Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3617 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Public Act 103-1027
2	1		SB3617 EnrolledLRB103 34188 HLH 64011 b SB3617 Enrolled LRB103 34188 HLH 64011 b
3	2		SB3617 Enrolled LRB103 34188 HLH 64011 b
4		-	AN ACT concerning revenue.
5		-	Be it enacted by the People of the State of Illinois,
6		-	represented in the General Assembly:
7		-	Section 5. The Department of Revenue Law of the Civil
8		-	Administrative Code of Illinois is amended by adding Section
9		-	2505-430 as follows:
10		-	(20 ILCS 2505/2505-430 new)
11		-	Sec. 2505-430. Financial institution data matching.
12		-	(a) Definitions. As used in this Section:
13		-	"Account" means a demand deposit account, checking or
14		-	negotiable withdrawal order account, savings account, time
15		-	deposit account, or money market mutual fund account.
16		-	"Financial institution" means:
17		-	(1) a depository institution, which is any bank or
18		-	saving association;
19		-	(2) an insured depository institution, which is any
20		-	bank or saving institution the deposits of which are
21		-	insured pursuant to the Federal Deposit Insurance Act, or
22		-	any uninsured branch or agency of a foreign bank or a
23		-	commercial lending company owned or controlled by a
24		-	foreign bank;
25		-	(3) a federal depository institution, which is any
26		-	national bank, any federal savings association, or any
	3	+	1 AN ACT concerning revenue.
	4	+	2 Be it enacted by the People of the State of Illinois,
	5	+	3 represented in the General Assembly:
	6	+	4 Section 5. The Department of Revenue Law of the Civil
	7	+	5 Administrative Code of Illinois is amended by adding Section
	8	+	6 2505-430 as follows:
	9	+	7 (20 ILCS 2505/2505-430 new)
	10	+	8 Sec. 2505-430. Financial institution data matching.
	11	+	9 (a) Definitions. As used in this Section:
	12	+	10 "Account" means a demand deposit account, checking or
	13	+	11 negotiable withdrawal order account, savings account, time
	14	+	12 deposit account, or money market mutual fund account.
	15	+	13 "Financial institution" means:
	16	+	14 (1) a depository institution, which is any bank or
	17	+	15 saving association;
	18	+	16 (2) an insured depository institution, which is any
	19	+	17 bank or saving institution the deposits of which are
	20	+	18 insured pursuant to the Federal Deposit Insurance Act, or
	21	+	19 any uninsured branch or agency of a foreign bank or a
	22	+	20 commercial lending company owned or controlled by a
	23	+	21 foreign bank;
	24	+	22 (3) a federal depository institution, which is any
	25	+	23 national bank, any federal savings association, or any
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33		-	federal branch;
34		-	(4) a state depository institution, which is any state
35		-	bank, any state savings association, or any insured branch
36		-	that is not a federal branch;
37		-	(5) a federal credit union, which is a cooperative
38		-	association organized in accordance with the provisions of
39		-	the Federal Credit Union Act;
40		-	(6) a state-chartered credit union that is organized
41		-	and operated according to the laws of this or any other
42		-	state, which laws provide for the organization of credit
43		-	unions similar in principle and objectives to federal
44		-	credit unions; and
45		-	(7) any benefit association, insurance company, safe
46		-	deposit company, money market mutual fund, or similar
47		-	entity authorized to do business in this State.
48		-	"Financial record" has the meaning given to that term in
49		-	Section 3401 of the federal Right to Financial Privacy Act of
50		-	1978.
51		-	(b) The Department may design and implement a data match
52		-	system pursuant to which the Department and financial
53		-	institutions doing business in this State may enter into
54		-	agreements for the purpose of identifying accounts of
55		-	taxpayers who are delinquent in the payment of a tax collected
56		-	by the Department. No financial institution shall be required
57		-	to enter into any such agreement with the Department. Nothing
58		-	in this Section shall be interpreted as requiring a financial
	32	+	SB3617 Enrolled- 2 -LRB103 34188 HLH 64011 b SB3617 Enrolled - 2 - LRB103 34188 HLH 64011 b
	33	+	SB3617 Enrolled - 2 - LRB103 34188 HLH 64011 b
	34	+	1 federal branch;
	35	+	2 (4) a state depository institution, which is any state
	36	+	3 bank, any state savings association, or any insured branch
	37	+	4 that is not a federal branch;
	38	+	5 (5) a federal credit union, which is a cooperative
	39	+	6 association organized in accordance with the provisions of
	40	+	7 the Federal Credit Union Act;
	41	+	8 (6) a state-chartered credit union that is organized
	42	+	9 and operated according to the laws of this or any other
	43	+	10 state, which laws provide for the organization of credit
	44	+	11 unions similar in principle and objectives to federal
	45	+	12 credit unions; and
	46	+	13 (7) any benefit association, insurance company, safe
	47	+	14 deposit company, money market mutual fund, or similar
	48	+	15 entity authorized to do business in this State.
	49	+	16 "Financial record" has the meaning given to that term in
	50	+	17 Section 3401 of the federal Right to Financial Privacy Act of
	51	+	18 1978.
	52	+	19 (b) The Department may design and implement a data match
	53	+	20 system pursuant to which the Department and financial
	54	+	21 institutions doing business in this State may enter into
	55	+	22 agreements for the purpose of identifying accounts of
	56	+	23 taxpayers who are delinquent in the payment of a tax collected
	57	+	24 by the Department. No financial institution shall be required
	58	+	25 to enter into any such agreement with the Department. Nothing
	59	+	26 in this Section shall be interpreted as requiring a financial
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61		-	institution to enter into an agreement with the Department or
62		-	as requiring a financial institution to change its current
63		-	practice of cooperating with the Department's requests on a
64		-	case-by-case basis.
65		-	Any agreement entered into with a financial institution
66		-	under this Section shall provide that the financial
67		-	institution shall compare the data of account holders, owners,
68		-	or customers who maintain one or more accounts at the
69		-	financial institution with data of individuals and business
70		-	entities who are identified by the Department as delinquent
71		-	taxpayers and whose name, record address, and social security
72		-	number or tax identification number are provided by the
73		-	Department to the financial institution.
74		-	If the financial institution or the Department determines
75		-	that the name and social security number or tax identification
76		-	number of an individual or business entity identified by the
77		-	Department as a delinquent taxpayer matches the name and
78		-	social security number or tax identification number of an
79		-	account holder, owner, or customer who maintains one or more
80		-	accounts at the financial institution, then the financial
81		-	institution shall report the individual's or business entity's
82		-	name and either social security number or tax identification
83		-	number to the Department for each calendar quarter in which
84		-	the Department notifies the financial institution that the
85		-	individual or business entity is a delinquent taxpayer.
86		-	(c) The reporting requirements of subsection (b) of this
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89		-	Section apply to personal (both individual and joint) and
90		-	business accounts, including sole proprietorship accounts. In
91		-	the case of a joint account, the account holder or owner shall
92		-	be deemed to be the primary account holder or owner
93		-	established by the financial institution in accordance with
94		-	the financial institution's internal procedures.
95		-	(d) The Department shall make a reasonable effort to
96		-	accommodate those financial institutions on which the
97		-	requirements of this Section would impose a hardship. In the
98		-	case of a non-automated financial institution, a paper copy
99		-	including either social security numbers or tax identification
100		-	numbers is an acceptable format. In order to allow for data
101		-	processing implementation, no agreement shall become effective
102		-	earlier than 90 days after its execution.
103		-	(e) All information provided by a financial institution
104		-	under this Section is confidential and may be used only for the
105		-	purpose of enforcing payment of delinquent taxes.
106		-	(f) A financial institution that provides information
107		-	under this Section shall not be liable to any account holder,
108		-	owner, or other person in any civil, criminal, or
109		-	administrative action for any of the following:
110		-	(1) disclosing the required information to the
111		-	Department, any other provisions of law notwithstanding;
112		-	(2) holding, encumbering, or surrendering any of an
113		-	individual's accounts as defined in subsection (a) of this
114		-	Section in response to a lien or order to withhold and
	64	+
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117		-	deliver issued by the Department; or
118		-	(3) any other action taken or omission made in good
119		-	faith to comply with this Section, including individual or
120		-	mechanical errors, provided that the action or omission
121		-	does not constitute gross negligence or willful
122		-	misconduct.
123		-	(g) Each agreement under this Section shall provide that
124		-	the Department shall pay to the financial institution
125		-	providing or comparing the data a reasonable fee not to exceed
126		-	the institution's actual cost of providing the data or
127		-	performing the comparison.
	68	+	SB3617 Enrolled- 3 -LRB103 34188 HLH 64011 b SB3617 Enrolled - 3 - LRB103 34188 HLH 64011 b
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	70	+	1 institution to enter into an agreement with the Department or
	71	+	2 as requiring a financial institution to change its current
	72	+	3 practice of cooperating with the Department's requests on a
	73	+	4 case-by-case basis.
	74	+	5 Any agreement entered into with a financial institution
	75	+	6 under this Section shall provide that the financial
	76	+	7 institution shall compare the data of account holders, owners,
	77	+	8 or customers who maintain one or more accounts at the
	78	+	9 financial institution with data of individuals and business
	79	+	10 entities who are identified by the Department as delinquent
	80	+	11 taxpayers and whose name, record address, and social security
	81	+	12 number or tax identification number are provided by the
	82	+	13 Department to the financial institution.
	83	+	14 If the financial institution or the Department determines
	84	+	15 that the name and social security number or tax identification
	85	+	16 number of an individual or business entity identified by the
	86	+	17 Department as a delinquent taxpayer matches the name and
	87	+	18 social security number or tax identification number of an
	88	+	19 account holder, owner, or customer who maintains one or more
	89	+	20 accounts at the financial institution, then the financial
	90	+	21 institution shall report the individual's or business entity's
	91	+	22 name and either social security number or tax identification
	92	+	23 number to the Department for each calendar quarter in which
	93	+	24 the Department notifies the financial institution that the
	94	+	25 individual or business entity is a delinquent taxpayer.
	95	+	26 (c) The reporting requirements of subsection (b) of this
	96	+
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	99	+
	100	+
	101	+	SB3617 Enrolled - 3 - LRB103 34188 HLH 64011 b
	102	+
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	104	+	SB3617 Enrolled- 4 -LRB103 34188 HLH 64011 b SB3617 Enrolled - 4 - LRB103 34188 HLH 64011 b
	105	+	SB3617 Enrolled - 4 - LRB103 34188 HLH 64011 b
	106	+	1 Section apply to personal (both individual and joint) and
	107	+	2 business accounts, including sole proprietorship accounts. In
	108	+	3 the case of a joint account, the account holder or owner shall
	109	+	4 be deemed to be the primary account holder or owner
	110	+	5 established by the financial institution in accordance with
	111	+	6 the financial institution's internal procedures.
	112	+	7 (d) The Department shall make a reasonable effort to
	113	+	8 accommodate those financial institutions on which the
	114	+	9 requirements of this Section would impose a hardship. In the
	115	+	10 case of a non-automated financial institution, a paper copy
	116	+	11 including either social security numbers or tax identification
	117	+	12 numbers is an acceptable format. In order to allow for data
	118	+	13 processing implementation, no agreement shall become effective
	119	+	14 earlier than 90 days after its execution.
	120	+	15 (e) All information provided by a financial institution
	121	+	16 under this Section is confidential and may be used only for the
	122	+	17 purpose of enforcing payment of delinquent taxes.
	123	+	18 (f) A financial institution that provides information
	124	+	19 under this Section shall not be liable to any account holder,
	125	+	20 owner, or other person in any civil, criminal, or
	126	+	21 administrative action for any of the following:
	127	+	22 (1) disclosing the required information to the
	128	+	23 Department, any other provisions of law notwithstanding;
	129	+	24 (2) holding, encumbering, or surrendering any of an
	130	+	25 individual's accounts as defined in subsection (a) of this
	131	+	26 Section in response to a lien or order to withhold and
	132	+
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	134	+
	135	+
	136	+
	137	+	SB3617 Enrolled - 4 - LRB103 34188 HLH 64011 b
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	142	+	1 deliver issued by the Department; or
	143	+	2 (3) any other action taken or omission made in good
	144	+	3 faith to comply with this Section, including individual or
	145	+	4 mechanical errors, provided that the action or omission
	146	+	5 does not constitute gross negligence or willful
	147	+	6 misconduct.
	148	+	7 (g) Each agreement under this Section shall provide that
	149	+	8 the Department shall pay to the financial institution
	150	+	9 providing or comparing the data a reasonable fee not to exceed
	151	+	10 the institution's actual cost of providing the data or
	152	+	11 performing the comparison.
	153	+
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	158	+	SB3617 Enrolled - 5 - LRB103 34188 HLH 64011 b