administered by a State
631	631	6 agency involving public funds of the State, but this
632	632	7 jurisdiction does not include any authority to review
633	633	8 local governmental agencies in the obligation, receipt,
634	634	9 expenditure or use of public funds of the State that are
635	635	10 granted without limitation or condition imposed by law,
636	636	11 other than the general limitation that such funds be used
637	637	12 for public purposes;
638	638	13 (b) to make investigations authorized by or under this
639	639	14 Act or the Constitution; and
640	640	15 (c) to make audits of the records of local government
641	641	16 agencies to verify actual costs of state-mandated programs
642	642	17 when directed to do so by the Legislative Audit Commission
643	643	18 at the request of the State Board of Appeals under the
644	644	19 State Mandates Act.
645	645	20 In addition to the foregoing, the Auditor General may
646	646	21 conduct an audit of the Metropolitan Pier and Exposition
647	647	22 Authority, the Regional Transportation Authority, the Suburban
648	648	23 Bus Division, the Commuter Rail Division and the Chicago
649	649	24 Transit Authority and any other subsidized carrier when
650	650	25 authorized by the Legislative Audit Commission. Such audit may
651	651	26 be a financial, management or program audit, or any
652	652
653	653
654	654
655	655
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662	662	1 combination thereof.
663	663	2 The audit shall determine whether they are operating in
664	664	3 accordance with all applicable laws and regulations. Subject
665	665	4 to the limitations of this Act, the Legislative Audit
666	666	5 Commission may by resolution specify additional determinations
667	667	6 to be included in the scope of the audit.
668	668	7 In addition to the foregoing, the Auditor General must
669	669	8 also conduct a financial audit of the Illinois Sports
670	670	9 Facilities Authority's expenditures of public funds in
671	671	10 connection with the reconstruction, renovation, remodeling,
672	672	11 extension, or improvement of all or substantially all of any
673	673	12 existing "facility", as that term is defined in the Illinois
674	674	13 Sports Facilities Authority Act.
675	675	14 The Auditor General may also conduct an audit, when
676	676	15 authorized by the Legislative Audit Commission, of any
677	677	16 hospital which receives 10% or more of its gross revenues from
678	678	17 payments from the State of Illinois, Department of Healthcare
679	679	18 and Family Services (formerly Department of Public Aid),
680	680	19 Medical Assistance Program.
681	681	20 The Auditor General is authorized to conduct financial and
682	682	21 compliance audits of the Illinois Distance Learning Foundation
683	683	22 and the Illinois Conservation Foundation.
684	684	23 As soon as practical after the effective date of this
685	685	24 amendatory Act of 1995, the Auditor General shall conduct a
686	686	25 compliance and management audit of the City of Chicago and any
687	687	26 other entity with regard to the operation of Chicago O'Hare
688	688
689	689
690	690
691	691
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694	694
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698	698	1 International Airport, Chicago Midway Airport and Merrill C.
699	699	2 Meigs Field. The audit shall include, but not be limited to, an
700	700	3 examination of revenues, expenses, and transfers of funds;
701	701	4 purchasing and contracting policies and practices; staffing
702	702	5 levels; and hiring practices and procedures. When completed,
703	703	6 the audit required by this paragraph shall be distributed in
704	704	7 accordance with Section 3-14.
705	705	8 The Auditor General shall conduct a financial and
706	706	9 compliance and program audit of distributions from the
707	707	10 Municipal Economic Development Fund during the immediately
708	708	11 preceding calendar year pursuant to Section 8-403.1 of the
709	709	12 Public Utilities Act at no cost to the city, village, or
710	710	13 incorporated town that received the distributions.
711	711	14 The Auditor General must conduct an audit of the Health
712	712	15 Facilities and Services Review Board pursuant to Section 19.5
713	713	16 of the Illinois Health Facilities Planning Act.
714	714	17 The Auditor General of the State of Illinois shall
715	715	18 annually conduct or cause to be conducted a financial and
716	716	19 compliance audit of the books and records of any county water
717	717	20 commission organized pursuant to the Water Commission Act of
718	718	21 1985 and shall file a copy of the report of that audit with the
719	719	22 Governor and the Legislative Audit Commission. The filed audit
720	720	23 shall be open to the public for inspection. The cost of the
721	721	24 audit shall be charged to the county water commission in
722	722	25 accordance with Section 6z-27 of the State Finance Act. The
723	723	26 county water commission shall make available to the Auditor
724	724
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734	734	1 General its books and records and any other documentation,
735	735	2 whether in the possession of its trustees or other parties,
736	736	3 necessary to conduct the audit required. These audit
737	737	4 requirements apply only through July 1, 2007.
738	738	5 The Auditor General must conduct audits of the Rend Lake
739	739	6 Conservancy District as provided in Section 25.5 of the River
740	740	7 Conservancy Districts Act.
741	741	8 The Auditor General must conduct financial audits of the
742	742	9 Southeastern Illinois Economic Development Authority as
743	743	10 provided in Section 70 of the Southeastern Illinois Economic
744	744	11 Development Authority Act.
745	745	12 The Auditor General shall conduct a compliance audit in
746	746	13 accordance with subsections (d) and (f) of Section 30 of the
747	747	14 Innovation Development and Economy Act.
748	748	15 The Auditor General must contract with an independent
749	749	16 certified public accounting firm for an annual audit of the
750	750	17 Illinois State Bank as provided in Section 90 of the Illinois
751	751	18 State Bank Act.
752	752	19 (Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;
753	753	20 96-939, eff. 6-24-10.)
754	754	21 Section 905. The Eminent Domain Act is amended by adding
755	755	22 Section 15-5-49 as follows:
756	756	23 (735 ILCS 30/15-5-49 new)
757	757	24 Sec. 15-5-49. Eminent domain powers in new Acts. The
758	758
759	759
760	760
761	761
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768	768	1 following provisions of law may include express grants of the
769	769	2 power to acquire property by condemnation or eminent domain:
770	770	3 Illinois State Bank Act; The Illinois State Bank; for purposes
771	771	4 of the Act.
772	772
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