Illinois 2025-2026 Regular Session

Illinois House Bill HB0742 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	HB0742 EngrossedLRB104 04637 BAB 14664 b HB0742 Engrossed LRB104 04637 BAB 14664 b
2		-	HB0742 Engrossed LRB104 04637 BAB 14664 b
	1	+	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB0742 Introduced , by Rep. Emanuel "Chris" Welch SYNOPSIS AS INTRODUCED: 205 ILCS 5/1 from Ch. 17, par. 301 Amends the Illinois Banking Act. Makes a technical change in a Section concerning the short title. LRB104 04637 BAB 14664 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB0742 Introduced , by Rep. Emanuel "Chris" Welch SYNOPSIS AS INTRODUCED: 205 ILCS 5/1 from Ch. 17, par. 301 205 ILCS 5/1 from Ch. 17, par. 301 Amends the Illinois Banking Act. Makes a technical change in a Section concerning the short title. LRB104 04637 BAB 14664 b LRB104 04637 BAB 14664 b A BILL FOR
	2	+	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB0742 Introduced , by Rep. Emanuel "Chris" Welch SYNOPSIS AS INTRODUCED:
	3	+	205 ILCS 5/1 from Ch. 17, par. 301 205 ILCS 5/1 from Ch. 17, par. 301
	4	+	205 ILCS 5/1 from Ch. 17, par. 301
	5	+	Amends the Illinois Banking Act. Makes a technical change in a Section concerning the short title.
	6	+	LRB104 04637 BAB 14664 b LRB104 04637 BAB 14664 b
	7	+	LRB104 04637 BAB 14664 b
	8	+	A BILL FOR
	9	+	HB0742LRB104 04637 BAB 14664 b HB0742 LRB104 04637 BAB 14664 b
	10	+	HB0742 LRB104 04637 BAB 14664 b
3	11		1 AN ACT concerning regulation.
4	12		2 Be it enacted by the People of the State of Illinois,
5	13		3 represented in the General Assembly:
6		-	4 Article 1. General Provisions
7		-	5 Section 1-1. Short title. This Act may be cited as the
8		-	6 Digital Assets and Consumer Protection Act.
9		-	7 Section 1-5. Definitions.
10		-	8 (a) As used in this Act:
11		-	9 "Affiliate" means any person that controls, is controlled
12		-	10 by, or is under common control with another person. For
13		-	11 purposes of this definition, "control" means the possession,
14		-	12 direct or indirect, of the power to direct or cause the
15		-	13 direction of the management and policies of a person.
16		-	14 "Applicant" means a person that applies for registration
17		-	15 under this Act.
18		-	16 "Bank" means a bank, savings banks, savings and loan
19		-	17 association, savings association, or industrial loan company
20		-	18 chartered under the laws of this State or any other state or
21		-	19 under the laws of the United States.
22		-	20 "Confidential supervisory information" means information
23		-	21 or documents obtained by employees, agents, or representatives
24		-	22 of the Department in the course of any examination,
	14	+	4 Section 5. The Illinois Banking Act is amended by changing
	15	+	5 Section 1 as follows:
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33		-	1 investigation, audit, visit, registration, certification,
34		-	2 review, licensing, or any other regulatory or supervisory
35		-	3 activity pursuant to this Act, and any record prepared or
36		-	4 obtained by the Department to the extent that the record
37		-	5 summarizes or contains information derived from any report,
38		-	6 document, or record described in this Act.
39		-	7 "Conflict of interest" means an interest that might
40		-	8 incline a covered person or an individual who is an associated
41		-	9 person of a covered person to make a recommendation that is not
42		-	10 disinterested.
43		-	11 "Corporate fiduciary" shall mean a corporate fiduciary as
44		-	12 defined by Section 1-5.05 of the Corporate Fiduciary Act.
45		-	13 "Covered person" means a registrant or person required to
46		-	14 register pursuant to this Act.
47		-	15 "Covered exchange" means a covered person that exchanges
48		-	16 or holds itself out as being able to exchange a digital asset
49		-	17 for a resident.
50		-	18 "Credit union" means a credit union chartered under the
51		-	19 laws of this State or any other state or under the laws of the
52		-	20 United States.
53		-	21 "Department" means the Department of Financial and
54		-	22 Professional Regulation.
55		-	23 "Digital asset" means a digital representation of value
56		-	24 that is used as a medium of exchange, unit of account, or store
57		-	25 of value, and that is not fiat currency, whether or not
58		-	26 denominated in fiat currency. "Digital asset" does not include
	19	+	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB0742 Introduced , by Rep. Emanuel "Chris" Welch SYNOPSIS AS INTRODUCED:
	20	+	205 ILCS 5/1 from Ch. 17, par. 301 205 ILCS 5/1 from Ch. 17, par. 301
	21	+	205 ILCS 5/1 from Ch. 17, par. 301
	22	+	Amends the Illinois Banking Act. Makes a technical change in a Section concerning the short title.
	23	+	LRB104 04637 BAB 14664 b LRB104 04637 BAB 14664 b
	24	+	LRB104 04637 BAB 14664 b
	25	+	A BILL FOR
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	31	+	205 ILCS 5/1 from Ch. 17, par. 301
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69		-	1 any of the following:
70		-	2 (1) A digital representation of value which a merchant
71		-	3 grants, as part of an affinity or rewards program, and
72		-	4 that cannot be taken from or exchanged with the merchant
73		-	5 for fiat currency or a digital asset.
74		-	6 (2) A digital representation of value that is issued
75		-	7 by or on behalf of a game publisher, used solely within a
76		-	8 gaming platform, has no market or application outside of
77		-	9 such gaming platform, and cannot be converted into, or
78		-	10 redeemed for, fiat currency or digital assets.
79		-	11 (3) A digital representation of value that is used as
80		-	12 part of prepaid cards.
81		-	13 "Digital asset administration" means controlling,
82		-	14 administering, or issuing a digital asset. "Digital asset
83		-	15 administration" does not include the issuance of a
84		-	16 non-fungible token in and of itself.
85		-	17 "Digital asset business activity" means any of the
86		-	18 following:
87		-	19 (1) Exchanging, transferring, or storing a digital
88		-	20 asset.
89		-	21 (2) Engaging in digital asset administration.
90		-	22 (3) Any other business activity involving digital
91		-	23 assets designated by rule by the Department as may be
92		-	24 necessary and appropriate for the protection of residents.
93		-	25 "Digital asset business activity" does not include (1)
94		-	26 peer-to-peer exchanges or transfers of digital assets, (2)
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105		-	1 decentralized exchanges facilitating peer-to-peer exchanges or
106		-	2 transfers solely through use of a computer program or a
107		-	3 transaction protocol that is intended to automatically
108		-	4 execute, control, or document events and actions, and (3) the
109		-	5 development and dissemination of software in and of itself.
110		-	6 "Exchange", when used as a verb, means to exchange, buy,
111		-	7 sell, trade, or convert, on behalf of a resident, either of the
112		-	8 following:
113		-	9 (1) A digital asset for fiat currency or one or more
114		-	10 forms of digital assets.
115		-	11 (2) Fiat currency for one or more forms of digital
116		-	12 assets.
117		-	13 "Exchange" does not include buying, selling, or trading
118		-	14 digital assets for a person's own account in a principal
119		-	15 capacity.
120		-	16 "Executive officer" includes, without limitation, an
121		-	17 individual who is a director, officer, manager, managing
122		-	18 member, partner, or trustee, or other functionally equivalent
123		-	19 responsible individual, of a person.
124		-	20 "Federally insured depository institution" shall mean an
125		-	21 insured depository institution as defined by Section 3(c)(2)
126		-	22 of the Federal Deposit Insurance Act, 12 U.S.C. 1813(c)(2), as
127		-	23 amended, or an insured credit union as defined by Section
128		-	24 101(7) of the Federal Credit Union Act, 12 U.S.C. 1752(7), as
129		-	25 amended.
130		-	26 "Fiat currency" means a medium of exchange or unit of
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141		-	1 value issued by the United States or a foreign government and
142		-	2 that is designated as legal tender in its country of issuance.
143		-	3 "Insolvent" means any of the following:
144		-	4 (1) Having generally ceased to pay debts in the
145		-	5 ordinary course of business other than as a result of a
146		-	6 bona fide dispute.
147		-	7 (2) Being unable to pay debts as they become due.
148		-	8 (3) Being insolvent within the meaning of federal
149		-	9 bankruptcy law.
150		-	10 "Non-fungible token" means any unique digital identifier
151		-	11 on any blockchain or digital asset network used to certify
152		-	12 authenticity and ownership rights that is not readily
153		-	13 exchangeable or replaceable with a mutually interchangeable
154		-	14 digital asset of the same value. The Department may modify
155		-	15 this definition by rule.
156		-	16 "Person" includes, without limitation, any individual,
157		-	17 corporation, business trust, estate, trust, partnership,
158		-	18 proprietorship, syndicate, limited liability company,
159		-	19 association, joint venture, government, governmental
160		-	20 subsection, agency or instrumentality, public corporation or
161		-	21 joint stock company, or any other organization or legal or
162		-	22 commercial entity.
163		-	23 "Prepaid card" means an electronic payment device that,
164		-	24 subject to any rules adopted by the Department:
165		-	25 (1) is usable at a single merchant or an affiliated
166		-	26 group of merchants that share the same name, mark, or
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177		-	1 logo, or is usable at multiple, unaffiliated merchants or
178		-	2 service providers;
179		-	3 (2) is issued in and for a specified amount of fiat
180		-	4 currency;
181		-	5 (3) can be reloaded in and for only fiat currency, if
182		-	6 at all;
183		-	7 (4) is issued or reloaded on a prepaid basis for the
184		-	8 future purchase or delivery of goods or services;
185		-	9 (5) is honored upon presentation;
186		-	10 (6) can be redeemed in and for only fiat currency, if
187		-	11 at all;
188		-	12 (7) is governed by the Uniform Money Transmission
189		-	13 Modernization Act; and
190		-	14 (8) complies with any other condition designated by
191		-	15 rule by the Department as may be necessary and appropriate
192		-	16 for the protection of residents.
193		-	17 "Qualified custodian" means a bank, credit union, or trust
194		-	18 company, subject to any rules adopted by the Department.
195		-	19 "Record" means information that is inscribed on a tangible
196		-	20 medium or that is stored in an electronic or other medium and
197		-	21 is retrievable in perceivable form.
198		-	22 "Registrant" means a person registered under this Act.
199		-	23 "Resident" means any of the following:
200		-	24 (1) A person who is domiciled in this State.
201		-	25 (2) A person who is physically located in this State
202		-	26 for more than 183 days of the previous 365 days.
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213		-	1 (3) A person who has a place of business in this State.
214		-	2 (4) A legal representative of a person that is
215		-	3 domiciled in this State.
216		-	4 "Request for assistance" means all inquiries, complaints,
217		-	5 account disputes, and requests for documentation a covered
218		-	6 person receives from residents.
219		-	7 "Responsible individual" means an individual who has
220		-	8 direct control over, or significant management, policy, or
221		-	9 decision-making authority with respect to, a person's digital
222		-	10 asset business activity in this State.
223		-	11 "Secretary" means the Secretary of Financial and
224		-	12 Professional Regulation and any authorized representative of
225		-	13 the Secretary.
226		-	14 "Service provider" means any person that provides a
227		-	15 material service to a covered person in connection with the
228		-	16 offering or provision by that covered person of a digital
229		-	17 asset business activity in this State, including a person that
230		-	18 either:
231		-	19 (1) Participates in designing, operating, or
232		-	20 maintaining the digital asset business activity.
233		-	21 (2) Processes transactions relating to the digital
234		-	22 asset business activity, other than unknowingly or
235		-	23 incidentally transmitting or processing financial data in
236		-	24 a manner that the data is undifferentiated from other
237		-	25 types of data of the same form as the person transmits or
238		-	26 processes.
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249		-	1 "State" means a state of the United States, the District
250		-	2 of Columbia, Puerto Rico, the United States Virgin Islands, or
251		-	3 any territory or insular possession subject to the
252		-	4 jurisdiction of the United States.
253		-	5 "Store," "storage", and "storing", except in the phrase
254		-	6 "store of value," means to store, hold, or maintain custody or
255		-	7 control of a digital asset on behalf of a resident by a person
256		-	8 other than the resident.
257		-	9 "Transfer" means to transfer or transmit a digital asset
258		-	10 on behalf of a resident, including by doing any of the
259		-	11 following:
260		-	12 (1) Crediting the digital asset to the account or
261		-	13 storage of another person.
262		-	14 (2) Moving the digital asset from one account or
263		-	15 storage of a resident to another account or storage of the
264		-	16 same resident.
265		-	17 (3) Relinquishing custody or control of a digital
266		-	18 asset to another person.
267		-	19 "United States dollar equivalent of digital assets" means
268		-	20 the equivalent value of a particular digital asset in United
269		-	21 States dollars shown on a covered exchange regulated in the
270		-	22 United States for a particular date or period specified in
271		-	23 this Act, subject to any rules adopted by the Department.
272		-	24 (b) Whenever the terms "include", "including" or terms of
273		-	25 similar import appear in this Act, unless the context requires
274		-	26 otherwise, such terms shall not be construed to imply the
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285		-	1 exclusion of any person, class, or thing not specifically
286		-	2 included.
287		-	3 (c) A reference in this Act to any other law or statute of
288		-	4 this State, or of any other jurisdiction, means such law or
289		-	5 statute as amended to the effective date of this Act, and
290		-	6 unless the context otherwise requires, as amended thereafter.
291		-	7 (d) Any reference to this Act shall include any rules
292		-	8 adopted in accordance with this Act.
293		-	9 Section 1-10. Applicability.
294		-	10 (a) This Act governs the digital asset business activity
295		-	11 of a person doing business in this State or, wherever located,
296		-	12 who engages in or holds itself out as engaging in the activity
297		-	13 with or on behalf of a resident, to the extent not preempted by
298		-	14 federal law and except as otherwise provided in subsections
299		-	15 (b), (c), (d), or (e).
300		-	16 (b)(1) This Act does not apply to the exchange, transfer,
301		-	17 or storage of a digital asset or to digital asset
302		-	18 administration to the extent that:
303		-	19 (A) the Securities Exchange Act of 1934, 15 U.S.C.
304		-	20 78a et seq., or the Illinois Securities Law of 1953
305		-	21 govern the activity as a security transaction and the
306		-	22 activity is regulated by the U.S. Securities and
307		-	23 Exchange Commission or the Illinois Secretary of
308		-	24 State; or
309		-	25 (B) the Commodity Exchange Act, 7 U.S.C. 1 et
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320		-	1 seq., governs the activity, the activity is in
321		-	2 connection with trading of a contract of sale of a
322		-	3 commodity for future delivery, an option on such a
323		-	4 contract or a swap, and the activity is regulated by
324		-	5 the U.S. Commodity Futures Trading Commission.
325		-	6 (2) This subsection shall be construed in a manner
326		-	7 consistent with affording the greatest protection to
327		-	8 residents and the Department's authority under subsection
328		-	9 (a) of Section 1-15 to exercise nonexclusive oversight and
329		-	10 enforcement under any federal law applicable to digital
330		-	11 asset business activity. This subsection shall not be
331		-	12 construed to exempt an activity solely because a financial
332		-	13 regulatory agency has anti-fraud and anti-manipulation
333		-	14 enforcement authority over the activity.
334		-	15 (c) This Act does not apply to the following persons:
335		-	16 (1) The United States, a State, political subdivision
336		-	17 of a State, agency, or instrumentality of federal, State,
337		-	18 or local government, or a foreign government or a
338		-	19 subdivision, department, agency, or instrumentality of a
339		-	20 foreign government.
340		-	21 (2) A federally insured depository institution.
341		-	22 (3) A corporate fiduciary acting as a fiduciary or
342		-	23 otherwise engaging in fiduciary activities.
343		-	24 (4) A merchant using digital assets solely for the
344		-	25 purchase or sale of goods or services, excluding the sale
345		-	26 of purchase of digital assets, in the ordinary course of
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356		-	1 its business.
357		-	2 (5) A person using digital assets solely for the
358		-	3 purchase or sale of goods or services for his or her own
359		-	4 personal, family, or household purposes.
360		-	5 (6) A credit union with member share accounts insured
361		-	6 by an insurer approved by the credit union's primary
362		-	7 financial regulatory agency. An out-of-state credit union
363		-	8 may not conduct any activity in this State that is not
364		-	9 authorized for a credit union chartered under the laws of
365		-	10 this State.
366		-	11 Nothing in this Act grants persons described in this
367		-	12 subsection (c) authority to engage in any activity not
368		-	13 otherwise granted under existing law.
369		-	14 (d) The Department may by rule or order clarify whether an
370		-	15 activity is governed under this Act or another Act that
371		-	16 governs money transmission. This subsection (d) shall not be
372		-	17 applied in a manner inconsistent with the protection of
373		-	18 residents.
374		-	19 (e) Notwithstanding any other provision of this Act, the
375		-	20 Department, by rule or order, may conditionally or
376		-	21 unconditionally exempt any person, digital asset, or
377		-	22 transaction, or any class or classes of persons, digital
378		-	23 assets, or transactions, from any provision of this Act or of
379		-	24 any rule thereunder, to the extent that the exemption is
380		-	25 necessary or appropriate, in the public interest, and
381		-	26 consistent with the protection of residents.
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392		-	1 Section 1-15. General powers and duties.
393		-	2 (a) The Department shall regulate digital asset business
394		-	3 activity in this State, unless it is exempt pursuant to
395		-	4 Section 1-10. To the extent permissible under federal law, the
396		-	5 Department shall exercise nonexclusive oversight and
397		-	6 enforcement under any federal law applicable to digital asset
398		-	7 business activity.
399		-	8 (b) The functions, powers, and duties conferred upon the
400		-	9 Department by this Act are cumulative to any other functions,
401		-	10 powers, and duties conferred upon the Department by other laws
402		-	11 applicable to digital asset business activity.
403		-	12 (c) The Department shall have the following functions,
404		-	13 powers, and duties in carrying out its responsibilities under
405		-	14 this Act and any other law applicable to digital asset
406		-	15 business activity in this State:
407		-	16 (1) to issue or refuse to issue any registration or
408		-	17 other authorization under this Act;
409		-	18 (2) to revoke or suspend for cause any registration or
410		-	19 other authorization under this Act;
411		-	20 (3) to keep records of all registrations or other
412		-	21 authorizations under this Act;
413		-	22 (4) to receive, consider, investigate, and act upon
414		-	23 complaints made by any person relating to any digital
415		-	24 asset business activity in this State;
416		-	25 (5) to prescribe the forms of and receive:
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427		-	1 (A) applications for registrations or other
428		-	2 authorizations under this Act; and
429		-	3 (B) all reports and all books and records required
430		-	4 to be made under this Act;
431		-	5 (6) to subpoena documents and witnesses and compel
432		-	6 their attendance and production, to administer oaths, and
433		-	7 to require the production of any books, papers, or other
434		-	8 materials relevant to any inquiry authorized by this Act
435		-	9 or other law applicable to digital asset business activity
436		-	10 in this State;
437		-	11 (7) to issue orders against any person:
438		-	12 (A) if the Secretary has reasonable cause to
439		-	13 believe that an unsafe, unsound, or unlawful practice
440		-	14 has occurred, is occurring, or is about to occur;
441		-	15 (B) if any person has violated, is violating, or
442		-	16 is about to violate any law, rule, or written
443		-	17 agreement with the Secretary; or
444		-	18 (C) for the purpose of administering the
445		-	19 provisions of this Act or other law applicable to
446		-	20 digital asset business activity and any rule adopted
447		-	21 in accordance with this Act or other law applicable to
448		-	22 digital asset business activity;
449		-	23 (8) to address any inquiries to any covered person, or
450		-	24 the directors, officers, or employees of the covered
451		-	25 person, or the affiliates or service providers of the
452		-	26 covered person, in relation to the covered person's
453		-
454		-
455		-
456		-
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459		-
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463		-	1 activities and conditions or any other matter connected
464		-	2 with its affairs, and it shall be the duty of any person so
465		-	3 addressed to promptly reply in writing to those inquiries;
466		-	4 the Secretary may also require reports from any covered
467		-	5 person at any time the Secretary chooses;
468		-	6 (9) to examine the books and records of every covered
469		-	7 person, affiliate, or service provider;
470		-	8 (10) to enforce the provisions of this Act and any
471		-	9 state or federal law applicable to digital asset business
472		-	10 activity;
473		-	11 (11) to levy fees, fines, and civil penalties, charges
474		-	12 for services, and assessments to defray operating
475		-	13 expenses, including direct and indirect costs, of
476		-	14 administering this Act and other laws applicable to
477		-	15 digital asset business activity;
478		-	16 (12) to appoint examiners, supervisors, experts, and
479		-	17 special assistants as needed to effectively and
480		-	18 efficiently administer this Act and other laws applicable
481		-	19 to digital asset business activity;
482		-	20 (13) to conduct hearings for the purpose of carrying
483		-	21 out the purposes of this Act;
484		-	22 (14) to exercise visitorial power over a covered
485		-	23 person, affiliate, or service provider;
486		-	24 (15) to enter into cooperative agreements with federal
487		-	25 and state regulatory authorities and to accept reports of
488		-	26 examinations from federal and state regulatory
489		-
490		-
491		-
492		-
493		-
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495		-
496		-
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498		-	HB0742 Engrossed - 15 - LRB104 04637 BAB 14664 b
499		-	1 authorities;
500		-	2 (16) to assign on an emergency basis an examiner or
501		-	3 examiners to monitor the affairs of a covered person,
502		-	4 affiliate, or service provider with whatever frequency the
503		-	5 Secretary determines appropriate and to charge the covered
504		-	6 person for reasonable and necessary expenses of the
505		-	7 Secretary if in the opinion of the Secretary an emergency
506		-	8 exists or appears likely to occur;
507		-	9 (17) to impose civil penalties against a covered
508		-	10 person, affiliate, or service provider for failing to
509		-	11 respond to a regulatory request or reporting requirement;
510		-	12 and
511		-	13 (18) to conduct investigations, market surveillance,
512		-	14 and research, studies, and analyses of matters affecting
513		-	15 the interests of users of digital assets;
514		-	16 (19) to take such actions as the Secretary deems
515		-	17 necessary to educate and protect users of digital assets;
516		-	18 (20) to develop and implement initiatives and programs
517		-	19 to promote responsible innovation in digital asset
518		-	20 business activity; and
519		-	21 (21) to perform any other lawful acts necessary or
520		-	22 desirable to carry out the purposes and provisions of this
521		-	23 Act and other laws applicable to digital asset business
522		-	24 activity.
523		-	25 (d) The Department may share any information obtained
524		-	26 pursuant to this Act or any other law applicable to digital
525		-
526		-
527		-
528		-
529		-
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531		-
532		-
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534		-	HB0742 Engrossed - 16 - LRB104 04637 BAB 14664 b
535		-	1 asset business activity with law enforcement officials or
536		-	2 other regulatory agencies.
537		-	3 Section 1-20. Funds.
538		-	4 (a) All moneys collected or received by the Department
539		-	5 under this Act shall be deposited into the Consumer Protection
540		-	6 Fund, which is hereby created as a special fund in the State
541		-	7 treasury. The amounts deposited into the Consumer Protection
542		-	8 Fund shall be used for the ordinary and contingent expenses of
543		-	9 the Department in administering this Act and other financial
544		-	10 laws; nothing in this Act shall prevent the continuation of
545		-	11 the practice of paying expenses involving salaries,
546		-	12 retirement, social security, and State-paid insurance of State
547		-	13 officers and employees by appropriation from the General
548		-	14 Revenue Fund or any other fund. Moneys deposited into the
549		-	15 Consumer Protection Fund may be transferred to the Professions
550		-	16 Indirect Cost Fund or any other Department fund.
551		-	17 (b) The expenses of administering this Act, including
552		-	18 investigations and examinations provided for in this Act,
553		-	19 shall be borne by and assessed against persons regulated by
554		-	20 this Act. The Department may establish fees by rule, including
555		-	21 in the following categories:
556		-	22 (1) investigation of registrants and registration
557		-	23 applicant fees;
558		-	24 (2) examination fees;
559		-	25 (3) contingent fees; and
560		-
561		-
562		-
563		-
564		-
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566		-
567		-
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569		-	HB0742 Engrossed - 17 - LRB104 04637 BAB 14664 b
570		-	1 (4) such other categories as may be required to
571		-	2 administer this Act.
572		-	3 (c) The Department shall charge and collect fees from
573		-	4 covered persons, which shall be nonrefundable unless otherwise
574		-	5 indicated, for the expenses of administering this Act as
575		-	6 follows:
576		-	7 (1) Each covered person shall pay $150 for each hour
577		-	8 or part of an hour for each examiner or staff assigned to
578		-	9 the supervision of the covered person plus actual travel
579		-	10 costs for any examination of digital asset business
580		-	11 activity pursuant to the Act.
581		-	12 (2) Each covered person shall pay to the Department
582		-	13 its pro rata share of the cost for administration of this
583		-	14 Act that exceeds other fees listed in this Act, as
584		-	15 estimated by the Department, for the current year and any
585		-	16 deficit actually incurred in the administration of the Act
586		-	17 in prior years. The total annual assessment for all
587		-	18 registrants shall initially be divided into a
588		-	19 transaction-based assessment and a custody-based
589		-	20 assessment, each equal to approximately half the cost for
590		-	21 administration of this Act. Each registrant's pro rata
591		-	22 share of the transaction-based assessment shall be the
592		-	23 percentage that the total volume of digital asset
593		-	24 transactions conducted on behalf of residents by the
594		-	25 registrant bears to the total volume of digital asset
595		-	26 transactions by all registrants in Illinois. Each
596		-
597		-
598		-
599		-
600		-
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602		-
603		-
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605		-	HB0742 Engrossed - 18 - LRB104 04637 BAB 14664 b
606		-	1 registrant's pro rata share of the custody-based
607		-	2 assessment shall be the percentage that the total United
608		-	3 States dollar value of digital assets held in custody or
609		-	4 controlled by the registrant for residents bears to the
610		-	5 total United States dollar value held in custody or
611		-	6 controlled by all registrants in Illinois for residents.
612		-	7 (3) Beginning one year after the effective date of
613		-	8 this Act, the Department may, by rule, amend the fees set
614		-	9 forth in this subsection in accordance with this Act. The
615		-	10 Department is authorized to consider setting fees for
616		-	11 digital asset business activity based on the value of
617		-	12 digital assets transacted by covered persons, volume of
618		-	13 digital assets transacted by covered persons, the value of
619		-	14 digital assets held in custody by covered person, and the
620		-	15 volume of digital assets held in custody by covered
621		-	16 persons.
622		-	17 Article 5. Customer Protections
623		-	18 Section 5-5. Customer disclosures.
624		-	19 (a) When engaging in digital asset business activity with
625		-	20 a resident, a covered person shall provide to a resident the
626		-	21 customer disclosures required by subsection (b) and any
627		-	22 additional disclosures the Department by rule determines to be
628		-	23 necessary and appropriate for the protection of residents. The
629		-	24 Department may determine by rule the time and form required
630		-
631		-
632		-
633		-
634		-
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636		-
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639		-	HB0742 Engrossed - 19 - LRB104 04637 BAB 14664 b
640		-	1 for disclosures. A disclosure required by this Section shall
641		-	2 be made separately from any other information provided by the
642		-	3 covered person and in a clear and conspicuous manner in a
643		-	4 record the resident may keep.
644		-	5 (b) Before engaging in digital asset business activity
645		-	6 with a resident, a covered person shall disclose, to the
646		-	7 extent applicable to the digital asset business activity the
647		-	8 covered person will undertake with the resident, subject to
648		-	9 any rule or order issued by the Department, all of the
649		-	10 following:
650		-	11 (1) A schedule of fees and charges the covered person
651		-	12 may assess, the manner by which fees and charges will be
652		-	13 calculated if they are not set in advance and disclosed,
653		-	14 and the timing of the fees and charges.
654		-	15 (2) Whether the product or service provided by the
655		-	16 covered person is covered by either of the following:
656		-	17 (A) A form of insurance or other guarantee against
657		-	18 loss by an agency of the United States as follows:
658		-	19 (i) Up to the full United States dollar
659		-	20 equivalent of digital assets placed under the
660		-	21 custody or control of, or purchased from, the
661		-	22 covered person as of the date of the placement or
662		-	23 purchase, including the maximum amount provided by
663		-	24 insurance under the Federal Deposit Insurance
664		-	25 Corporation or National Credit Union
665		-	26 Administration or otherwise available from the
666		-
667		-
668		-
669		-
670		-
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672		-
673		-
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675		-	HB0742 Engrossed - 20 - LRB104 04637 BAB 14664 b
676		-	1 Securities Investor Protection Corporation.
677		-	2 (ii) If not provided at the full United States
678		-	3 dollar equivalent of the digital assets placed
679		-	4 under the custody or control of or purchased from
680		-	5 the covered person, the maximum amount of coverage
681		-	6 for each resident expressed in the United States
682		-	7 dollar equivalent of the digital asset.
683		-	8 (iii) If not applicable to the product or
684		-	9 service provided by the covered person, a clear
685		-	10 and conspicuous statement that the product is not
686		-	11 insured, as applicable, by the Federal Deposit
687		-	12 Insurance Corporation, National Credit Union
688		-	13 Administration, or the Securities Investor
689		-	14 Protection Corporation.
690		-	15 (B)(i) Private insurance against loss or theft,
691		-	16 including cybertheft or theft by other means.
692		-	17 (ii) A covered person shall disclose the terms
693		-	18 of the insurance policy to the resident in a
694		-	19 manner that allows the resident to understand the
695		-	20 specific insured risks that may result in partial
696		-	21 coverage of the resident's assets.
697		-	22 (3) The irrevocability of a transfer or exchange and
698		-	23 any exception to irrevocability.
699		-	24 (4) A description of all of the following:
700		-	25 (A) The covered person's liability for an
701		-	26 unauthorized, mistaken, or accidental transfer or
702		-
703		-
704		-
705		-
706		-
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708		-
709		-
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712		-	1 exchange.
713		-	2 (B) The resident's responsibility to provide
714		-	3 notice to the covered person of an unauthorized,
715		-	4 mistaken, or accidental transfer or exchange.
716		-	5 (C) The basis for any recovery by the resident
717		-	6 from the covered person in case of an unauthorized,
718		-	7 mistaken, or accidental transfer or exchange.
719		-	8 (D) General error resolution rights applicable to
720		-	9 an unauthorized, mistaken, or accidental transfer or
721		-	10 exchange.
722		-	11 (E) The method for the resident to update the
723		-	12 resident's contact information with the covered
724		-	13 person.
725		-	14 (5) That the date or time when the transfer or
726		-	15 exchange is made and the resident's account is debited may
727		-	16 differ from the date or time when the resident initiates
728		-	17 the instruction to make the transfer or exchange.
729		-	18 (6) Whether the resident has a right to stop a
730		-	19 preauthorized payment or revoke authorization for a
731		-	20 transfer and the procedure to initiate a stop-payment
732		-	21 order or revoke authorization for a subsequent transfer.
733		-	22 (7) The resident's right to receive a receipt, trade
734		-	23 ticket, or other evidence of the transfer or exchange.
735		-	24 (8) The resident's right to at least 14 days' prior
736		-	25 notice of a change in the covered person's fee schedule,
737		-	26 other terms and conditions that have a material impact on
738		-
739		-
740		-
741		-
742		-
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744		-
745		-
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747		-	HB0742 Engrossed - 22 - LRB104 04637 BAB 14664 b
748		-	1 digital asset business activity with the resident, or the
749		-	2 policies applicable to the resident's account.
750		-	3 (9) That no digital asset is currently recognized as
751		-	4 legal tender by the State of Illinois or the United
752		-	5 States.
753		-	6 (10)(A) A list of instances in the past 12 months when
754		-	7 the covered person's service was unavailable to customers
755		-	8 seeking to engage in digital asset business activity due
756		-	9 to a service outage on the part of the covered person and
757		-	10 the causes of each identified service outage.
758		-	11 (B) As part of the disclosure required by this
759		-	12 paragraph, the covered person may list any steps the
760		-	13 covered person has taken to resolve underlying causes
761		-	14 for those outages.
762		-	15 (11) A disclosure, provided separately from the
763		-	16 disclosures provided pursuant to paragraphs (1) to (10) of
764		-	17 this subsection and written prominently in bold type, that
765		-	18 the State of Illinois has not approved or endorsed any
766		-	19 digital assets or determined if this customer disclosure
767		-	20 is truthful or complete.
768		-	21 (c) Except as otherwise provided in subsection (d), at the
769		-	22 conclusion of a digital asset transaction with, or on behalf
770		-	23 of, a resident, a covered person shall provide the resident a
771		-	24 confirmation in a record which contains all of the following:
772		-	25 (1) The name and contact information of the covered
773		-	26 person, including the toll-free telephone number required
774		-
775		-
776		-
777		-
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780		-
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784		-	1 under Section 5-20.
785		-	2 (2) The type, value, date, precise time, and amount of
786		-	3 the transaction.
787		-	4 (3) The fee charged for the transaction, including any
788		-	5 charge for conversion of a digital asset to fiat currency
789		-	6 or other digital asset, as well as any indirect charges.
790		-	7 (d) If a covered person discloses that it will provide a
791		-	8 daily confirmation in the initial disclosure under subsection
792		-	9 (c), the covered person may elect to provide a single, daily
793		-	10 confirmation for all transactions with or on behalf of a
794		-	11 resident on that day instead of a per transaction
795		-	12 confirmation.
796		-	13 Section 5-10. Custody and protection of customer assets.
797		-	14 (a) A covered person that stores, holds, or maintains
798		-	15 custody or control of a digital asset for one or more persons
799		-	16 shall:
800		-	17 (1) at all times maintain an amount of each type of
801		-	18 digital asset sufficient to satisfy the aggregate
802		-	19 entitlements of the persons to the type of digital asset;
803		-	20 (2) segregate such digital assets from the other
804		-	21 assets of the covered person; and
805		-	22 (3) not sell, transfer, assign, lend, hypothecate,
806		-	23 pledge, or otherwise use or encumber such digital assets,
807		-	24 except for the sale, transfer, or assignment of such
808		-	25 digital assets at the direction of such other persons.
809		-
810		-
811		-
812		-
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815		-
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819		-	1 (b) If a covered person violates subsection (a), then the
820		-	2 property interests of the persons in the digital asset are pro
821		-	3 rata property interests in the type of digital asset to which
822		-	4 the persons are entitled without regard to the time the
823		-	5 persons became entitled to the digital asset or the covered
824		-	6 person obtained control of the digital asset.
825		-	7 (c) A digital asset subject to this Section is:
826		-	8 (1) held for the persons entitled to the digital asset
827		-	9 under subsection (a);
828		-	10 (2) not the property of the covered person; and
829		-	11 (3) not subject to the claims of creditors of the
830		-	12 covered person.
831		-	13 (d) Digital assets subject to this Section, even if
832		-	14 commingled with other assets of the covered person, are held
833		-	15 in trust for the benefit of the persons entitled to the digital
834		-	16 assets under subsection (a), in the event of insolvency, the
835		-	17 filing of a petition by or against the covered person under the
836		-	18 United States Bankruptcy Code (11 U.S.C. 101 et seq.) for
837		-	19 bankruptcy or reorganization, the filing of a petition by or
838		-	20 against the covered person for receivership, the commencement
839		-	21 of any other judicial or administrative proceeding for its
840		-	22 dissolution or reorganization, or an action by a creditor
841		-	23 against the covered person who is not a beneficiary of this
842		-	24 statutory trust. No digital asset impressed with a trust
843		-	25 pursuant to this subsection shall be subject to attachment,
844		-	26 levy of execution, or sequestration by order of any court,
845		-
846		-
847		-
848		-
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855		-	1 except for a beneficiary of this statutory trust.
856		-	2 (e) The Department may adopt rules applicable to covered
857		-	3 persons related to additional protections of customer assets,
858		-	4 including, but not limited to:
859		-	5 (1) rules requiring that digital assets and funds
860		-	6 controlled by the covered person on behalf of residents be
861		-	7 held in accounts segregated from the covered person's own
862		-	8 digital assets and funds;
863		-	9 (2) rules related to qualified custodians that may
864		-	10 hold such segregated accounts;
865		-	11 (3) rules related to titling of such segregated
866		-	12 accounts;
867		-	13 (4) rules related to audit requirements for customer
868		-	14 assets;
869		-	15 (5) rules requiring compliance with specific
870		-	16 provisions of the Uniform Commercial Code applicable to
871		-	17 digital assets;
872		-	18 (6) rules restricting selling, transferring,
873		-	19 assigning, lending, hypothecating, pledging, or otherwise
874		-	20 using or encumbering customer assets; and
875		-	21 (7) any rules as may be as may be necessary and
876		-	22 appropriate for the protection of residents or necessary
877		-	23 to effectuate the purposes of this Section.
878		-	24 Section 5-15. Covered exchanges.
879		-	25 (a)(1) Except as provided for under paragraph (2) of this
880		-
881		-
882		-
883		-
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890		-	1 subsection, a covered exchange, before listing or offering a
891		-	2 digital asset that the covered exchange can exchange on behalf
892		-	3 of a resident, shall certify on a form provided by the
893		-	4 Department that the covered exchange has done the following:
894		-	5 (A) Identified the risk that the digital asset would
895		-	6 be deemed a security by federal or state regulators.
896		-	7 (B) Provided, in writing, full and fair disclosure of
897		-	8 all material facts relating to conflicts of interest that
898		-	9 are associated with the covered exchange and the digital
899		-	10 asset.
900		-	11 (C) Conducted a comprehensive risk assessment designed
901		-	12 to ensure consumers are adequately protected from
902		-	13 cybersecurity risk, risk of malfeasance, including theft,
903		-	14 risks related to code or protocol defects, market-related
904		-	15 risks, including price manipulation and fraud, and any
905		-	16 other material risks.
906		-	17 (D) Established policies and procedures to reevaluate
907		-	18 the appropriateness of the continued listing or offering
908		-	19 of the digital asset, including an evaluation of whether
909		-	20 material changes have occurred.
910		-	21 (E) Established policies and procedures to cease
911		-	22 listing or offering the digital asset, including
912		-	23 notification to affected consumers and counterparties.
913		-	24 (F) Any other requirement designated by rule by the
914		-	25 Department as may be necessary and appropriate for the
915		-	26 protection of residents.
916		-
917		-
918		-
919		-
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923		-
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925		-	HB0742 Engrossed - 27 - LRB104 04637 BAB 14664 b
926		-	1 (2) Certification by a covered exchange shall not be
927		-	2 required for any digital asset approved for listing on or
928		-	3 before the effective date of this Act by the New York
929		-	4 Department of Financial Services pursuant to Part 200 of Title
930		-	5 23 of the New York Code of Rules and Regulations, if the
931		-	6 covered exchange provides notification to the Department on a
932		-	7 form provided by the Department.
933		-	8 (3) After a finding that a covered exchange has listed or
934		-	9 offered a digital asset without appropriate certification or
935		-	10 after a finding that misrepresentations were made in the
936		-	11 certification process, the Department may require the covered
937		-	12 exchange to cease listing or offering the digital asset and
938		-	13 may take an enforcement action under Section 20-50 of this
939		-	14 Act.
940		-	15 (b)(1) A covered exchange shall make every effort to
941		-	16 execute a resident's request to exchange a digital asset that
942		-	17 the covered exchange receives fully and promptly.
943		-	18 (2)(A) A covered exchange shall use reasonable diligence
944		-	19 to ensure that the outcome to the resident is as favorable as
945		-	20 possible under prevailing market conditions. Compliance with
946		-	21 this paragraph shall be determined by factors, including, but
947		-	22 not limited to, all of the following:
948		-	23 (i) The character of the market for the digital asset,
949		-	24 including price and volatility.
950		-	25 (ii) The size and type of transaction.
951		-	26 (iii) The number of markets checked.
952		-
953		-
954		-
955		-
956		-
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958		-
959		-
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961		-	HB0742 Engrossed - 28 - LRB104 04637 BAB 14664 b
962		-	1 (iv) Accessibility of appropriate pricing.
963		-	2 (v) Any other factor designated by rule by the
964		-	3 Department as may be necessary and appropriate for the
965		-	4 protection of residents.
966		-	5 (B) At least once every 6 months, a covered exchange shall
967		-	6 review aggregated trading records of residents against
968		-	7 benchmarks to determine execution quality, investigate the
969		-	8 causes of any variance, and promptly take action to remedy
970		-	9 issues identified in that review.
971		-	10 (3) In a transaction for or with a resident, the covered
972		-	11 exchange shall not interject a third party between the covered
973		-	12 exchange and the best market for the digital asset in a manner
974		-	13 inconsistent with this subsection.
975		-	14 (4) If a covered exchange cannot execute directly with a
976		-	15 market and employs other means in order to ensure an execution
977		-	16 advantageous to the resident, the burden of showing the
978		-	17 acceptable circumstances for doing so is on the covered
979		-	18 exchange.
980		-	19 Section 5-20. Customer service; requests for assistance.
981		-	20 (a) A covered person shall prominently display on its
982		-	21 internet website a toll-free telephone number through which a
983		-	22 resident can contact the covered person for requests for
984		-	23 assistance and receive live customer assistance, subject to
985		-	24 any rules adopted by the Department.
986		-	25 (b) A covered person shall implement reasonable policies
987		-
988		-
989		-
990		-
991		-
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993		-
994		-
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996		-	HB0742 Engrossed - 29 - LRB104 04637 BAB 14664 b
997		-	1 and procedures for accepting, processing, investigating, and
998		-	2 responding to requests for assistance in a timely and
999		-	3 effective manner. Such policies and procedures shall include
1000		-	4 all of the following:
1001		-	5 (1) A procedure for resolving disputes between the
1002		-	6 covered person and a resident.
1003		-	7 (2) A procedure for a resident to report an
1004		-	8 unauthorized, mistaken, or accidental digital asset
1005		-	9 business activity transaction.
1006		-	10 (3) A procedure for a resident to file a complaint
1007		-	11 with the covered person and for the resolution of the
1008		-	12 complaint in a fair and timely manner with notice to the
1009		-	13 resident as soon as reasonably practical of the resolution
1010		-	14 and the reasons for the resolution.
1011		-	15 (4) Any other procedure designated by rule by the
1012		-	16 Department as may be necessary and appropriate for the
1013		-	17 protection of residents.
1014		-	18 Section 5-25. Collection of compensation. Unless exempt
1015		-	19 from registration under this Act, no person engaged in or
1016		-	20 offering to engage in any act or service for which a
1017		-	21 registration under this Act is required may bring or maintain
1018		-	22 any action in any court to collect compensation for the
1019		-	23 performance of the registrable services without alleging and
1020		-	24 proving that he or she was the holder of a valid registration
1021		-	25 under this Act at all times during the performance of those
1022		-
1023		-
1024		-
1025		-
1026		-
1027		-	HB0742 Engrossed - 29 - LRB104 04637 BAB 14664 b
1028		-
1029		-
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1031		-	HB0742 Engrossed - 30 - LRB104 04637 BAB 14664 b
1032		-	1 services.
1033		-	2 Article 10. Compliance
1034		-	3 Section 10-5. General requirements.
1035		-	4 (a) Each registrant is required to comply with the
1036		-	5 provisions of this Act, any lawful order, rule, or regulation
1037		-	6 made or issued under the provisions of this Act, and all
1038		-	7 applicable federal and State laws, rules, and regulations.
1039		-	8 (b) Each registrant shall designate a qualified individual
1040		-	9 or individuals responsible for coordinating and monitoring
1041		-	10 compliance with subsection (a).
1042		-	11 (c) Each registrant shall maintain, implement, update, and
1043		-	12 enforce written compliance policies and procedures, in
1044		-	13 accordance with Section 10-10 and subject to any rules adopted
1045		-	14 by the Department, which policies and procedures must be
1046		-	15 reviewed and approved by the registrant's board of directors
1047		-	16 or an equivalent governing body of the registrant.
1048		-	17 Section 10-10. Required policies and procedures.
1049		-	18 (a) An applicant, before submitting an application, shall
1050		-	19 create and a registrant, during registration, shall maintain,
1051		-	20 implement, update, and enforce, written compliance policies
1052		-	21 and procedures for all of the following:
1053		-	22 (1) A cybersecurity program.
1054		-	23 (2) A business continuity program.
1055		-
1056		-
1057		-
1058		-
1059		-
1060		-	HB0742 Engrossed - 30 - LRB104 04637 BAB 14664 b
1061		-
1062		-
1063		-	HB0742 Engrossed- 31 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 31 - LRB104 04637 BAB 14664 b
1064		-	HB0742 Engrossed - 31 - LRB104 04637 BAB 14664 b
1065		-	1 (3) A disaster recovery program.
1066		-	2 (4) An anti-fraud program.
1067		-	3 (5) An anti-money laundering and countering the
1068		-	4 financing of terrorism program.
1069		-	5 (6) An operational security program.
1070		-	6 (7)(A) A program designed to ensure compliance with
1071		-	7 this Act and other laws of this State or federal laws that
1072		-	8 are relevant to the digital asset business activity
1073		-	9 contemplated by the registrant with or on behalf of
1074		-	10 residents and to assist the registrant in achieving the
1075		-	11 purposes of other State laws and federal laws if violation
1076		-	12 of those laws has a remedy under this Act.
1077		-	13 (B) At a minimum, the program described by this
1078		-	14 paragraph shall specify the policies and procedures that
1079		-	15 the registrant undertakes to minimize the risk that the
1080		-	16 registrant facilitates the exchange of unregistered
1081		-	17 securities.
1082		-	18 (8) A conflict of interest program.
1083		-	19 (9) A request for assistance program to comply with
1084		-	20 Section 5-20.
1085		-	21 (10) Any other compliance program, policy, or
1086		-	22 procedure the Department establishes by rule as necessary
1087		-	23 for the protection of residents or for the safety and
1088		-	24 soundness of the registrant's business or to effectuate
1089		-	25 the purposes of this Act.
1090		-	26 (b) A policy required by subsection (a) shall be
1091		-
1092		-
1093		-
1094		-
1095		-
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1097		-
1098		-
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1100		-	HB0742 Engrossed - 32 - LRB104 04637 BAB 14664 b
1101		-	1 maintained in a record and designed to be adequate for a
1102		-	2 registrant's contemplated digital asset business activity with
1103		-	3 or on behalf of residents, considering the circumstances of
1104		-	4 all participants and the safe operation of the activity. Any
1105		-	5 policy and implementing procedure shall be compatible with
1106		-	6 other policies and the procedures implementing them and not
1107		-	7 conflict with policies or procedures applicable to the
1108		-	8 registrant under other State law.
1109		-	9 (c) A registrant's anti-fraud program shall include, at a
1110		-	10 minimum, all of the following:
1111		-	11 (1) Identification and assessment of the material
1112		-	12 risks of its digital asset business activity related to
1113		-	13 fraud, which shall include any form of market manipulation
1114		-	14 and insider trading by the registrant, its employees, its
1115		-	15 associated persons, or its customers.
1116		-	16 (2) Protection against any material risk related to
1117		-	17 fraud identified by the Department or the registrant.
1118		-	18 (3) Periodic evaluation and revision of the anti-fraud
1119		-	19 program, policies, and procedures.
1120		-	20 (d) A registrant's anti-money laundering and countering
1121		-	21 the financing of terrorism program shall include, at a
1122		-	22 minimum, all of the following:
1123		-	23 (1) Identification and assessment of the material
1124		-	24 risks of its digital asset business activity related to
1125		-	25 money laundering and financing of terrorist activity.
1126		-	26 (2) Procedures, in accordance with federal law or
1127		-
1128		-
1129		-
1130		-
1131		-
1132		-	HB0742 Engrossed - 32 - LRB104 04637 BAB 14664 b
1133		-
1134		-
1135		-	HB0742 Engrossed- 33 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 33 - LRB104 04637 BAB 14664 b
1136		-	HB0742 Engrossed - 33 - LRB104 04637 BAB 14664 b
1137		-	1 guidance published by federal agencies responsible for
1138		-	2 enforcing federal law, pertaining to money laundering and
1139		-	3 financing of terrorist activity.
1140		-	4 (3) Filing reports under the Bank Secrecy Act, 31
1141		-	5 U.S.C. 5311 et seq., or Chapter X of Title 31 of the Code
1142		-	6 of Federal Regulations and other federal or State law
1143		-	7 pertaining to the prevention or detection of money
1144		-	8 laundering or financing of terrorist activity.
1145		-	9 (e) A registrant's operational security program shall
1146		-	10 include, at a minimum, reasonable and appropriate
1147		-	11 administrative, physical, and technical safeguards to protect
1148		-	12 the confidentiality, integrity, and availability of any
1149		-	13 nonpublic information or digital asset it receives, maintains,
1150		-	14 or transmits.
1151		-	15 (f)(1) A registrant's cybersecurity program shall include,
1152		-	16 at a minimum, all of the following:
1153		-	17 (A) Maintaining, updating, and enforcing policies and
1154		-	18 procedures designed to protect the confidentiality,
1155		-	19 integrity, and availability of the registrant's
1156		-	20 information systems and nonpublic information stored on
1157		-	21 those information systems.
1158		-	22 (B) Implementing and maintaining a written policy or
1159		-	23 policies, approved at least annually by an executive
1160		-	24 officer or the registrant's board of directors, or an
1161		-	25 appropriate committee thereof, or equivalent governing
1162		-	26 body, setting forth the registrant's policies and
1163		-
1164		-
1165		-
1166		-
1167		-
1168		-	HB0742 Engrossed - 33 - LRB104 04637 BAB 14664 b
1169		-
1170		-
1171		-	HB0742 Engrossed- 34 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 34 - LRB104 04637 BAB 14664 b
1172		-	HB0742 Engrossed - 34 - LRB104 04637 BAB 14664 b
1173		-	1 procedures for the protection of its information systems
1174		-	2 and nonpublic information stored on those information
1175		-	3 systems.
1176		-	4 (C) Designating a qualified individual responsible for
1177		-	5 overseeing and implementing the registrant's cybersecurity
1178		-	6 program and enforcing its cybersecurity policy. The
1179		-	7 individual must have adequate authority to ensure
1180		-	8 cybersecurity risks are appropriately managed, including
1181		-	9 the ability to direct sufficient resources to implement
1182		-	10 and maintain a cybersecurity program. The individual may
1183		-	11 be employed by the registrant, one of its affiliates, or a
1184		-	12 service provider.
1185		-	13 (2) To assist in carrying out this subsection, the
1186		-	14 Department may adopt rules to define terms used in this
1187		-	15 subsection and to establish specific requirements for the
1188		-	16 required cybersecurity program, including, but not limited to,
1189		-	17 rules related to:
1190		-	18 (A) penetration testing and vulnerability assessment;
1191		-	19 (B) audit trails;
1192		-	20 (C) access privileges;
1193		-	21 (D) application security;
1194		-	22 (E) risk assessment;
1195		-	23 (F) cybersecurity personnel and intelligence;
1196		-	24 (G) affiliates and service providers;
1197		-	25 (H) authentication;
1198		-	26 (I) data retention;
1199		-
1200		-
1201		-
1202		-
1203		-
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1205		-
1206		-
1207		-	HB0742 Engrossed- 35 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 35 - LRB104 04637 BAB 14664 b
1208		-	HB0742 Engrossed - 35 - LRB104 04637 BAB 14664 b
1209		-	1 (J) training and monitoring;
1210		-	2 (K) encryption;
1211		-	3 (L) incident response;
1212		-	4 (M) notice of cybersecurity events; and
1213		-	5 (N) any other requirement necessary and appropriate
1214		-	6 for the protection of residents or for the safety and
1215		-	7 soundness of the registrant or to effectuate the purposes
1216		-	8 of this subsection.
1217		-	9 (g) The Department may require a registrant to file with
1218		-	10 the Department a copy of any report it makes to a federal or
1219		-	11 state authority.
1220		-	12 (h) After the policies and procedures required under this
1221		-	13 Article are created and approved by the registrant, the
1222		-	14 registrant shall engage a qualified individual or individuals
1223		-	15 with adequate authority and experience to monitor and
1224		-	16 implement each policy and procedure, publicize it as
1225		-	17 appropriate, recommend changes as necessary, and enforce it.
1226		-	18 Article 15. Registration
1227		-	19 Section 15-5. Registration required. A person shall not
1228		-	20 engage in digital asset business activity, or hold itself out
1229		-	21 as being able to engage in digital asset business activity,
1230		-	22 with or on behalf of a resident unless the person is registered
1231		-	23 in this State by the Department under this Article, or the
1232		-	24 person is exempt from registration pursuant to Section 1-10.
1233		-
1234		-
1235		-
1236		-
1237		-
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1239		-
1240		-
1241		-	HB0742 Engrossed- 36 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 36 - LRB104 04637 BAB 14664 b
1242		-	HB0742 Engrossed - 36 - LRB104 04637 BAB 14664 b
1243		-	1 Section 15-10. Application.
1244		-	2 (a) An application for a registration under this Act shall
1245		-	3 meet all of the following requirements:
1246		-	4 (1) The application shall be in a form and medium
1247		-	5 prescribed by the Department. The Department may require
1248		-	6 the filing of the application through a multistate
1249		-	7 licensing system.
1250		-	8 (2) The application shall provide all of the following
1251		-	9 information relevant to the applicant's proposed digital
1252		-	10 asset business activity:
1253		-	11 (A) The legal name of the applicant, any current
1254		-	12 or proposed business United States Postal Service
1255		-	13 address of the applicant, and any fictitious or trade
1256		-	14 name the applicant uses or plans to use in conducting
1257		-	15 the applicant's digital asset business activity with
1258		-	16 or on behalf of a resident.
1259		-	17 (B) The legal name, any former or fictitious name,
1260		-	18 and the residential and business United States Postal
1261		-	19 Service address of any executive officer and
1262		-	20 responsible individual of the applicant and any person
1263		-	21 that has control of the applicant.
1264		-	22 (C) A description of the current and former
1265		-	23 business of the applicant and any affiliate of the
1266		-	24 applicant for the 5 years before the application is
1267		-	25 submitted, or, if the business has operated for less
1268		-
1269		-
1270		-
1271		-
1272		-
1273		-	HB0742 Engrossed - 36 - LRB104 04637 BAB 14664 b
1274		-
1275		-
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1277		-	HB0742 Engrossed - 37 - LRB104 04637 BAB 14664 b
1278		-	1 than 5 years, for the time the business has operated,
1279		-	2 including its products and services, associated
1280		-	3 internet website addresses and social media pages,
1281		-	4 principal place of business, projected user base, and
1282		-	5 specific marketing targets.
1283		-	6 (D) A list of all of the following:
1284		-	7 (i) Any digital asset, money service, or money
1285		-	8 transmitter registration the applicant and any
1286		-	9 affiliates hold in another state or from an agency
1287		-	10 of the United States.
1288		-	11 (ii) The date the registrations described in
1289		-	12 subdivision (i) expire.
1290		-	13 (iii) Any revocation, suspension, or other
1291		-	14 disciplinary action taken against the applicant
1292		-	15 and any affiliates in any state or by an agency of
1293		-	16 the United States and any applications rejected by
1294		-	17 any state or agency of the United States.
1295		-	18 (E) A list of any criminal conviction, deferred
1296		-	19 prosecution agreement, and pending criminal proceeding
1297		-	20 in any jurisdiction against all of the following:
1298		-	21 (i) The applicant.
1299		-	22 (ii) Any executive officer of the applicant.
1300		-	23 (iii) Any responsible individual of the
1301		-	24 applicant.
1302		-	25 (iv) Any person that has control over the
1303		-	26 applicant.
1304		-
1305		-
1306		-
1307		-
1308		-
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1310		-
1311		-
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1313		-	HB0742 Engrossed - 38 - LRB104 04637 BAB 14664 b
1314		-	1 (v) Any affiliate of the applicant.
1315		-	2 (F) A list of any litigation, arbitration, or
1316		-	3 administrative proceeding in any jurisdiction in which
1317		-	4 the applicant or an executive officer, responsible
1318		-	5 individual, or affiliate of the applicant has been a
1319		-	6 party for the 10 years before the application is
1320		-	7 submitted determined to be material in accordance with
1321		-	8 generally accepted accounting principles and, to the
1322		-	9 extent the applicant or such other person would be
1323		-	10 required to disclose the litigation, arbitration, or
1324		-	11 administrative proceeding in the applicant's or such
1325		-	12 other person's audited financial statements, reports
1326		-	13 to equity owners, and similar statements or reports.
1327		-	14 (G) A list of any bankruptcy or receivership
1328		-	15 proceeding in any jurisdiction for the 10 years before
1329		-	16 the application is submitted in which any of the
1330		-	17 following was a debtor:
1331		-	18 (i) The applicant.
1332		-	19 (ii) An executive officer of the applicant.
1333		-	20 (iii) A responsible individual of the
1334		-	21 applicant.
1335		-	22 (iv) A person that has control over the
1336		-	23 applicant.
1337		-	24 (v) An affiliate of the applicant.
1338		-	25 (H) The name and United States Postal Service
1339		-	26 address of any bank or credit union in which the
1340		-
1341		-
1342		-
1343		-
1344		-
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1346		-
1347		-
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1349		-	HB0742 Engrossed - 39 - LRB104 04637 BAB 14664 b
1350		-	1 applicant and any affiliates plan to deposit funds
1351		-	2 obtained by digital asset business activity.
1352		-	3 (I) The source of funds and credit to be used by
1353		-	4 the applicant and any affiliate to conduct digital
1354		-	5 asset business activity with or on behalf of a
1355		-	6 resident.
1356		-	7 (J) A current financial statement and other
1357		-	8 documentation satisfactory to the Department
1358		-	9 demonstrating that the applicant has the capital and
1359		-	10 liquidity required by Section 20-5.
1360		-	11 (K) The United States Postal Service address and
1361		-	12 email address to which communications from the
1362		-	13 Department can be sent.
1363		-	14 (L) The name, United States Postal Service
1364		-	15 address, and email address of the registered agent of
1365		-	16 the applicant in this State.
1366		-	17 (M) A copy of the certificate, or a detailed
1367		-	18 summary acceptable to the Department, of coverage for
1368		-	19 any liability, casualty, business interruption, or
1369		-	20 cybersecurity insurance policy maintained by the
1370		-	21 applicant for itself, an executive officer, a
1371		-	22 responsible individual, an affiliate, or the
1372		-	23 applicant's users.
1373		-	24 (N) If applicable, the date on which and the state
1374		-	25 in which the applicant is formed and a copy of a
1375		-	26 current certificate of good standing issued by that
1376		-
1377		-
1378		-
1379		-
1380		-
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1382		-
1383		-
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1385		-	HB0742 Engrossed - 40 - LRB104 04637 BAB 14664 b
1386		-	1 state.
1387		-	2 (O) If a person has control of the applicant and
1388		-	3 the person's equity interests are publicly traded in
1389		-	4 the United States, a copy of the audited financial
1390		-	5 statement of the person for the most recent fiscal
1391		-	6 year or most recent report of the person filed under
1392		-	7 Section 13 of the Securities Exchange Act of 1934, 15
1393		-	8 U.S.C. 78m.
1394		-	9 (P) If a person has control of the applicant and
1395		-	10 the person's equity interests are publicly traded
1396		-	11 outside the United States, a copy of the audited
1397		-	12 financial statement of the person for the most recent
1398		-	13 fiscal year of the person or a copy of the most recent
1399		-	14 documentation similar to that required in subparagraph
1400		-	15 (O) filed with the foreign regulator in the domicile
1401		-	16 of the person.
1402		-	17 (Q) If the applicant is a partnership or a
1403		-	18 member-managed limited liability company, the names
1404		-	19 and United States Postal Service addresses of any
1405		-	20 general partner or member.
1406		-	21 (R) If the applicant is required to register with
1407		-	22 the Financial Crimes Enforcement Network of the United
1408		-	23 States Department of the Treasury as a money service
1409		-	24 business, evidence of the registration.
1410		-	25 (S) A set of fingerprints for each executive
1411		-	26 officer and responsible individual of the applicant.
1412		-
1413		-
1414		-
1415		-
1416		-
1417		-	HB0742 Engrossed - 40 - LRB104 04637 BAB 14664 b
1418		-
1419		-
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1421		-	HB0742 Engrossed - 41 - LRB104 04637 BAB 14664 b
1422		-	1 (T) If available, for any executive officer and
1423		-	2 responsible individual of the applicant, for the 10
1424		-	3 years before the application is submitted, employment
1425		-	4 history and history of any investigation of the
1426		-	5 individual or legal proceeding to which the individual
1427		-	6 was a party.
1428		-	7 (U) The plans through which the applicant will
1429		-	8 meet its obligations under Article 10.
1430		-	9 (V) Any other information the Department requires
1431		-	10 by rule.
1432		-	11 (3) The application shall be accompanied by a
1433		-	12 nonrefundable fee of $5,000 or the amount determined by
1434		-	13 the Department to cover the costs of application review,
1435		-	14 whichever is greater.
1436		-	15 (b)(1) On receipt of a completed application, the
1437		-	16 Department shall investigate all of the following:
1438		-	17 (A) The financial condition and responsibility of the
1439		-	18 applicant and any affiliate of the applicant.
1440		-	19 (B) The relevant financial and business experience,
1441		-	20 character, and general fitness of the applicant and any
1442		-	21 affiliate of the applicant.
1443		-	22 (C) The competence, experience, character, and general
1444		-	23 fitness of each executive officer and director, each
1445		-	24 responsible individual, and any person that has control of
1446		-	25 the applicant.
1447		-	26 (2) On receipt of a completed application, the Department
1448		-
1449		-
1450		-
1451		-
1452		-
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1454		-
1455		-
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1457		-	HB0742 Engrossed - 42 - LRB104 04637 BAB 14664 b
1458		-	1 may investigate the business premises of an applicant or an
1459		-	2 affiliate of the applicant or require the submission of any
1460		-	3 other documents or information the Department deems relevant
1461		-	4 to the application.
1462		-	5 (3) The investigation required by this subsection must
1463		-	6 allow the Secretary to issue positive findings stating that
1464		-	7 the financial condition, financial responsibility, competence,
1465		-	8 experience, character, and general fitness of the applicant,
1466		-	9 each executive officer and director, each responsible
1467		-	10 individual, any person that has control of the applicant, and
1468		-	11 any affiliate of the applicant are such as to command the
1469		-	12 confidence of the community and to warrant belief that the
1470		-	13 business will be operated honestly, fairly, and efficiently
1471		-	14 within the purpose of this Act; if the Secretary does not so
1472		-	15 find, he or she shall not issue the registration, and he or she
1473		-	16 shall notify the applicant of the denial.
1474		-	17 (c)(1) After completing the investigation required by
1475		-	18 subsection (b), the Department shall send the applicant notice
1476		-	19 of its decision to approve, conditionally approve, or deny the
1477		-	20 application. If the Department does not receive notice from
1478		-	21 the applicant that the applicant accepts conditions specified
1479		-	22 by the Department within 31 days following the Department's
1480		-	23 notice of the conditions, the application shall be deemed
1481		-	24 withdrawn.
1482		-	25 (2) The Secretary may impose conditions on a registration
1483		-	26 if the Secretary determines that those conditions are
1484		-
1485		-
1486		-
1487		-
1488		-
1489		-	HB0742 Engrossed - 42 - LRB104 04637 BAB 14664 b
1490		-
1491		-
1492		-	HB0742 Engrossed- 43 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 43 - LRB104 04637 BAB 14664 b
1493		-	HB0742 Engrossed - 43 - LRB104 04637 BAB 14664 b
1494		-	1 necessary or appropriate. These conditions shall be imposed in
1495		-	2 writing and shall continue in effect for the period prescribed
1496		-	3 by the Secretary.
1497		-	4 (d) A registration issued pursuant to this Act shall take
1498		-	5 effect on the later of the following:
1499		-	6 (1) The date the Department issues the registration.
1500		-	7 (2) The date the registration provides the security
1501		-	8 required by Section 20-5.
1502		-	9 (e) In addition to the fee required by paragraph (3) of
1503		-	10 subsection (a), an applicant shall pay the costs of the
1504		-	11 Department's investigation under subsection (b).
1505		-	12 (f) A registration issued pursuant to this Act shall
1506		-	13 remain in full force and effect until it expires without
1507		-	14 renewal, is surrendered by the registration, or revoked or
1508		-	15 suspended as hereinafter provided.
1509		-	16 (g)(1) The Department may issue a conditional registration
1510		-	17 to an applicant who holds or maintains a registration to
1511		-	18 conduct virtual currency business activity in the State of New
1512		-	19 York pursuant to Part 200 of Title 23 of the New York Code of
1513		-	20 Rules and Regulations, or a charter as a New York State limited
1514		-	21 purpose trust company with approval to conduct virtual
1515		-	22 currency business under the New York Banking Law, if the
1516		-	23 registration or approval was issued no later than the
1517		-	24 effective date of this Act and the applicant pays all
1518		-	25 appropriate fees and complies with the requirements of this
1519		-	26 Act.
1520		-
1521		-
1522		-
1523		-
1524		-
1525		-	HB0742 Engrossed - 43 - LRB104 04637 BAB 14664 b
1526		-
1527		-
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1529		-	HB0742 Engrossed - 44 - LRB104 04637 BAB 14664 b
1530		-	1 (2) A conditional registration issued pursuant to this
1531		-	2 subsection shall expire at the earliest of the following:
1532		-	3 (A) upon issuance of an unconditional registration;
1533		-	4 (B) upon denial of a registration;
1534		-	5 (C) upon revocation of a registration issued pursuant
1535		-	6 to Part 200 of Title 23 of the New York Code of Rules and
1536		-	7 Regulations or disapproval or revocation of a charter as a
1537		-	8 New York State limited purpose trust company with approval
1538		-	9 to conduct virtual currency business under the New York
1539		-	10 Banking Law.
1540		-	11 Section 15-15. Renewal.
1541		-	12 (a) Registrations shall be subject to renewal every year
1542		-	13 using a common renewal period as established by the Department
1543		-	14 by rule. A registrant may apply for renewal of the
1544		-	15 registration by submitting a renewal application under
1545		-	16 subsection (b) and paying all applicable fees due to the
1546		-	17 Department.
1547		-	18 (b) The renewal application required by subsection (a)
1548		-	19 shall be submitted in a form and medium prescribed by the
1549		-	20 Department. The application shall contain all of the
1550		-	21 following:
1551		-	22 (1) Either a copy of the registrant's most recent
1552		-	23 reviewed annual financial statement, if the gross revenue
1553		-	24 generated by the registrant's digital asset business
1554		-	25 activity in this State was not more than $2,000,000 for
1555		-
1556		-
1557		-
1558		-
1559		-
1560		-	HB0742 Engrossed - 44 - LRB104 04637 BAB 14664 b
1561		-
1562		-
1563		-	HB0742 Engrossed- 45 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 45 - LRB104 04637 BAB 14664 b
1564		-	HB0742 Engrossed - 45 - LRB104 04637 BAB 14664 b
1565		-	1 the fiscal year ending before the anniversary date of
1566		-	2 issuance of its registration under this Act, or a copy of
1567		-	3 the registrant's most recent audited annual financial
1568		-	4 statement, if the registrant's digital asset business
1569		-	5 activity in this State amounted to more than $2,000,000,
1570		-	6 for the fiscal year ending before the anniversary date.
1571		-	7 (2) If a person other than an individual has control
1572		-	8 of the registrant, a copy of either of the following:
1573		-	9 (A) The person's most recent reviewed annual
1574		-	10 financial statement, if the person's gross revenue was
1575		-	11 not more than $2,000,000 in the previous fiscal year
1576		-	12 measured as of the anniversary date of issuance of its
1577		-	13 registration under this Act.
1578		-	14 (B) The person's most recent audited consolidated
1579		-	15 annual financial statement, if the person's gross
1580		-	16 revenue was more than $2,000,000 in the previous
1581		-	17 fiscal year measured as of the anniversary date of
1582		-	18 issuance of its registration under this Act.
1583		-	19 (3) A description of any of the following:
1584		-	20 (A) Any material change in the financial condition
1585		-	21 of the registrant and any affiliate of the registrant.
1586		-	22 (B) Any material litigation related to the
1587		-	23 registrant's digital asset business activity and
1588		-	24 involving the registrant or an executive officer,
1589		-	25 responsible individual, or affiliate of the
1590		-	26 registrant.
1591		-
1592		-
1593		-
1594		-
1595		-
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1597		-
1598		-
1599		-	HB0742 Engrossed- 46 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 46 - LRB104 04637 BAB 14664 b
1600		-	HB0742 Engrossed - 46 - LRB104 04637 BAB 14664 b
1601		-	1 (C) Any federal, state, or foreign investigation
1602		-	2 involving the registrant or an executive officer,
1603		-	3 responsible individual, or affiliate of the
1604		-	4 registrant.
1605		-	5 (D)(i) Any data security breach or cybersecurity
1606		-	6 event involving the registrant.
1607		-	7 (ii) A description of a data security breach
1608		-	8 pursuant to this subparagraph does not constitute
1609		-	9 disclosure or notification of a security breach
1610		-	10 for purposes of any other law.
1611		-	11 (4) Information or records required by Section 20-25
1612		-	12 that the registrant has not reported to the Department.
1613		-	13 (5) The number of digital asset business activity
1614		-	14 transactions with or on behalf of residents for the period
1615		-	15 since the later of the date the registration was issued or
1616		-	16 the date the last renewal application was submitted.
1617		-	17 (6)(A) The amount of United States dollar equivalent
1618		-	18 of digital assets in the custody or control of the
1619		-	19 registrant at the end of the last month that ends not later
1620		-	20 than 30 days before the date of the renewal application.
1621		-	21 (B) The total number of residents for whom the
1622		-	22 registrant had custody or control of United States
1623		-	23 dollar equivalent of digital assets on that date.
1624		-	24 (7) Evidence that the registrant is in compliance with
1625		-	25 Section 5-10.
1626		-	26 (8) Evidence that the registrant is in compliance with
1627		-
1628		-
1629		-
1630		-
1631		-
1632		-	HB0742 Engrossed - 46 - LRB104 04637 BAB 14664 b
1633		-
1634		-
1635		-	HB0742 Engrossed- 47 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 47 - LRB104 04637 BAB 14664 b
1636		-	HB0742 Engrossed - 47 - LRB104 04637 BAB 14664 b
1637		-	1 Section 20-5.
1638		-	2 (9) A list of all locations where the registrant
1639		-	3 engages in digital asset business activity.
1640		-	4 (10) Any other information the Department requires by
1641		-	5 rule.
1642		-	6 (c) If a registrant does not timely comply with this
1643		-	7 Section, the Department may take enforcement actions provided
1644		-	8 under Section 20-50. Notice or hearing is not required for a
1645		-	9 suspension or revocation of a registration under this Act for
1646		-	10 failure to pay a renewal fee, file a renewal application, or
1647		-	11 otherwise comply with this Section.
1648		-	12 (d) Suspension or revocation of a registration under this
1649		-	13 Section does not invalidate a transfer or exchange of digital
1650		-	14 assets for or on behalf of a resident made during the
1651		-	15 suspension or revocation and does not insulate the registrant
1652		-	16 from liability under this Act.
1653		-	17 (e) For good cause, the Department, in its sole
1654		-	18 discretion, may extend a period under this Section.
1655		-	19 (f) A registrant that does not comply with this Section
1656		-	20 shall cease digital asset business activities with or on
1657		-	21 behalf of a resident. A registrant ceasing an activity or
1658		-	22 activities regulated by this Act and desiring to no longer be
1659		-	23 registered shall so inform the Department in writing and, at
1660		-	24 the same time, convey any registration issued and all other
1661		-	25 symbols or indicia of registration. The registrant shall
1662		-	26 include a plan for the withdrawal from regulated business,
1663		-
1664		-
1665		-
1666		-
1667		-
1668		-	HB0742 Engrossed - 47 - LRB104 04637 BAB 14664 b
1669		-
1670		-
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1672		-	HB0742 Engrossed - 48 - LRB104 04637 BAB 14664 b
1673		-	1 including a timetable for the disposition of the business, and
1674		-	2 comply with the surrender guidelines or requirements of the
1675		-	3 Department.
1676		-	4 Section 15-20. Nontransferable registration. A
1677		-	5 registration under this Act is not transferable or assignable.
1678		-	6 Article 20. Supervision
1679		-	7 Section 20-5. Surety bond; capital and liquidity
1680		-	8 requirements.
1681		-	9 (a)(1)(A) A registrant shall maintain a surety bond or
1682		-	10 trust account in United States dollars in a form and amount as
1683		-	11 determined by the Department for the protection of residents
1684		-	12 that engage in digital asset business activity with the
1685		-	13 registrant.
1686		-	14 (B) If a registrant maintains a trust account
1687		-	15 pursuant to this Section, that trust account shall be
1688		-	16 maintained with a qualified custodian.
1689		-	17 (2) Security deposited under this Section shall be for
1690		-	18 the benefit of a claim against the registrant on account
1691		-	19 of the registrant's digital asset business activity with
1692		-	20 or on behalf of a resident.
1693		-	21 (3) Security deposited under this Section shall cover
1694		-	22 claims for the period the Department specifies by rule and
1695		-	23 for an additional period the Department specifies after
1696		-
1697		-
1698		-
1699		-
1700		-
1701		-	HB0742 Engrossed - 48 - LRB104 04637 BAB 14664 b
1702		-
1703		-
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1705		-	HB0742 Engrossed - 49 - LRB104 04637 BAB 14664 b
1706		-	1 the registrant ceases to engage in digital asset business
1707		-	2 activity with or on behalf of a resident.
1708		-	3 (4) The Department may require the registrant to
1709		-	4 increase the amount of security deposited under this
1710		-	5 Section, and the registrant shall deposit the additional
1711		-	6 security not later than 15 days after the registrant
1712		-	7 receives notice in a record of the required increase.
1713		-	8 (5) The Department may permit a registrant to
1714		-	9 substitute or deposit an alternate form of security
1715		-	10 satisfactory to the Department if the registrant at all
1716		-	11 times complies with this Section.
1717		-	12 (b) In addition to the security required under subsection
1718		-	13 (a), a registrant shall maintain at all times capital and
1719		-	14 liquidity, each in an amount and form as the Department
1720		-	15 determines is sufficient to ensure the financial integrity of
1721		-	16 the registrant and its ongoing operations based on an
1722		-	17 assessment of the specific risks applicable to the registrant.
1723		-	18 In determining the minimum amount of capital and liquidity
1724		-	19 that shall be maintained by a registrant, the Department may
1725		-	20 consider factors, including, but not limited to, all of the
1726		-	21 following:
1727		-	22 (1) The composition of the registrant's total assets,
1728		-	23 including the position, size, quality, liquidity, risk
1729		-	24 exposure, and price volatility of each type of asset.
1730		-	25 (2) The composition of the registrant's total
1731		-	26 liabilities, including the size and repayment timing of
1732		-
1733		-
1734		-
1735		-
1736		-
1737		-	HB0742 Engrossed - 49 - LRB104 04637 BAB 14664 b
1738		-
1739		-
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1741		-	HB0742 Engrossed - 50 - LRB104 04637 BAB 14664 b
1742		-	1 each type of liability.
1743		-	2 (3) The actual and expected volume of the registrant's
1744		-	3 digital asset business activity.
1745		-	4 (4) The amount of leverage employed by the registrant.
1746		-	5 (5) The liquidity position of the registrant.
1747		-	6 (6) The financial protection that the registrant
1748		-	7 provides pursuant to subsection (a).
1749		-	8 (7) The types of entities to be serviced by the
1750		-	9 registrant.
1751		-	10 (8) The types of products or services to be offered by
1752		-	11 the registrant.
1753		-	12 (9) Arrangements adopted by the registrant for the
1754		-	13 protection of its customers in the event of the
1755		-	14 registrant's insolvency.
1756		-	15 (c) A registrant shall hold liquidity required to be
1757		-	16 maintained in accordance with this Section in the form of cash
1758		-	17 or high-quality liquid assets, as defined by the Department
1759		-	18 and in proportions determined by the Department.
1760		-	19 (d) The Department may require a registrant to increase
1761		-	20 the capital or liquidity required under this Section. A
1762		-	21 registrant shall submit evidence satisfactory to the
1763		-	22 Department that it has additional capital or liquidity
1764		-	23 required pursuant to this subsection not later than 15 days
1765		-	24 after the registrant receives notice in a record of the
1766		-	25 required increase.
1767		-
1768		-
1769		-
1770		-
1771		-
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1773		-
1774		-
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1776		-	HB0742 Engrossed - 51 - LRB104 04637 BAB 14664 b
1777		-	1 Section 20-10. Examination.
1778		-	2 (a)(1)(A) The Department may, at any time and from time to
1779		-	3 time, examine the business and any office, within or outside
1780		-	4 this State, of any covered person, or any agent of a covered
1781		-	5 person, in order to ascertain (i) the financial condition of
1782		-	6 the covered person, (ii) the safety and soundness of the
1783		-	7 conduct of its business, (iii) the policies of its management,
1784		-	8 (iv) whether the business is being conducted in a lawful
1785		-	9 manner, (v) whether all digital asset business activity is
1786		-	10 properly accounted for, and (vi) such other matters as the
1787		-	11 Department may determine, including, but not limited to, any
1788		-	12 activities of the covered person outside the State if in the
1789		-	13 Department's judgment such activities may affect the covered
1790		-	14 person's digital asset business activity.
1791		-	15 (B) The directors, officers, and employees of a
1792		-	16 covered person, or agent of a covered person, being
1793		-	17 examined by the Department shall exhibit to the
1794		-	18 Department, on request, any or all of the covered
1795		-	19 person's accounts, books, correspondence, memoranda,
1796		-	20 papers, and other records and shall otherwise
1797		-	21 facilitate the examination so far as it may be in their
1798		-	22 power to do so.
1799		-	23 (C) The covered person shall permit and assist the
1800		-	24 Department to examine an affiliate or service provider
1801		-	25 of the covered person when, in the Department's
1802		-	26 judgment, it is necessary or advisable to do so.
1803		-
1804		-
1805		-
1806		-
1807		-
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1809		-
1810		-
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1812		-	HB0742 Engrossed - 52 - LRB104 04637 BAB 14664 b
1813		-	1 (2) The Department may examine a covered person, its
1814		-	2 affiliate, or service provider pursuant to this paragraph
1815		-	3 without prior notice to the covered person, affiliate, or
1816		-	4 service provider.
1817		-	5 (b) A covered person shall pay the necessary costs of an
1818		-	6 examination under this Section.
1819		-	7 Section 20-15. Books and records.
1820		-	8 (a) A registrant shall maintain, for all digital asset
1821		-	9 business activity with or on behalf of a resident for 5 years
1822		-	10 after the date of the activity, a record of all of the
1823		-	11 following:
1824		-	12 (1) Any transaction of the registrant with or on
1825		-	13 behalf of the resident or for the registrant's account in
1826		-	14 this State, including all of the following:
1827		-	15 (A) The identity of the resident.
1828		-	16 (B) The form of the transaction.
1829		-	17 (C) The amount, date, and payment instructions
1830		-	18 given by the resident.
1831		-	19 (D) The account number, name, and physical address
1832		-	20 of:
1833		-	21 (i) the parties to the transaction that are
1834		-	22 customers or account holders of the registrant;
1835		-	23 and
1836		-	24 (ii) to the extent practicable, any other
1837		-	25 parties to the transaction.
1838		-
1839		-
1840		-
1841		-
1842		-
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1844		-
1845		-
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1847		-	HB0742 Engrossed - 53 - LRB104 04637 BAB 14664 b
1848		-	1 (2) The aggregate number of transactions and aggregate
1849		-	2 value of transactions by the registrant with, or on behalf
1850		-	3 of, the resident and for the registrant's account in this
1851		-	4 State expressed in United States dollar equivalent of
1852		-	5 digital assets for the previous 12 calendar months.
1853		-	6 (3) Any transaction in which the registrant exchanged
1854		-	7 one form of digital asset for fiat currency or another
1855		-	8 form of digital asset with or on behalf of the resident.
1856		-	9 (4) A general ledger maintained at least monthly that
1857		-	10 lists all assets, liabilities, capital, income, and
1858		-	11 expenses of the registrant.
1859		-	12 (5) Any report of condition or other reports to the
1860		-	13 Department, at such times and in such form, as the
1861		-	14 Department may request.
1862		-	15 (6) Bank statements and bank reconciliation records
1863		-	16 for the registrant and the name, account number, and
1864		-	17 United States Postal Service address of any bank or credit
1865		-	18 union the registrant uses in the conduct of its digital
1866		-	19 asset business activity with or on behalf of the resident.
1867		-	20 (7) A report of any dispute with a resident.
1868		-	21 (b) A registrant shall maintain records required by
1869		-	22 subsection (a) in a form that enables the Department to
1870		-	23 determine whether the registrant is in compliance with this
1871		-	24 Act, any court order, and the laws of this State.
1872		-	25 (c) If a registrant maintains records outside this State
1873		-	26 that pertain to transactions with or on behalf of a resident,
1874		-
1875		-
1876		-
1877		-
1878		-
1879		-	HB0742 Engrossed - 53 - LRB104 04637 BAB 14664 b
1880		-
1881		-
1882		-	HB0742 Engrossed- 54 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 54 - LRB104 04637 BAB 14664 b
1883		-	HB0742 Engrossed - 54 - LRB104 04637 BAB 14664 b
1884		-	1 the registrant shall make the records available to the
1885		-	2 Department not later than 3 days after request, or, on a
1886		-	3 determination of good cause by the Department, in its sole
1887		-	4 discretion, at a later time.
1888		-	5 (d) All records maintained by a registrant, any affiliate,
1889		-	6 or any service provider are subject to inspection by the
1890		-	7 Department.
1891		-	8 Section 20-20. Regulatory cooperation. The Department may
1892		-	9 cooperate, coordinate, jointly examine, consult, and share
1893		-	10 records and other information with the appropriate regulatory
1894		-	11 agency of another state, a self-regulatory organization,
1895		-	12 federal or state regulator of banking or non-depository
1896		-	13 institutions, or a regulator of a jurisdiction outside the
1897		-	14 United States, concerning the affairs and conduct of a covered
1898		-	15 person, affiliate, or service provider in this State.
1899		-	16 Section 20-25. Material business changes.
1900		-	17 (a) A registrant shall file with the Department a report
1901		-	18 of the following, as may be applicable:
1902		-	19 (1) A material change in information in the
1903		-	20 application for a registration under this Act or the most
1904		-	21 recent renewal report of the registrant under this Act.
1905		-	22 (2) A material change in the registrant's business for
1906		-	23 the conduct of its digital asset business activity with or
1907		-	24 on behalf of a resident.
1908		-
1909		-
1910		-
1911		-
1912		-
1913		-	HB0742 Engrossed - 54 - LRB104 04637 BAB 14664 b
1914		-
1915		-
1916		-	HB0742 Engrossed- 55 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 55 - LRB104 04637 BAB 14664 b
1917		-	HB0742 Engrossed - 55 - LRB104 04637 BAB 14664 b
1918		-	1 (3) A change of an affiliate, executive officer,
1919		-	2 responsible individual, or person in control of the
1920		-	3 registrant.
1921		-	4 (b) A report required by this Section shall be filed not
1922		-	5 later than 15 days after the change described in subsection
1923		-	6 (a).
1924		-	7 Section 20-30. Change in control.
1925		-	8 (a) As used in this Section, "proposed person to be in
1926		-	9 control" means the person that would control a registrant
1927		-	10 after a proposed transaction that would result in a change in
1928		-	11 control of the registrant.
1929		-	12 (b) The following rules apply in determining whether a
1930		-	13 person has control over a registrant:
1931		-	14 (1) There is a rebuttable presumption of control if a
1932		-	15 person directly or indirectly owns, controls, holds with
1933		-	16 the power to vote, or holds proxies representing 10% or
1934		-	17 more of the then outstanding voting securities issued by
1935		-	18 the registrant.
1936		-	19 (2) A person has control over a registrant if the
1937		-	20 person's voting power in the registrant constitutes or
1938		-	21 will constitute at least 25% of the total voting power of
1939		-	22 the registrant.
1940		-	23 (3) There is a rebuttable presumption of control if
1941		-	24 the person's voting power in another person constitutes or
1942		-	25 will constitute at least 10% of the total voting power of
1943		-
1944		-
1945		-
1946		-
1947		-
1948		-	HB0742 Engrossed - 55 - LRB104 04637 BAB 14664 b
1949		-
1950		-
1951		-	HB0742 Engrossed- 56 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 56 - LRB104 04637 BAB 14664 b
1952		-	HB0742 Engrossed - 56 - LRB104 04637 BAB 14664 b
1953		-	1 the other person and the other person's voting power in
1954		-	2 the registrant constitutes at least 10% of the total
1955		-	3 voting power of the registrant.
1956		-	4 (4) There is no presumption of control solely because
1957		-	5 an individual is an executive officer of the registrant.
1958		-	6 (c) Before a proposed change in control of a registrant,
1959		-	7 the proposed person to be in control shall submit to the
1960		-	8 Department in a record all of the following:
1961		-	9 (1) An application in a form and medium prescribed by
1962		-	10 the Department.
1963		-	11 (2) The information and records that Section 15-10
1964		-	12 would require if the proposed person to be in control
1965		-	13 already had control of the registrant.
1966		-	14 (d) The Department shall not approve an application unless
1967		-	15 the Secretary finds all of the following:
1968		-	16 (1) The proposed person to be in control and all
1969		-	17 executive officers of the proposed person to be in
1970		-	18 control, if any, are of good character and sound financial
1971		-	19 standing.
1972		-	20 (2) The proposed person to be in control is competent
1973		-	21 to engage in digital asset business activity.
1974		-	22 (3) It is reasonable to believe that, if the person
1975		-	23 acquires control of the registrant, the proposed person to
1976		-	24 be in control and the registrant will comply with all
1977		-	25 applicable provisions of this Act and any rules or order
1978		-	26 issued under this Act.
1979		-
1980		-
1981		-
1982		-
1983		-
1984		-	HB0742 Engrossed - 56 - LRB104 04637 BAB 14664 b
1985		-
1986		-
1987		-	HB0742 Engrossed- 57 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 57 - LRB104 04637 BAB 14664 b
1988		-	HB0742 Engrossed - 57 - LRB104 04637 BAB 14664 b
1989		-	1 (4) Any plans by the proposed person to be in control
1990		-	2 to change the business, corporate structure, or management
1991		-	3 of the registrant are not detrimental to the safety and
1992		-	4 soundness of the registrant.
1993		-	5 (e) The Department, in accordance with Section 15-10,
1994		-	6 shall approve, approve with conditions, or deny an application
1995		-	7 for a change in control of a registrant. The Department, in a
1996		-	8 record, shall send notice of its decision to the registrant
1997		-	9 and the person that would be in control if the Department had
1998		-	10 approved the change in control. If the Department denies the
1999		-	11 application, the registrant shall abandon the proposed change
2000		-	12 in control or cease digital asset business activity with or on
2001		-	13 behalf of residents.
2002		-	14 (f) If the Department applies a condition to approval of a
2003		-	15 change in control of a registrant, and the Department does not
2004		-	16 receive notice of the applicant's acceptance of the condition
2005		-	17 specified by the Department not later than 31 days after the
2006		-	18 Department sends notice of the condition, the application is
2007		-	19 deemed denied. If the application is deemed denied, the
2008		-	20 registrant shall abandon the proposed change in control or
2009		-	21 cease digital asset business activity with or on behalf of
2010		-	22 residents.
2011		-	23 (g) The Department may revoke or modify a determination
2012		-	24 under subsection (d), after notice and opportunity to be
2013		-	25 heard, if, in its judgment, revocation or modification is
2014		-	26 consistent with this Act.
2015		-
2016		-
2017		-
2018		-
2019		-
2020		-	HB0742 Engrossed - 57 - LRB104 04637 BAB 14664 b
2021		-
2022		-
2023		-	HB0742 Engrossed- 58 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 58 - LRB104 04637 BAB 14664 b
2024		-	HB0742 Engrossed - 58 - LRB104 04637 BAB 14664 b
2025		-	1 (h) If a change in control of a registrant requires
2026		-	2 approval of another regulatory agency, and the action of the
2027		-	3 other agency conflicts with that of the Department, the
2028		-	4 Department shall confer with the other agency. If the proposed
2029		-	5 change in control cannot be completed because the conflict
2030		-	6 cannot be resolved, the registrant shall abandon the change in
2031		-	7 control or cease digital asset business activity with or on
2032		-	8 behalf of residents.
2033		-	9 Section 20-35. Mergers.
2034		-	10 (a) Before a proposed merger or consolidation of a
2035		-	11 registrant with another person, the registrant shall submit
2036		-	12 all of the following, as applicable, to the Department:
2037		-	13 (1) An application in a form and medium prescribed by
2038		-	14 the Department.
2039		-	15 (2) The plan of merger or consolidation in accordance
2040		-	16 with subsection (e).
2041		-	17 (3) In the case of a registrant, the information
2042		-	18 required by Section 15-10 concerning the person that would
2043		-	19 be the surviving entity in the proposed merger or
2044		-	20 consolidation.
2045		-	21 (b) If a proposed merger or consolidation would change the
2046		-	22 control of a registrant, the registrant shall comply with
2047		-	23 Section 20-30 and this Section.
2048		-	24 (c) The Department, in accordance with Section 15-10,
2049		-	25 shall approve, conditionally approve, or deny an application
2050		-
2051		-
2052		-
2053		-
2054		-
2055		-	HB0742 Engrossed - 58 - LRB104 04637 BAB 14664 b
2056		-
2057		-
2058		-	HB0742 Engrossed- 59 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 59 - LRB104 04637 BAB 14664 b
2059		-	HB0742 Engrossed - 59 - LRB104 04637 BAB 14664 b
2060		-	1 for approval of a merger or consolidation of a registrant. The
2061		-	2 Department, in a record, shall send notice of its decision to
2062		-	3 the registrant and the person that would be the surviving
2063		-	4 entity. If the Department denies the application, the
2064		-	5 registrant shall abandon the merger or consolidation or cease
2065		-	6 digital asset business activity with or on behalf of
2066		-	7 residents.
2067		-	8 (d) The Department may revoke or modify a determination
2068		-	9 under paragraph (c), after notice and opportunity to be heard,
2069		-	10 if, in its judgment, revocation or modification is consistent
2070		-	11 with this Act.
2071		-	12 (e) A plan of merger or consolidation of a registrant with
2072		-	13 another person shall do all of the following:
2073		-	14 (1) Describe the effect of the proposed transaction on
2074		-	15 the registrant's conduct of digital asset business
2075		-	16 activity with or on behalf of residents.
2076		-	17 (2) Identify each person to be merged or consolidated
2077		-	18 and the person that would be the surviving entity.
2078		-	19 (3) Describe the terms and conditions of the merger or
2079		-	20 consolidation and the mode of carrying it into effect.
2080		-	21 (f) If a merger or consolidation of a registrant and
2081		-	22 another person requires approval of another regulatory agency,
2082		-	23 and the action of the other agency conflicts with that of the
2083		-	24 Department, the Department shall confer with the other agency.
2084		-	25 If the proposed merger or consolidation cannot be completed
2085		-	26 because the conflict cannot be resolved, the registrant shall
2086		-
2087		-
2088		-
2089		-
2090		-
2091		-	HB0742 Engrossed - 59 - LRB104 04637 BAB 14664 b
2092		-
2093		-
2094		-	HB0742 Engrossed- 60 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 60 - LRB104 04637 BAB 14664 b
2095		-	HB0742 Engrossed - 60 - LRB104 04637 BAB 14664 b
2096		-	1 abandon the merger or consolidation or cease digital asset
2097		-	2 business activity with or on behalf of residents.
2098		-	3 (g) The Department may condition approval of an
2099		-	4 application under subsection (a). If the Department does not
2100		-	5 receive notice from the parties that the parties accept the
2101		-	6 Department's condition not later than 31 days after the
2102		-	7 Department sends notice in a record of the condition, the
2103		-	8 application is deemed denied. If the application is deemed
2104		-	9 denied, the registrant shall abandon the merger or
2105		-	10 consolidation or cease digital asset business activity with,
2106		-	11 or on behalf of, residents.
2107		-	12 (h) If a registrant acquires substantially all of the
2108		-	13 assets of a person, whether or not the person's registration
2109		-	14 was approved by the Department, the transaction is subject to
2110		-	15 this Section.
2111		-	16 Section 20-40. Investigation of complaints. The Secretary
2112		-	17 shall be authorized at all times to maintain staff and
2113		-	18 facilities adequate to receive, record, and investigate
2114		-	19 complaints and inquiries made by any person concerning this
2115		-	20 Act and any covered persons, affiliates, and service providers
2116		-	21 under this Act. Each such person shall open their books,
2117		-	22 records, documents, and offices wherever situated to the
2118		-	23 Secretary or his or her appointees as needed to facilitate
2119		-	24 such investigations.
2120		-
2121		-
2122		-
2123		-
2124		-
2125		-	HB0742 Engrossed - 60 - LRB104 04637 BAB 14664 b
2126		-
2127		-
2128		-	HB0742 Engrossed- 61 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 61 - LRB104 04637 BAB 14664 b
2129		-	HB0742 Engrossed - 61 - LRB104 04637 BAB 14664 b
2130		-	1 Section 20-45. Additional investigation and examination
2131		-	2 authority. In addition to any authority allowed under this Act
2132		-	3 or other applicable law, the Secretary shall have the
2133		-	4 authority to conduct investigations and examinations as
2134		-	5 follows:
2135		-	6 (1) For purposes of initial registration, renewal,
2136		-	7 suspension, conditioning, revocation or termination, or
2137		-	8 general or specific inquiry or investigation to determine
2138		-	9 compliance with this Act, the Secretary shall have the
2139		-	10 authority to access, receive, and use any books, accounts,
2140		-	11 records, files, documents, information, or evidence,
2141		-	12 including, but not limited to, the following:
2142		-	13 (A) criminal, civil, and administrative history
2143		-	14 information, including nonconviction data as specified
2144		-	15 in the Criminal Code of 2012;
2145		-	16 (B) personal history and experience information,
2146		-	17 including independent credit reports obtained from a
2147		-	18 consumer reporting agency described in Section 603(p)
2148		-	19 of the federal Fair Credit Reporting Act; and
2149		-	20 (C) any other documents, information, or evidence
2150		-	21 the Secretary deems relevant to the inquiry or
2151		-	22 investigation, regardless of the location, possession,
2152		-	23 control, or custody of the documents, information, or
2153		-	24 evidence.
2154		-	25 (2) For the purposes of investigating violations or
2155		-	26 complaints arising under this Act or for the purposes of
2156		-
2157		-
2158		-
2159		-
2160		-
2161		-	HB0742 Engrossed - 61 - LRB104 04637 BAB 14664 b
2162		-
2163		-
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2165		-	HB0742 Engrossed - 62 - LRB104 04637 BAB 14664 b
2166		-	1 examination, the Secretary may review, investigate, or
2167		-	2 examine any covered person, affiliate, service provider,
2168		-	3 individual, or person subject to this Act as often as
2169		-	4 necessary in order to carry out the purposes of this Act.
2170		-	5 The Secretary may direct, subpoena, or order the
2171		-	6 attendance of and examine under oath all persons whose
2172		-	7 testimony may be required about the transactions or the
2173		-	8 business or subject matter of any such examination or
2174		-	9 investigation, and may direct, subpoena, or order the
2175		-	10 person to produce books, accounts, records, files, and any
2176		-	11 other documents the Secretary deems relevant to the
2177		-	12 inquiry.
2178		-	13 (3) Each covered person, affiliate, service provider,
2179		-	14 individual, or person subject to this Act shall make
2180		-	15 available to the Secretary upon request the books and
2181		-	16 records relating to the operations of the registrant,
2182		-	17 affiliate, individual, or person subject to this Act. The
2183		-	18 Secretary shall have access to those books and records and
2184		-	19 interview the officers, principals, employees, independent
2185		-	20 contractors, agents, and customers of the covered person,
2186		-	21 affiliate, service provider, individual, or person subject
2187		-	22 to this Act concerning their business.
2188		-	23 (4) Each covered person, affiliate, service provider,
2189		-	24 individual, or person subject to this Act shall make or
2190		-	25 compile reports or prepare other information as directed
2191		-	26 by the Secretary in order to carry out the purposes of this
2192		-
2193		-
2194		-
2195		-
2196		-
2197		-	HB0742 Engrossed - 62 - LRB104 04637 BAB 14664 b
2198		-
2199		-
2200		-	HB0742 Engrossed- 63 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 63 - LRB104 04637 BAB 14664 b
2201		-	HB0742 Engrossed - 63 - LRB104 04637 BAB 14664 b
2202		-	1 Section, including, but not limited to:
2203		-	2 (A) accounting compilations;
2204		-	3 (B) information lists and data concerning
2205		-	4 transactions in a format prescribed by the Secretary;
2206		-	5 or
2207		-	6 (C) other information deemed necessary to carry
2208		-	7 out the purposes of this Section.
2209		-	8 (5) In making any examination or investigation
2210		-	9 authorized by this Act, the Secretary may control access
2211		-	10 to any documents and records of the covered person or
2212		-	11 person under examination or investigation. The Secretary
2213		-	12 may take possession of the documents and records or place
2214		-	13 a person in exclusive charge of the documents and records
2215		-	14 in the place where they are usually kept. During the
2216		-	15 period of control, no person shall remove or attempt to
2217		-	16 remove any of the documents or records, except pursuant to
2218		-	17 a court order or with the consent of the Secretary. Unless
2219		-	18 the Secretary has reasonable grounds to believe the
2220		-	19 documents or records of the covered person or person under
2221		-	20 examination or investigation have been or are at risk of
2222		-	21 being altered or destroyed for purposes of concealing a
2223		-	22 violation of this Act, the covered person or owner of the
2224		-	23 documents and records shall have access to the documents
2225		-	24 or records as necessary to conduct its ordinary business
2226		-	25 affairs.
2227		-	26 (6) In order to carry out the purposes of this
2228		-
2229		-
2230		-
2231		-
2232		-
2233		-	HB0742 Engrossed - 63 - LRB104 04637 BAB 14664 b
2234		-
2235		-
2236		-	HB0742 Engrossed- 64 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 64 - LRB104 04637 BAB 14664 b
2237		-	HB0742 Engrossed - 64 - LRB104 04637 BAB 14664 b
2238		-	1 Section, the Secretary may:
2239		-	2 (A) retain attorneys, accountants, or other
2240		-	3 professionals and specialists as examiners, auditors,
2241		-	4 or investigators to conduct or assist in the conduct
2242		-	5 of examinations or investigations;
2243		-	6 (B) enter into agreements or relationships with
2244		-	7 other government officials, regulatory associations,
2245		-	8 or self-regulatory organizations in order to improve
2246		-	9 efficiencies and reduce regulatory burden by sharing
2247		-	10 resources, standardized or uniform methods or
2248		-	11 procedures, and documents, records, information, or
2249		-	12 evidence obtained under this Section;
2250		-	13 (C) use, hire, contract, or employ public or
2251		-	14 privately available analytical systems, methods, or
2252		-	15 software to examine or investigate the covered person,
2253		-	16 affiliate, service provider, individual, or person
2254		-	17 subject to this Act;
2255		-	18 (D) accept and rely on examination or
2256		-	19 investigation reports made by other government
2257		-	20 officials, within or outside this State; or
2258		-	21 (E) accept audit reports made by an independent
2259		-	22 certified public accountant for the covered person,
2260		-	23 affiliate, service provider, individual, or person
2261		-	24 subject to this Act in the course of that part of the
2262		-	25 examination covering the same general subject matter
2263		-	26 as the audit and may incorporate the audit report in
2264		-
2265		-
2266		-
2267		-
2268		-
2269		-	HB0742 Engrossed - 64 - LRB104 04637 BAB 14664 b
2270		-
2271		-
2272		-	HB0742 Engrossed- 65 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 65 - LRB104 04637 BAB 14664 b
2273		-	HB0742 Engrossed - 65 - LRB104 04637 BAB 14664 b
2274		-	1 the report of the examination, report of
2275		-	2 investigation, or other writing of the Secretary.
2276		-	3 (7) The authority of this Section shall remain in
2277		-	4 effect, whether such a covered person, affiliate, service
2278		-	5 provider, individual, or person subject to this Act acts
2279		-	6 or claims to act under any licensing or registration law
2280		-	7 of this State or claims to act without the authority.
2281		-	8 (8) No covered person, affiliate, service provider,
2282		-	9 individual, or person subject to investigation or
2283		-	10 examination under this Section may knowingly withhold,
2284		-	11 abstract, remove, mutilate, destroy, or secrete any books,
2285		-	12 records, computer records, or other information.
2286		-	13 Section 20-50. Enforcement actions.
2287		-	14 (a) As used in this Article, "enforcement action" means an
2288		-	15 action including, but not limited to, all of the following:
2289		-	16 (1) Suspending or revoking a registration under this
2290		-	17 Act.
2291		-	18 (2) Ordering a person to cease and desist from doing
2292		-	19 digital asset business activity with or on behalf of a
2293		-	20 resident.
2294		-	21 (3) Requesting the court to appoint a receiver for the
2295		-	22 assets of a person doing digital asset business activity
2296		-	23 with or on behalf of a resident.
2297		-	24 (4) Requesting the court to issue temporary,
2298		-	25 preliminary, or permanent injunctive relief against a
2299		-
2300		-
2301		-
2302		-
2303		-
2304		-	HB0742 Engrossed - 65 - LRB104 04637 BAB 14664 b
2305		-
2306		-
2307		-	HB0742 Engrossed- 66 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 66 - LRB104 04637 BAB 14664 b
2308		-	HB0742 Engrossed - 66 - LRB104 04637 BAB 14664 b
2309		-	1 person doing digital asset business activity with or on
2310		-	2 behalf of a resident.
2311		-	3 (5) Assessing a civil penalty under Section 20-70.
2312		-	4 (6) Recovering on the security under Section 20-5 and
2313		-	5 initiating a plan to distribute the proceeds for the
2314		-	6 benefit of a resident injured by a violation of this Act,
2315		-	7 or law of this State other than this Act that applies to
2316		-	8 digital asset business activity with or on behalf of a
2317		-	9 resident.
2318		-	10 (7) Imposing necessary or appropriate conditions on
2319		-	11 the conduct of digital asset business activity with or on
2320		-	12 behalf of a resident.
2321		-	13 (8) Seeking restitution on behalf of a resident if the
2322		-	14 Department shows economic injury due to a violation of
2323		-	15 this Act.
2324		-	16 (b) The Department may enter into a consent order with a
2325		-	17 person regarding an enforcement action.
2326		-	18 (c) This Section does not provide a private right of
2327		-	19 action to a resident, provided this Section does not preclude
2328		-	20 an action by a resident to enforce rights under Article 5 or
2329		-	21 subsection (a) of Section 20-5.
2330		-	22 Section 20-55. Violations.
2331		-	23 (a) The Department may take an enforcement action against
2332		-	24 a covered person or any person otherwise subject to this Act in
2333		-	25 any of the following instances:
2334		-
2335		-
2336		-
2337		-
2338		-
2339		-	HB0742 Engrossed - 66 - LRB104 04637 BAB 14664 b
2340		-
2341		-
2342		-	HB0742 Engrossed- 67 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 67 - LRB104 04637 BAB 14664 b
2343		-	HB0742 Engrossed - 67 - LRB104 04637 BAB 14664 b
2344		-	1 (1) The covered person or person violates this Act, a
2345		-	2 rule adopted or order issued under this Act, or a State or
2346		-	3 federal law or regulation that applies to digital asset
2347		-	4 business activity of the violator with or on behalf of a
2348		-	5 resident.
2349		-	6 (2) The covered person or person does not cooperate
2350		-	7 with an examination or investigation by the Department,
2351		-	8 fails to pay a fee, or fails to submit a report or
2352		-	9 documentation.
2353		-	10 (3) The covered person or person, in the conduct of
2354		-	11 its digital asset business activity with or on behalf of a
2355		-	12 resident, has engaged, is engaging, or is about to engage
2356		-	13 in any of the following:
2357		-	14 (A) An unsafe, unsound, or unlawful act or
2358		-	15 practice.
2359		-	16 (B) An unfair, deceptive, or abusive act or
2360		-	17 practice.
2361		-	18 (C) Fraud, misrepresentation, deceit, or
2362		-	19 negligence.
2363		-	20 (D) Misappropriation of fiat currency, a digital
2364		-	21 asset, or other value.
2365		-	22 (4) An agency of the United States or another state
2366		-	23 takes an action against the covered person or person that
2367		-	24 would constitute an enforcement action if the Department
2368		-	25 had taken the action.
2369		-	26 (5) The covered person or person is convicted of a
2370		-
2371		-
2372		-
2373		-
2374		-
2375		-	HB0742 Engrossed - 67 - LRB104 04637 BAB 14664 b
2376		-
2377		-
2378		-	HB0742 Engrossed- 68 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 68 - LRB104 04637 BAB 14664 b
2379		-	HB0742 Engrossed - 68 - LRB104 04637 BAB 14664 b
2380		-	1 crime related to its digital asset business activity with
2381		-	2 or on behalf of a resident or involving fraud or felonious
2382		-	3 activity that, as determined by the Department, makes the
2383		-	4 covered person or person unsuitable to engage in digital
2384		-	5 asset business activity.
2385		-	6 (6) Any of the following occurs:
2386		-	7 (A) The covered person or person becomes
2387		-	8 insolvent.
2388		-	9 (B) The covered person or person makes a general
2389		-	10 assignment for the benefit of its creditors.
2390		-	11 (C) The covered person or person becomes the
2391		-	12 debtor, alleged debtor, respondent, or person in a
2392		-	13 similar capacity in a case or other proceeding under
2393		-	14 any bankruptcy, reorganization, arrangement,
2394		-	15 readjustment, insolvency, receivership, dissolution,
2395		-	16 liquidation, or similar law, and does not obtain from
2396		-	17 the court, within a reasonable time, confirmation of a
2397		-	18 plan or dismissal of the case or proceeding.
2398		-	19 (D) The covered person or person applies for, or
2399		-	20 permits the appointment of, a receiver, trustee, or
2400		-	21 other agent of a court for itself or for a substantial
2401		-	22 part of its assets.
2402		-	23 (7) The covered person or person makes a
2403		-	24 misrepresentation to the Department.
2404		-	25 (b) If the Secretary finds, as the result of examination,
2405		-	26 investigation, or review of reports submitted by a registrant,
2406		-
2407		-
2408		-
2409		-
2410		-
2411		-	HB0742 Engrossed - 68 - LRB104 04637 BAB 14664 b
2412		-
2413		-
2414		-	HB0742 Engrossed- 69 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 69 - LRB104 04637 BAB 14664 b
2415		-	HB0742 Engrossed - 69 - LRB104 04637 BAB 14664 b
2416		-	1 that the business and affairs of a registrant are not being
2417		-	2 conducted in accordance with this Act, the Secretary may
2418		-	3 notify the registrant of the correction necessary. If a
2419		-	4 registrant fails to correct such violations, the Secretary may
2420		-	5 issue an order requiring immediate correction and compliance
2421		-	6 with this Act and may specify a reasonable date for
2422		-	7 performance.
2423		-	8 Section 20-60. Hearings.
2424		-	9 (a) Except as provided in subsection (b), the Department
2425		-	10 may take an enforcement action only after notice and
2426		-	11 opportunity for a hearing as appropriate in the circumstances.
2427		-	12 All hearings provided for in this Act shall be conducted in
2428		-	13 accordance with Title 38, Part 100 of the Illinois
2429		-	14 Administrative Code, and the Secretary shall have all the
2430		-	15 powers granted therein.
2431		-	16 (b)(1)(A) The Department may take an enforcement action,
2432		-	17 other than the imposition of a civil penalty under Section
2433		-	18 20-70, without notice if the circumstances require action
2434		-	19 before notice can be given.
2435		-	20 (B) A person subject to an enforcement action
2436		-	21 pursuant to this subsection shall have the right to an
2437		-	22 expedited post-action hearing by the Department unless
2438		-	23 the person has waived the hearing.
2439		-	24 (2)(A) The Department may take an enforcement action,
2440		-	25 other than the imposition of a civil penalty under Section
2441		-
2442		-
2443		-
2444		-
2445		-
2446		-	HB0742 Engrossed - 69 - LRB104 04637 BAB 14664 b
2447		-
2448		-
2449		-	HB0742 Engrossed- 70 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 70 - LRB104 04637 BAB 14664 b
2450		-	HB0742 Engrossed - 70 - LRB104 04637 BAB 14664 b
2451		-	1 20-70, after notice and without a prior hearing if the
2452		-	2 circumstances require action before a hearing can be held.
2453		-	3 (B) A person subject to an enforcement action
2454		-	4 pursuant to this subsection shall have the right to an
2455		-	5 expedited post-action hearing by the Department unless
2456		-	6 the person has waived the hearing.
2457		-	7 (3) The Department may take an enforcement action
2458		-	8 after notice and without a hearing if the person subject
2459		-	9 to the enforcement action does not timely request a
2460		-	10 hearing.
2461		-	11 Section 20-65. Hearing rules.
2462		-	12 (a) The Department may, in accordance with the Illinois
2463		-	13 Administrative Procedure Act, adopt rules to provide for
2464		-	14 review within the Department of the Secretary's decisions
2465		-	15 affecting the rights of persons or entities under this Act.
2466		-	16 The review shall provide for, at a minimum:
2467		-	17 (1) appointment of a hearing officer;
2468		-	18 (2) appropriate procedural rules, specific deadlines
2469		-	19 for filings, and standards of evidence and of proof; and
2470		-	20 (3) provision for apportioning costs among parties to
2471		-	21 the appeal.
2472		-	22 (b) All final administrative decisions of the Department
2473		-	23 under this Act, all amendments and modifications of final
2474		-	24 administrative decisions, and any rules adopted by the
2475		-	25 Department pursuant to this Act shall be subject to judicial
2476		-
2477		-
2478		-
2479		-
2480		-
2481		-	HB0742 Engrossed - 70 - LRB104 04637 BAB 14664 b
2482		-
2483		-
2484		-	HB0742 Engrossed- 71 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 71 - LRB104 04637 BAB 14664 b
2485		-	HB0742 Engrossed - 71 - LRB104 04637 BAB 14664 b
2486		-	1 review pursuant to the provisions of the Administrative Review
2487		-	2 Law.
2488		-	3 Section 20-70. Civil penalties.
2489		-	4 (a) If a person other than a registrant has engaged, is
2490		-	5 engaging, or is about to engage in digital asset business
2491		-	6 activity with or on behalf of a resident in violation of this
2492		-	7 Act, the Department may assess a civil penalty against the
2493		-	8 person in an amount not to exceed $100,000 for each day the
2494		-	9 person is in violation of this Act.
2495		-	10 (b) If a person violates a provision of this Act, the
2496		-	11 Department may assess a civil penalty in an amount not to
2497		-	12 exceed $25,000 for each day of violation or for each act or
2498		-	13 omission in violation, except that a fine may be imposed not to
2499		-	14 exceed $75,000 for each day of violation or for each act or
2500		-	15 omission in violation related to fraud, misrepresentation,
2501		-	16 deceit, or negligence.
2502		-	17 (c) A civil penalty under this Section continues to accrue
2503		-	18 until the date the violation ceases.
2504		-	19 (d) A civil penalty under this Section is cumulative to
2505		-	20 any civil penalties enforceable by the Department under any
2506		-	21 other law.
2507		-	22 Section 20-75. Subpoena power.
2508		-	23 (a) The Secretary shall have the power to issue and to
2509		-	24 serve subpoenas and subpoenas duces tecum to compel the
2510		-
2511		-
2512		-
2513		-
2514		-
2515		-	HB0742 Engrossed - 71 - LRB104 04637 BAB 14664 b
2516		-
2517		-
2518		-	HB0742 Engrossed- 72 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 72 - LRB104 04637 BAB 14664 b
2519		-	HB0742 Engrossed - 72 - LRB104 04637 BAB 14664 b
2520		-	1 attendance of witnesses and the production of all books,
2521		-	2 accounts, records, and other documents and materials relevant
2522		-	3 to an examination or investigation. The Secretary, or his or
2523		-	4 her duly authorized representative, shall have power to
2524		-	5 administer oaths and affirmations to any person.
2525		-	6 (b) In the event of noncompliance with a subpoena or
2526		-	7 subpoena duces tecum issued or caused to be issued by the
2527		-	8 Secretary, the Secretary may, through the Attorney General or
2528		-	9 the State's Attorney of the county in which the person
2529		-	10 subpoenaed resides or has its principal place of business,
2530		-	11 petition the circuit court of the county for an order
2531		-	12 requiring the subpoenaed person to appear and testify and to
2532		-	13 produce such books, accounts, records, and other documents as
2533		-	14 are specified in the subpoena duces tecum. The court may grant
2534		-	15 injunctive relief restraining the person from advertising,
2535		-	16 promoting, soliciting, entering into, offering to enter into,
2536		-	17 continuing, or completing any digital asset business activity.
2537		-	18 The court may grant other relief, including, but not limited
2538		-	19 to, the restraint, by injunction or appointment of a receiver,
2539		-	20 of any transfer, pledge, assignment, or other disposition of
2540		-	21 the person's assets or any concealment, alteration,
2541		-	22 destruction, or other disposition of books, accounts, records,
2542		-	23 or other documents and materials as the court deems
2543		-	24 appropriate, until the person has fully complied with the
2544		-	25 subpoena or subpoena duces tecum and the Secretary has
2545		-	26 completed an investigation or examination.
2546		-
2547		-
2548		-
2549		-
2550		-
2551		-	HB0742 Engrossed - 72 - LRB104 04637 BAB 14664 b
2552		-
2553		-
2554		-	HB0742 Engrossed- 73 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 73 - LRB104 04637 BAB 14664 b
2555		-	HB0742 Engrossed - 73 - LRB104 04637 BAB 14664 b
2556		-	1 (c) If it appears to the Secretary that the compliance
2557		-	2 with a subpoena or subpoena duces tecum issued or caused to be
2558		-	3 issued by the Secretary pursuant to this Section is essential
2559		-	4 to an investigation or examination, the Secretary, in addition
2560		-	5 to the other remedies provided for in this Act, may, through
2561		-	6 the Attorney General or the State's Attorney of the county in
2562		-	7 which the subpoenaed person resides or has its principal place
2563		-	8 of business, apply for relief to the circuit court of the
2564		-	9 county. The court shall thereupon direct the issuance of an
2565		-	10 order against the subpoenaed person requiring sufficient bond
2566		-	11 conditioned on compliance with the subpoena or subpoena duces
2567		-	12 tecum. The court shall cause to be endorsed on the order a
2568		-	13 suitable amount of bond or payment pursuant to which the
2569		-	14 person named in the order shall be freed, having a due regard
2570		-	15 to the nature of the case.
2571		-	16 (d) In addition, the Secretary may, through the Attorney
2572		-	17 General or the State's Attorney of the applicable county, seek
2573		-	18 a writ of attachment or an equivalent order from the circuit
2574		-	19 court having jurisdiction over the person who has refused to
2575		-	20 obey a subpoena, who has refused to give testimony, or who has
2576		-	21 refused to produce the matters described in the subpoena duces
2577		-	22 tecum.
2578		-	23 Section 20-80. Civil actions.
2579		-	24 (a) The Department may bring a civil action in accordance
2580		-	25 with the following:
2581		-
2582		-
2583		-
2584		-
2585		-
2586		-	HB0742 Engrossed - 73 - LRB104 04637 BAB 14664 b
2587		-
2588		-
2589		-	HB0742 Engrossed- 74 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 74 - LRB104 04637 BAB 14664 b
2590		-	HB0742 Engrossed - 74 - LRB104 04637 BAB 14664 b
2591		-	1 (1) If a person violates any provision of this Act, a
2592		-	2 rule or final order, or condition imposed in writing by
2593		-	3 the Department, the Department through the Attorney
2594		-	4 General or the State's Attorney of the county in which any
2595		-	5 such violation occurs may bring an action in the circuit
2596		-	6 court to enjoin the acts or practices or to enforce
2597		-	7 compliance with this Act or any rule or order adopted
2598		-	8 pursuant to this Act. Upon a proper showing, a permanent
2599		-	9 or preliminary injunction, restraining order, or writ of
2600		-	10 mandate shall be granted and a receiver, monitor,
2601		-	11 conservator, or other designated fiduciary or officer of
2602		-	12 the court may be appointed for the defendant or the
2603		-	13 defendant's assets, or any other ancillary relief may be
2604		-	14 granted as appropriate. A receiver, monitor, conservator,
2605		-	15 or other designated fiduciary or officer of the court
2606		-	16 appointed by the circuit court pursuant to this Section
2607		-	17 may, with the approval of the court, exercise any or all of
2608		-	18 the powers of the defendant's officers, directors,
2609		-	19 partners, trustees, or persons who exercise similar powers
2610		-	20 and perform similar duties, including the filing of a
2611		-	21 petition for bankruptcy. No action at law or in equity may
2612		-	22 be maintained by any party against the Secretary, a
2613		-	23 receiver, monitor, conservator, or other designated
2614		-	24 fiduciary or officer of the court, by reason of their
2615		-	25 exercising these powers or performing these duties
2616		-	26 pursuant to the order of, or with the approval of, the
2617		-
2618		-
2619		-
2620		-
2621		-
2622		-	HB0742 Engrossed - 74 - LRB104 04637 BAB 14664 b
2623		-
2624		-
2625		-	HB0742 Engrossed- 75 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 75 - LRB104 04637 BAB 14664 b
2626		-	HB0742 Engrossed - 75 - LRB104 04637 BAB 14664 b
2627		-	1 circuit court.
2628		-	2 (2) The Secretary may include in any action relief
2629		-	3 authorized by Section 20-50. The circuit court shall have
2630		-	4 jurisdiction to award additional relief.
2631		-	5 (3) In any action brought by the Department, the
2632		-	6 Department may recover its costs and attorney's fees in
2633		-	7 connection with prosecuting the action if the Department
2634		-	8 is the prevailing party in the action.
2635		-	9 (b) The Attorney General may enforce a violation of
2636		-	10 Article 5 as an unlawful practice under the Consumer Fraud and
2637		-	11 Deceptive Business Practices Act.
2638		-	12 (c) A claim of violation of Article 5 may be asserted in a
2639		-	13 civil action. Additionally, a prevailing resident may be
2640		-	14 awarded reasonable attorney's fees and court costs.
2641		-	15 Article 30. Additional Procedural Provisions
2642		-	16 Section 30-5. Confidential supervisory information.
2643		-	17 (a) Confidential supervisory information shall, unless
2644		-	18 made a matter of public record, not be subject to disclosure
2645		-	19 under the Freedom of Information Act, and shall only be
2646		-	20 subject to disclosure pursuant to subpoena or court order as
2647		-	21 provided in subsection (e).
2648		-	22 (b) All records of communications or summaries of
2649		-	23 communications between employees, agents, or representatives
2650		-	24 of the Department and employees, agents, or representatives of
2651		-
2652		-
2653		-
2654		-
2655		-
2656		-	HB0742 Engrossed - 75 - LRB104 04637 BAB 14664 b
2657		-
2658		-
2659		-	HB0742 Engrossed- 76 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 76 - LRB104 04637 BAB 14664 b
2660		-	HB0742 Engrossed - 76 - LRB104 04637 BAB 14664 b
2661		-	1 other governmental agencies, a provider of any multistate
2662		-	2 licensing system, or associations or organizations
2663		-	3 representing federal, state, or local law enforcement or
2664		-	4 regulatory agencies or providers of any multistate licensing
2665		-	5 system, pursuant to any regulatory or supervision activity
2666		-	6 under this Act (1) shall not be subject to disclosure under the
2667		-	7 Freedom of Information Act, and (2) to the extent the records
2668		-	8 contain confidential supervisory information, shall only be
2669		-	9 subject to disclosure pursuant to subpoena or court order as
2670		-	10 provided in subsection (e).
2671		-	11 (c) All confidential supervisory information received from
2672		-	12 other governmental agencies, a multistate licensing system
2673		-	13 provider, or associations or organizations consisting of
2674		-	14 employees, agents, or representatives of such agencies or
2675		-	15 providers, shall not be subject to disclosure under the
2676		-	16 Freedom of Information Act, and only subject to disclosure
2677		-	17 pursuant to subpoena or court order as provided in subsection
2678		-	18 (e).
2679		-	19 (d) The sharing of any confidential supervisory
2680		-	20 information under this Act with governmental agencies,
2681		-	21 providers of any multistate licensing system, or associations
2682		-	22 or organizations consisting of employees, agents, or
2683		-	23 representatives of such federal, state, or local law
2684		-	24 enforcement or regulatory agencies, shall not result in the
2685		-	25 loss of privilege arising under federal or state law, or the
2686		-	26 loss of confidentiality protections provided by federal law or
2687		-
2688		-
2689		-
2690		-
2691		-
2692		-	HB0742 Engrossed - 76 - LRB104 04637 BAB 14664 b
2693		-
2694		-
2695		-	HB0742 Engrossed- 77 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 77 - LRB104 04637 BAB 14664 b
2696		-	HB0742 Engrossed - 77 - LRB104 04637 BAB 14664 b
2697		-	1 state law, and are only subject to disclosure pursuant to
2698		-	2 subpoena or court order as provided in subsection (e).
2699		-	3 (e) Confidential supervisory information may not be
2700		-	4 disclosed to anyone other than the regulated person, law
2701		-	5 enforcement officials or other regulatory agencies that have
2702		-	6 an appropriate regulatory interest as determined by the
2703		-	7 Secretary, or to a party presenting a lawful subpoena, order,
2704		-	8 or other judicial or administrative process to the Secretary.
2705		-	9 The Secretary may immediately appeal to the court of
2706		-	10 jurisdiction the disclosure of such confidential supervisory
2707		-	11 information and seek a stay of the subpoena pending the
2708		-	12 outcome of the appeal. Reports required of regulated persons
2709		-	13 by the Secretary under this Act and results of examinations
2710		-	14 performed by the Secretary under this Act shall be the
2711		-	15 property of only the Secretary but may be shared with the
2712		-	16 regulated person. Access under this Act to the books and
2713		-	17 records of each regulated person shall be limited to the
2714		-	18 Secretary and his agents as provided in this Act and to the
2715		-	19 regulated person and its authorized agents and designees. No
2716		-	20 other person shall have access to the books and records of a
2717		-	21 regulated person under this Act. Any person upon whom a demand
2718		-	22 for production of confidential supervisory information is
2719		-	23 made, whether by subpoena, order, or other judicial or
2720		-	24 administrative process, must withhold production of the
2721		-	25 confidential supervisory information and must notify the
2722		-	26 Secretary of the demand, at which time the Secretary is
2723		-
2724		-
2725		-
2726		-
2727		-
2728		-	HB0742 Engrossed - 77 - LRB104 04637 BAB 14664 b
2729		-
2730		-
2731		-	HB0742 Engrossed- 78 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 78 - LRB104 04637 BAB 14664 b
2732		-	HB0742 Engrossed - 78 - LRB104 04637 BAB 14664 b
2733		-	1 authorized to intervene for the purpose of enforcing the
2734		-	2 limitations of this Section or seeking the withdrawal or
2735		-	3 termination of the attempt to compel production of the
2736		-	4 confidential supervisory information. The Secretary may impose
2737		-	5 any conditions and limitations on the disclosure of
2738		-	6 confidential supervisory information that are necessary to
2739		-	7 protect the confidentiality of such information. Except as
2740		-	8 authorized by the Secretary, no person obtaining access to
2741		-	9 confidential supervisory information may make a copy of the
2742		-	10 confidential supervisory information. The Secretary may
2743		-	11 condition a decision to disclose confidential supervisory
2744		-	12 information on entry of a protective order by the court or
2745		-	13 administrative tribunal presiding in the particular case or on
2746		-	14 a written agreement of confidentiality. In a case in which a
2747		-	15 protective order or agreement has already been entered between
2748		-	16 parties other than the Secretary, the Secretary may
2749		-	17 nevertheless condition approval for release of confidential
2750		-	18 supervisory information upon the inclusion of additional or
2751		-	19 amended provisions in the protective order. The Secretary may
2752		-	20 authorize a party who obtained the records for use in one case
2753		-	21 to provide them to another party in another case, subject to
2754		-	22 any conditions that the Secretary may impose on either or both
2755		-	23 parties. The requester shall promptly notify other parties to
2756		-	24 a case of the release of confidential supervisory information
2757		-	25 obtained and, upon entry of a protective order, shall provide
2758		-	26 copies of confidential supervisory information to the other
2759		-
2760		-
2761		-
2762		-
2763		-
2764		-	HB0742 Engrossed - 78 - LRB104 04637 BAB 14664 b
2765		-
2766		-
2767		-	HB0742 Engrossed- 79 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 79 - LRB104 04637 BAB 14664 b
2768		-	HB0742 Engrossed - 79 - LRB104 04637 BAB 14664 b
2769		-	1 parties.
2770		-	2 (f) The Secretary is authorized to enter agreements or
2771		-	3 sharing arrangements with other governmental agencies,
2772		-	4 providers of any multistate licensing system, or associations
2773		-	5 or organizations representing governmental agencies or
2774		-	6 providers of any multistate licensing system. Notwithstanding
2775		-	7 the foregoing, the provisions of this Section shall apply
2776		-	8 regardless of the existence of any such agreement or sharing
2777		-	9 arrangement.
2778		-	10 (g) This Section in no way limits any right, privilege, or
2779		-	11 authority that the Department has pursuant to any other
2780		-	12 applicable law. This Section does not in any way limit any
2781		-	13 privilege arising under federal or state law or other
2782		-	14 exemption from disclosure pursuant to the Freedom of
2783		-	15 Information Act.
2784		-	16 (h) Notwithstanding the foregoing, whenever the Secretary
2785		-	17 determines, in his or her sole discretion, that it is in the
2786		-	18 public's interest, he or she may publicly disclose information
2787		-	19 or documents obtained under this Act, unless otherwise
2788		-	20 prohibited by law.
2789		-	21 Section 30-10. Additional rulemaking authority.
2790		-	22 (a) In addition to such powers and rulemaking authority as
2791		-	23 may be prescribed elsewhere in this Act or other financial
2792		-	24 laws administered by the Department, the Department is hereby
2793		-	25 authorized and empowered to adopt rules consistent with the
2794		-
2795		-
2796		-
2797		-
2798		-
2799		-	HB0742 Engrossed - 79 - LRB104 04637 BAB 14664 b
2800		-
2801		-
2802		-	HB0742 Engrossed- 80 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 80 - LRB104 04637 BAB 14664 b
2803		-	HB0742 Engrossed - 80 - LRB104 04637 BAB 14664 b
2804		-	1 purposes of this Act, including, but not limited to:
2805		-	2 (1) rules in connection with the activities of covered
2806		-	3 persons, affiliates, and service providers as may be
2807		-	4 necessary and appropriate for the protection of residents;
2808		-	5 (2) rules to define the terms used in this Act and as
2809		-	6 may be necessary and appropriate to interpret and
2810		-	7 implement the provisions of this Act;
2811		-	8 (3) rules as may be necessary for the administration
2812		-	9 and enforcement of this Act;
2813		-	10 (4) rules to set and collect fees necessary to
2814		-	11 administer and enforce this Act;
2815		-	12 (5) rules in connection with the activities of covered
2816		-	13 persons, affiliates, and service providers as may be
2817		-	14 necessary and appropriate for the safety and soundness of
2818		-	15 such covered persons and affiliates and the stability of
2819		-	16 the financial system in this State.
2820		-	17 (b) The Secretary is hereby authorized and empowered to
2821		-	18 make specific rulings, demands, and findings that he or she
2822		-	19 deems necessary for the proper conduct of the registrants and
2823		-	20 affiliates thereof.
2824		-	21 Article 35. Miscellaneous Provisions
2825		-	22 Section 35-5. No evasion.
2826		-	23 (a) It shall be unlawful to engage in any device,
2827		-	24 subterfuge, or pretense to willfully evade or attempt to evade
2828		-
2829		-
2830		-
2831		-
2832		-
2833		-	HB0742 Engrossed - 80 - LRB104 04637 BAB 14664 b
2834		-
2835		-
2836		-	HB0742 Engrossed- 81 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 81 - LRB104 04637 BAB 14664 b
2837		-	HB0742 Engrossed - 81 - LRB104 04637 BAB 14664 b
2838		-	1 the requirements of this Act or any rule or order issued by the
2839		-	2 Department hereunder.
2840		-	3 (b) Any financial product, service, or transaction that is
2841		-	4 willfully structured to evade or attempt to evade the
2842		-	5 definitions of digital asset or digital asset business
2843		-	6 activity is a digital asset or digital asset business
2844		-	7 activity, respectively, for purposes of this Act.
2845		-	8 Section 35-10. Construction; severability.
2846		-	9 (a) The provisions of this Act shall be liberally
2847		-	10 construed to effectuate its purposes.
2848		-	11 (b) The provisions of this Act are severable under Section
2849		-	12 1.31 of the Statute on Statutes.
2850		-	13 (c) To the extent that any provision of this Act is
2851		-	14 preempted by federal law, the provision shall not apply and
2852		-	15 shall not be enforced solely as to the extent of the preemption
2853		-	16 and not as to other circumstances, persons, or applications.
2854		-	17 Section 35-15. Transition period.
2855		-	18 (a) A covered person engaging in digital asset business
2856		-	19 activity without a registration under this Act shall not be
2857		-	20 considered in violation of Section 15-5 or 5-25 until July 1,
2858		-	21 2027.
2859		-	22 (b) A covered person engaging in digital asset business
2860		-	23 activity shall not be considered in violation of Sections 5-5,
2861		-	24 5-10, and 5-20 until January 1, 2027.
2862		-
2863		-
2864		-
2865		-
2866		-
2867		-	HB0742 Engrossed - 81 - LRB104 04637 BAB 14664 b
2868		-
2869		-
2870		-	HB0742 Engrossed- 82 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 82 - LRB104 04637 BAB 14664 b
2871		-	HB0742 Engrossed - 82 - LRB104 04637 BAB 14664 b
2872		-	1 (c) A covered exchange shall not be considered in
2873		-	2 violation of Section 5-15 until January 1, 2027.
2874		-	3 (d) Notwithstanding the foregoing, the Department may
2875		-	4 adopt rules pursuant to this Act upon this Act becoming law
2876		-	5 with such rules not to take effect earlier than January 1,
2877		-	6 2026.".
2878		-	7 Article 90. Amendatory provisions
2879		-	8 Section 90-5. The Freedom of Information Act is amended by
2880		-	9 changing Section 7.5 as follows:
2881		-	10 (5 ILCS 140/7.5)
2882		-	11 Sec. 7.5. Statutory exemptions. To the extent provided for
2883		-	12 by the statutes referenced below, the following shall be
2884		-	13 exempt from inspection and copying:
2885		-	14 (a) All information determined to be confidential
2886		-	15 under Section 4002 of the Technology Advancement and
2887		-	16 Development Act.
2888		-	17 (b) Library circulation and order records identifying
2889		-	18 library users with specific materials under the Library
2890		-	19 Records Confidentiality Act.
2891		-	20 (c) Applications, related documents, and medical
2892		-	21 records received by the Experimental Organ Transplantation
2893		-	22 Procedures Board and any and all documents or other
2894		-	23 records prepared by the Experimental Organ Transplantation
2895		-
2896		-
2897		-
2898		-
2899		-
2900		-	HB0742 Engrossed - 82 - LRB104 04637 BAB 14664 b
2901		-
2902		-
2903		-	HB0742 Engrossed- 83 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 83 - LRB104 04637 BAB 14664 b
2904		-	HB0742 Engrossed - 83 - LRB104 04637 BAB 14664 b
2905		-	1 Procedures Board or its staff relating to applications it
2906		-	2 has received.
2907		-	3 (d) Information and records held by the Department of
2908		-	4 Public Health and its authorized representatives relating
2909		-	5 to known or suspected cases of sexually transmitted
2910		-	6 infection or any information the disclosure of which is
2911		-	7 restricted under the Illinois Sexually Transmitted
2912		-	8 Infection Control Act.
2913		-	9 (e) Information the disclosure of which is exempted
2914		-	10 under Section 30 of the Radon Industry Licensing Act.
2915		-	11 (f) Firm performance evaluations under Section 55 of
2916		-	12 the Architectural, Engineering, and Land Surveying
2917		-	13 Qualifications Based Selection Act.
2918		-	14 (g) Information the disclosure of which is restricted
2919		-	15 and exempted under Section 50 of the Illinois Prepaid
2920		-	16 Tuition Act.
2921		-	17 (h) Information the disclosure of which is exempted
2922		-	18 under the State Officials and Employees Ethics Act, and
2923		-	19 records of any lawfully created State or local inspector
2924		-	20 general's office that would be exempt if created or
2925		-	21 obtained by an Executive Inspector General's office under
2926		-	22 that Act.
2927		-	23 (i) Information contained in a local emergency energy
2928		-	24 plan submitted to a municipality in accordance with a
2929		-	25 local emergency energy plan ordinance that is adopted
2930		-	26 under Section 11-21.5-5 of the Illinois Municipal Code.
2931		-
2932		-
2933		-
2934		-
2935		-
2936		-	HB0742 Engrossed - 83 - LRB104 04637 BAB 14664 b
2937		-
2938		-
2939		-	HB0742 Engrossed- 84 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 84 - LRB104 04637 BAB 14664 b
2940		-	HB0742 Engrossed - 84 - LRB104 04637 BAB 14664 b
2941		-	1 (j) Information and data concerning the distribution
2942		-	2 of surcharge moneys collected and remitted by carriers
2943		-	3 under the Emergency Telephone System Act.
2944		-	4 (k) Law enforcement officer identification information
2945		-	5 or driver identification information compiled by a law
2946		-	6 enforcement agency or the Department of Transportation
2947		-	7 under Section 11-212 of the Illinois Vehicle Code.
2948		-	8 (l) Records and information provided to a residential
2949		-	9 health care facility resident sexual assault and death
2950		-	10 review team or the Executive Council under the Abuse
2951		-	11 Prevention Review Team Act.
2952		-	12 (m) Information provided to the predatory lending
2953		-	13 database created pursuant to Article 3 of the Residential
2954		-	14 Real Property Disclosure Act, except to the extent
2955		-	15 authorized under that Article.
2956		-	16 (n) Defense budgets and petitions for certification of
2957		-	17 compensation and expenses for court appointed trial
2958		-	18 counsel as provided under Sections 10 and 15 of the
2959		-	19 Capital Crimes Litigation Act (repealed). This subsection
2960		-	20 (n) shall apply until the conclusion of the trial of the
2961		-	21 case, even if the prosecution chooses not to pursue the
2962		-	22 death penalty prior to trial or sentencing.
2963		-	23 (o) Information that is prohibited from being
2964		-	24 disclosed under Section 4 of the Illinois Health and
2965		-	25 Hazardous Substances Registry Act.
2966		-	26 (p) Security portions of system safety program plans,
2967		-
2968		-
2969		-
2970		-
2971		-
2972		-	HB0742 Engrossed - 84 - LRB104 04637 BAB 14664 b
2973		-
2974		-
2975		-	HB0742 Engrossed- 85 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 85 - LRB104 04637 BAB 14664 b
2976		-	HB0742 Engrossed - 85 - LRB104 04637 BAB 14664 b
2977		-	1 investigation reports, surveys, schedules, lists, data, or
2978		-	2 information compiled, collected, or prepared by or for the
2979		-	3 Department of Transportation under Sections 2705-300 and
2980		-	4 2705-616 of the Department of Transportation Law of the
2981		-	5 Civil Administrative Code of Illinois, the Regional
2982		-	6 Transportation Authority under Section 2.11 of the
2983		-	7 Regional Transportation Authority Act, or the St. Clair
2984		-	8 County Transit District under the Bi-State Transit Safety
2985		-	9 Act (repealed).
2986		-	10 (q) Information prohibited from being disclosed by the
2987		-	11 Personnel Record Review Act.
2988		-	12 (r) Information prohibited from being disclosed by the
2989		-	13 Illinois School Student Records Act.
2990		-	14 (s) Information the disclosure of which is restricted
2991		-	15 under Section 5-108 of the Public Utilities Act.
2992		-	16 (t) (Blank).
2993		-	17 (u) Records and information provided to an independent
2994		-	18 team of experts under the Developmental Disability and
2995		-	19 Mental Health Safety Act (also known as Brian's Law).
2996		-	20 (v) Names and information of people who have applied
2997		-	21 for or received Firearm Owner's Identification Cards under
2998		-	22 the Firearm Owners Identification Card Act or applied for
2999		-	23 or received a concealed carry license under the Firearm
3000		-	24 Concealed Carry Act, unless otherwise authorized by the
3001		-	25 Firearm Concealed Carry Act; and databases under the
3002		-	26 Firearm Concealed Carry Act, records of the Concealed
3003		-
3004		-
3005		-
3006		-
3007		-
3008		-	HB0742 Engrossed - 85 - LRB104 04637 BAB 14664 b
3009		-
3010		-
3011		-	HB0742 Engrossed- 86 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 86 - LRB104 04637 BAB 14664 b
3012		-	HB0742 Engrossed - 86 - LRB104 04637 BAB 14664 b
3013		-	1 Carry Licensing Review Board under the Firearm Concealed
3014		-	2 Carry Act, and law enforcement agency objections under the
3015		-	3 Firearm Concealed Carry Act.
3016		-	4 (v-5) Records of the Firearm Owner's Identification
3017		-	5 Card Review Board that are exempted from disclosure under
3018		-	6 Section 10 of the Firearm Owners Identification Card Act.
3019		-	7 (w) Personally identifiable information which is
3020		-	8 exempted from disclosure under subsection (g) of Section
3021		-	9 19.1 of the Toll Highway Act.
3022		-	10 (x) Information which is exempted from disclosure
3023		-	11 under Section 5-1014.3 of the Counties Code or Section
3024		-	12 8-11-21 of the Illinois Municipal Code.
3025		-	13 (y) Confidential information under the Adult
3026		-	14 Protective Services Act and its predecessor enabling
3027		-	15 statute, the Elder Abuse and Neglect Act, including
3028		-	16 information about the identity and administrative finding
3029		-	17 against any caregiver of a verified and substantiated
3030		-	18 decision of abuse, neglect, or financial exploitation of
3031		-	19 an eligible adult maintained in the Registry established
3032		-	20 under Section 7.5 of the Adult Protective Services Act.
3033		-	21 (z) Records and information provided to a fatality
3034		-	22 review team or the Illinois Fatality Review Team Advisory
3035		-	23 Council under Section 15 of the Adult Protective Services
3036		-	24 Act.
3037		-	25 (aa) Information which is exempted from disclosure
3038		-	26 under Section 2.37 of the Wildlife Code.
3039		-
3040		-
3041		-
3042		-
3043		-
3044		-	HB0742 Engrossed - 86 - LRB104 04637 BAB 14664 b
3045		-
3046		-
3047		-	HB0742 Engrossed- 87 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 87 - LRB104 04637 BAB 14664 b
3048		-	HB0742 Engrossed - 87 - LRB104 04637 BAB 14664 b
3049		-	1 (bb) Information which is or was prohibited from
3050		-	2 disclosure by the Juvenile Court Act of 1987.
3051		-	3 (cc) Recordings made under the Law Enforcement
3052		-	4 Officer-Worn Body Camera Act, except to the extent
3053		-	5 authorized under that Act.
3054		-	6 (dd) Information that is prohibited from being
3055		-	7 disclosed under Section 45 of the Condominium and Common
3056		-	8 Interest Community Ombudsperson Act.
3057		-	9 (ee) Information that is exempted from disclosure
3058		-	10 under Section 30.1 of the Pharmacy Practice Act.
3059		-	11 (ff) Information that is exempted from disclosure
3060		-	12 under the Revised Uniform Unclaimed Property Act.
3061		-	13 (gg) Information that is prohibited from being
3062		-	14 disclosed under Section 7-603.5 of the Illinois Vehicle
3063		-	15 Code.
3064		-	16 (hh) Records that are exempt from disclosure under
3065		-	17 Section 1A-16.7 of the Election Code.
3066		-	18 (ii) Information which is exempted from disclosure
3067		-	19 under Section 2505-800 of the Department of Revenue Law of
3068		-	20 the Civil Administrative Code of Illinois.
3069		-	21 (jj) Information and reports that are required to be
3070		-	22 submitted to the Department of Labor by registering day
3071		-	23 and temporary labor service agencies but are exempt from
3072		-	24 disclosure under subsection (a-1) of Section 45 of the Day
3073		-	25 and Temporary Labor Services Act.
3074		-	26 (kk) Information prohibited from disclosure under the
3075		-
3076		-
3077		-
3078		-
3079		-
3080		-	HB0742 Engrossed - 87 - LRB104 04637 BAB 14664 b
3081		-
3082		-
3083		-	HB0742 Engrossed- 88 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 88 - LRB104 04637 BAB 14664 b
3084		-	HB0742 Engrossed - 88 - LRB104 04637 BAB 14664 b
3085		-	1 Seizure and Forfeiture Reporting Act.
3086		-	2 (ll) Information the disclosure of which is restricted
3087		-	3 and exempted under Section 5-30.8 of the Illinois Public
3088		-	4 Aid Code.
3089		-	5 (mm) Records that are exempt from disclosure under
3090		-	6 Section 4.2 of the Crime Victims Compensation Act.
3091		-	7 (nn) Information that is exempt from disclosure under
3092		-	8 Section 70 of the Higher Education Student Assistance Act.
3093		-	9 (oo) Communications, notes, records, and reports
3094		-	10 arising out of a peer support counseling session
3095		-	11 prohibited from disclosure under the First Responders
3096		-	12 Suicide Prevention Act.
3097		-	13 (pp) Names and all identifying information relating to
3098		-	14 an employee of an emergency services provider or law
3099		-	15 enforcement agency under the First Responders Suicide
3100		-	16 Prevention Act.
3101		-	17 (qq) Information and records held by the Department of
3102		-	18 Public Health and its authorized representatives collected
3103		-	19 under the Reproductive Health Act.
3104		-	20 (rr) Information that is exempt from disclosure under
3105		-	21 the Cannabis Regulation and Tax Act.
3106		-	22 (ss) Data reported by an employer to the Department of
3107		-	23 Human Rights pursuant to Section 2-108 of the Illinois
3108		-	24 Human Rights Act.
3109		-	25 (tt) Recordings made under the Children's Advocacy
3110		-	26 Center Act, except to the extent authorized under that
3111		-
3112		-
3113		-
3114		-
3115		-
3116		-	HB0742 Engrossed - 88 - LRB104 04637 BAB 14664 b
3117		-
3118		-
3119		-	HB0742 Engrossed- 89 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 89 - LRB104 04637 BAB 14664 b
3120		-	HB0742 Engrossed - 89 - LRB104 04637 BAB 14664 b
3121		-	1 Act.
3122		-	2 (uu) Information that is exempt from disclosure under
3123		-	3 Section 50 of the Sexual Assault Evidence Submission Act.
3124		-	4 (vv) Information that is exempt from disclosure under
3125		-	5 subsections (f) and (j) of Section 5-36 of the Illinois
3126		-	6 Public Aid Code.
3127		-	7 (ww) Information that is exempt from disclosure under
3128		-	8 Section 16.8 of the State Treasurer Act.
3129		-	9 (xx) Information that is exempt from disclosure or
3130		-	10 information that shall not be made public under the
3131		-	11 Illinois Insurance Code.
3132		-	12 (yy) Information prohibited from being disclosed under
3133		-	13 the Illinois Educational Labor Relations Act.
3134		-	14 (zz) Information prohibited from being disclosed under
3135		-	15 the Illinois Public Labor Relations Act.
3136		-	16 (aaa) Information prohibited from being disclosed
3137		-	17 under Section 1-167 of the Illinois Pension Code.
3138		-	18 (bbb) Information that is prohibited from disclosure
3139		-	19 by the Illinois Police Training Act and the Illinois State
3140		-	20 Police Act.
3141		-	21 (ccc) Records exempt from disclosure under Section
3142		-	22 2605-304 of the Illinois State Police Law of the Civil
3143		-	23 Administrative Code of Illinois.
3144		-	24 (ddd) Information prohibited from being disclosed
3145		-	25 under Section 35 of the Address Confidentiality for
3146		-	26 Victims of Domestic Violence, Sexual Assault, Human
3147		-
3148		-
3149		-
3150		-
3151		-
3152		-	HB0742 Engrossed - 89 - LRB104 04637 BAB 14664 b
3153		-
3154		-
3155		-	HB0742 Engrossed- 90 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 90 - LRB104 04637 BAB 14664 b
3156		-	HB0742 Engrossed - 90 - LRB104 04637 BAB 14664 b
3157		-	1 Trafficking, or Stalking Act.
3158		-	2 (eee) Information prohibited from being disclosed
3159		-	3 under subsection (b) of Section 75 of the Domestic
3160		-	4 Violence Fatality Review Act.
3161		-	5 (fff) Images from cameras under the Expressway Camera
3162		-	6 Act. This subsection (fff) is inoperative on and after
3163		-	7 July 1, 2025.
3164		-	8 (ggg) Information prohibited from disclosure under
3165		-	9 paragraph (3) of subsection (a) of Section 14 of the Nurse
3166		-	10 Agency Licensing Act.
3167		-	11 (hhh) Information submitted to the Illinois State
3168		-	12 Police in an affidavit or application for an assault
3169		-	13 weapon endorsement, assault weapon attachment endorsement,
3170		-	14 .50 caliber rifle endorsement, or .50 caliber cartridge
3171		-	15 endorsement under the Firearm Owners Identification Card
3172		-	16 Act.
3173		-	17 (iii) Data exempt from disclosure under Section 50 of
3174		-	18 the School Safety Drill Act.
3175		-	19 (jjj) Information exempt from disclosure under Section
3176		-	20 30 of the Insurance Data Security Law.
3177		-	21 (kkk) Confidential business information prohibited
3178		-	22 from disclosure under Section 45 of the Paint Stewardship
3179		-	23 Act.
3180		-	24 (lll) Data exempt from disclosure under Section
3181		-	25 2-3.196 of the School Code.
3182		-	26 (mmm) Information prohibited from being disclosed
3183		-
3184		-
3185		-
3186		-
3187		-
3188		-	HB0742 Engrossed - 90 - LRB104 04637 BAB 14664 b
3189		-
3190		-
3191		-	HB0742 Engrossed- 91 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 91 - LRB104 04637 BAB 14664 b
3192		-	HB0742 Engrossed - 91 - LRB104 04637 BAB 14664 b
3193		-	1 under subsection (e) of Section 1-129 of the Illinois
3194		-	2 Power Agency Act.
3195		-	3 (nnn) Materials received by the Department of Commerce
3196		-	4 and Economic Opportunity that are confidential under the
3197		-	5 Music and Musicians Tax Credit and Jobs Act.
3198		-	6 (ooo) Data or information provided pursuant to Section
3199		-	7 20 of the Statewide Recycling Needs and Assessment Act.
3200		-	8 (ppp) Information that is exempt from disclosure under
3201		-	9 Section 28-11 of the Lawful Health Care Activity Act.
3202		-	10 (qqq) Information that is exempt from disclosure under
3203		-	11 Section 7-101 of the Illinois Human Rights Act.
3204		-	12 (rrr) Information prohibited from being disclosed
3205		-	13 under Section 4-2 of the Uniform Money Transmission
3206		-	14 Modernization Act.
3207		-	15 (sss) Information exempt from disclosure under Section
3208		-	16 40 of the Student-Athlete Endorsement Rights Act.
3209		-	17 (ttt) Audio recordings made under Section 30 of the
3210		-	18 Illinois State Police Act, except to the extent authorized
3211		-	19 under that Section.
3212		-	20 (uuu) Information prohibited from being disclosed
3213		-	21 under Section 30-5 of the Digital Assets Regulation Act.
3214		-	22 (Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22;
3215		-	23 102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.
3216		-	24 8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;
3217		-	25 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.
3218		-	26 6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,
3219		-
3220		-
3221		-
3222		-
3223		-
3224		-	HB0742 Engrossed - 91 - LRB104 04637 BAB 14664 b
3225		-
3226		-
3227		-	HB0742 Engrossed- 92 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 92 - LRB104 04637 BAB 14664 b
3228		-	HB0742 Engrossed - 92 - LRB104 04637 BAB 14664 b
3229		-	1 eff. 1-1-24; 103-472, eff. 8-1-24; 103-508, eff. 8-4-23;
3230		-	2 103-580, eff. 12-8-23; 103-592, eff. 6-7-24; 103-605, eff.
3231		-	3 7-1-24; 103-636, eff. 7-1-24; 103-724, eff. 1-1-25; 103-786,
3232		-	4 eff. 8-7-24; 103-859, eff. 8-9-24; 103-991, eff. 8-9-24;
3233		-	5 103-1049, eff. 8-9-24; 103-1081, eff. 3-21-25.)
3234		-	6 Section 90-10. The State Finance Act is amended by adding
3235		-	7 Section 5.1030 as follows:
3236		-	8 (30 ILCS 105/5.1030 new)
3237		-	9 Sec. 5.1030. The Consumer Protection Fund.
3238		-	10 Section 90-15. The Illinois Banking Act is amended by
3239		-	11 changing Sections 2 and 30 as follows:
3240		-	12 (205 ILCS 5/2) (from Ch. 17, par. 302)
3241		-	13 Sec. 2. General definitions. In this Act, unless the
3242		-	14 context otherwise requires, the following words and phrases
3243		-	15 shall have the following meanings:
3244		-	16 "Accommodation party" shall have the meaning ascribed to
3245		-	17 that term in Section 3-419 of the Uniform Commercial Code.
3246		-	18 "Action" in the sense of a judicial proceeding includes
3247		-	19 recoupments, counterclaims, set-off, and any other proceeding
3248		-	20 in which rights are determined.
3249		-	21 "Affiliate facility" of a bank means a main banking
3250		-	22 premises or branch of another commonly owned bank. The main
3251		-
3252		-
3253		-
3254		-
3255		-
3256		-	HB0742 Engrossed - 92 - LRB104 04637 BAB 14664 b
3257		-
3258		-
3259		-	HB0742 Engrossed- 93 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 93 - LRB104 04637 BAB 14664 b
3260		-	HB0742 Engrossed - 93 - LRB104 04637 BAB 14664 b
3261		-	1 banking premises or any branch of a bank may be an "affiliate
3262		-	2 facility" with respect to one or more other commonly owned
3263		-	3 banks.
3264		-	4 "Appropriate federal banking agency" means the Federal
3265		-	5 Deposit Insurance Corporation, the Federal Reserve Bank of
3266		-	6 Chicago, or the Federal Reserve Bank of St. Louis, as
3267		-	7 determined by federal law.
3268		-	8 "Bank" means any person doing a banking business whether
3269		-	9 subject to the laws of this or any other jurisdiction.
3270		-	10 A "banking house", "branch", "branch bank", or "branch
3271		-	11 office" shall mean any place of business of a bank at which
3272		-	12 deposits are received, checks paid, or loans made, but shall
3273		-	13 not include any place at which only records thereof are made,
3274		-	14 posted, or kept. A place of business at which deposits are
3275		-	15 received, checks paid, or loans made shall not be deemed to be
3276		-	16 a branch, branch bank, or branch office if the place of
3277		-	17 business is adjacent to and connected with the main banking
3278		-	18 premises, or if it is separated from the main banking premises
3279		-	19 by not more than an alley; provided always that (i) if the
3280		-	20 place of business is separated by an alley from the main
3281		-	21 banking premises there is a connection between the two by
3282		-	22 public or private way or by subterranean or overhead passage,
3283		-	23 and (ii) if the place of business is in a building not wholly
3284		-	24 occupied by the bank, the place of business shall not be within
3285		-	25 any office or room in which any other business or service of
3286		-	26 any kind or nature other than the business of the bank is
3287		-
3288		-
3289		-
3290		-
3291		-
3292		-	HB0742 Engrossed - 93 - LRB104 04637 BAB 14664 b
3293		-
3294		-
3295		-	HB0742 Engrossed- 94 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 94 - LRB104 04637 BAB 14664 b
3296		-	HB0742 Engrossed - 94 - LRB104 04637 BAB 14664 b
3297		-	1 conducted or carried on. A place of business at which deposits
3298		-	2 are received, checks paid, or loans made shall not be deemed to
3299		-	3 be a branch, branch bank, or branch office (i) of any bank if
3300		-	4 the place is a terminal established and maintained in
3301		-	5 accordance with paragraph (17) of Section 5 of this Act, or
3302		-	6 (ii) of a commonly owned bank by virtue of transactions
3303		-	7 conducted at that place on behalf of the other commonly owned
3304		-	8 bank under paragraph (23) of Section 5 of this Act if the place
3305		-	9 is an affiliate facility with respect to the other bank.
3306		-	10 "Branch of an out-of-state bank" means a branch
3307		-	11 established or maintained in Illinois by an out-of-state bank
3308		-	12 as a result of a merger between an Illinois bank and the
3309		-	13 out-of-state bank that occurs on or after May 31, 1997, or any
3310		-	14 branch established by the out-of-state bank following the
3311		-	15 merger.
3312		-	16 "Bylaws" means the bylaws of a bank that are adopted by the
3313		-	17 bank's board of directors or shareholders for the regulation
3314		-	18 and management of the bank's affairs. If the bank operates as a
3315		-	19 limited liability company, however, "bylaws" means the
3316		-	20 operating agreement of the bank.
3317		-	21 "Call report fee" means the fee to be paid to the
3318		-	22 Commissioner by each State bank pursuant to paragraph (a) of
3319		-	23 subsection (3) of Section 48 of this Act.
3320		-	24 "Capital" includes the aggregate of outstanding capital
3321		-	25 stock and preferred stock.
3322		-	26 "Cash flow reserve account" means the account within the
3323		-
3324		-
3325		-
3326		-
3327		-
3328		-	HB0742 Engrossed - 94 - LRB104 04637 BAB 14664 b
3329		-
3330		-
3331		-	HB0742 Engrossed- 95 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 95 - LRB104 04637 BAB 14664 b
3332		-	HB0742 Engrossed - 95 - LRB104 04637 BAB 14664 b
3333		-	1 books and records of the Commissioner of Banks and Real Estate
3334		-	2 used to record funds designated to maintain a reasonable Bank
3335		-	3 and Trust Company Fund operating balance to meet agency
3336		-	4 obligations on a timely basis.
3337		-	5 "Charter" includes the original charter and all amendments
3338		-	6 thereto and articles of merger or consolidation.
3339		-	7 "Commissioner" means the Commissioner of Banks and Real
3340		-	8 Estate, except that beginning on April 6, 2009 (the effective
3341		-	9 date of Public Act 95-1047), all references in this Act to the
3342		-	10 Commissioner of Banks and Real Estate are deemed, in
3343		-	11 appropriate contexts, to be references to the Secretary of
3344		-	12 Financial and Professional Regulation.
3345		-	13 "Commonly owned banks" means 2 or more banks that each
3346		-	14 qualify as a bank subsidiary of the same bank holding company
3347		-	15 pursuant to Section 18 of the Federal Deposit Insurance Act;
3348		-	16 "commonly owned bank" refers to one of a group of commonly
3349		-	17 owned banks but only with respect to one or more of the other
3350		-	18 banks in the same group.
3351		-	19 "Community" means a city, village, or incorporated town
3352		-	20 and also includes the area served by the banking offices of a
3353		-	21 bank, but need not be limited or expanded to conform to the
3354		-	22 geographic boundaries of units of local government.
3355		-	23 "Company" means a corporation, limited liability company,
3356		-	24 partnership, business trust, association, or similar
3357		-	25 organization and, unless specifically excluded, includes a
3358		-	26 "State bank" and a "bank".
3359		-
3360		-
3361		-
3362		-
3363		-
3364		-	HB0742 Engrossed - 95 - LRB104 04637 BAB 14664 b
3365		-
3366		-
3367		-	HB0742 Engrossed- 96 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 96 - LRB104 04637 BAB 14664 b
3368		-	HB0742 Engrossed - 96 - LRB104 04637 BAB 14664 b
3369		-	1 "Consolidating bank" means a party to a consolidation.
3370		-	2 "Consolidation" takes place when 2 or more banks, or a
3371		-	3 trust company and a bank, are extinguished and by the same
3372		-	4 process a new bank is created, taking over the assets and
3373		-	5 assuming the liabilities of the banks or trust company passing
3374		-	6 out of existence.
3375		-	7 "Continuing bank" means a merging bank, the charter of
3376		-	8 which becomes the charter of the resulting bank.
3377		-	9 "Converting bank" means a State bank converting to become
3378		-	10 a national bank, or a national bank converting to become a
3379		-	11 State bank.
3380		-	12 "Converting trust company" means a trust company
3381		-	13 converting to become a State bank.
3382		-	14 "Court" means a court of competent jurisdiction.
3383		-	15 "Director" means a member of the board of directors of a
3384		-	16 bank. In the case of a manager-managed limited liability
3385		-	17 company, however, "director" means a manager of the bank and,
3386		-	18 in the case of a member-managed limited liability company,
3387		-	19 "director" means a member of the bank. The term "director"
3388		-	20 does not include an advisory director, honorary director,
3389		-	21 director emeritus, or similar person, unless the person is
3390		-	22 otherwise performing functions similar to those of a member of
3391		-	23 the board of directors.
3392		-	24 "Director of Banking" means the Director of the Division
3393		-	25 of Banking of the Department of Financial and Professional
3394		-	26 Regulation.
3395		-
3396		-
3397		-
3398		-
3399		-
3400		-	HB0742 Engrossed - 96 - LRB104 04637 BAB 14664 b
3401		-
3402		-
3403		-	HB0742 Engrossed- 97 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 97 - LRB104 04637 BAB 14664 b
3404		-	HB0742 Engrossed - 97 - LRB104 04637 BAB 14664 b
3405		-	1 "Eligible depository institution" means an insured savings
3406		-	2 association that is in default, an insured savings association
3407		-	3 that is in danger of default, a State or national bank that is
3408		-	4 in default or a State or national bank that is in danger of
3409		-	5 default, as those terms are defined in this Section, or a new
3410		-	6 bank as that term is defined in Section 11(m) of the Federal
3411		-	7 Deposit Insurance Act or a bridge bank as that term is defined
3412		-	8 in Section 11(n) of the Federal Deposit Insurance Act or a new
3413		-	9 federal savings association authorized under Section
3414		-	10 11(d)(2)(f) of the Federal Deposit Insurance Act.
3415		-	11 "Fiduciary" means trustee, agent, executor, administrator,
3416		-	12 committee, guardian for a minor or for a person under legal
3417		-	13 disability, receiver, trustee in bankruptcy, assignee for
3418		-	14 creditors, or any holder of similar position of trust.
3419		-	15 "Financial institution" means a bank, savings bank,
3420		-	16 savings and loan association, credit union, or any licensee
3421		-	17 under the Consumer Installment Loan Act or the Sales Finance
3422		-	18 Agency Act and, for purposes of Section 48.3, any proprietary
3423		-	19 network, funds transfer corporation, or other entity providing
3424		-	20 electronic funds transfer services, or any corporate
3425		-	21 fiduciary, its subsidiaries, affiliates, parent company, or
3426		-	22 contractual service provider that is examined by the
3427		-	23 Commissioner. For purposes of Section 5c and subsection (b) of
3428		-	24 Section 13 of this Act, "financial institution" includes any
3429		-	25 proprietary network, funds transfer corporation, or other
3430		-	26 entity providing electronic funds transfer services, and any
3431		-
3432		-
3433		-
3434		-
3435		-
3436		-	HB0742 Engrossed - 97 - LRB104 04637 BAB 14664 b
3437		-
3438		-
3439		-	HB0742 Engrossed- 98 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 98 - LRB104 04637 BAB 14664 b
3440		-	HB0742 Engrossed - 98 - LRB104 04637 BAB 14664 b
3441		-	1 corporate fiduciary.
3442		-	2 "Foundation" means the Illinois Bank Examiners' Education
3443		-	3 Foundation.
3444		-	4 "General obligation" means a bond, note, debenture,
3445		-	5 security, or other instrument evidencing an obligation of the
3446		-	6 government entity that is the issuer that is supported by the
3447		-	7 full available resources of the issuer, the principal and
3448		-	8 interest of which is payable in whole or in part by taxation.
3449		-	9 "Guarantee" means an undertaking or promise to answer for
3450		-	10 payment of another's debt or performance of another's duty,
3451		-	11 liability, or obligation whether "payment guaranteed" or
3452		-	12 "collection guaranteed".
3453		-	13 "In danger of default" means a State or national bank, a
3454		-	14 federally chartered insured savings association, or an
3455		-	15 Illinois state chartered insured savings association with
3456		-	16 respect to which the Commissioner or the appropriate federal
3457		-	17 banking agency has advised the Federal Deposit Insurance
3458		-	18 Corporation that:
3459		-	19 (1) in the opinion of the Commissioner or the
3460		-	20 appropriate federal banking agency,
3461		-	21 (A) the State or national bank or insured savings
3462		-	22 association is not likely to be able to meet the
3463		-	23 demands of the State or national bank's or savings
3464		-	24 association's obligations in the normal course of
3465		-	25 business; and
3466		-	26 (B) there is no reasonable prospect that the State
3467		-
3468		-
3469		-
3470		-
3471		-
3472		-	HB0742 Engrossed - 98 - LRB104 04637 BAB 14664 b
3473		-
3474		-
3475		-	HB0742 Engrossed- 99 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 99 - LRB104 04637 BAB 14664 b
3476		-	HB0742 Engrossed - 99 - LRB104 04637 BAB 14664 b
3477		-	1 or national bank or insured savings association will
3478		-	2 be able to meet those demands or pay those obligations
3479		-	3 without federal assistance; or
3480		-	4 (2) in the opinion of the Commissioner or the
3481		-	5 appropriate federal banking agency,
3482		-	6 (A) the State or national bank or insured savings
3483		-	7 association has incurred or is likely to incur losses
3484		-	8 that will deplete all or substantially all of its
3485		-	9 capital; and
3486		-	10 (B) there is no reasonable prospect that the
3487		-	11 capital of the State or national bank or insured
3488		-	12 savings association will be replenished without
3489		-	13 federal assistance.
3490		-	14 "In default" means, with respect to a State or national
3491		-	15 bank or an insured savings association, any adjudication or
3492		-	16 other official determination by any court of competent
3493		-	17 jurisdiction, the Commissioner, the appropriate federal
3494		-	18 banking agency, or other public authority pursuant to which a
3495		-	19 conservator, receiver, or other legal custodian is appointed
3496		-	20 for a State or national bank or an insured savings
3497		-	21 association.
3498		-	22 "Insured savings association" means any federal savings
3499		-	23 association chartered under Section 5 of the federal Home
3500		-	24 Owners' Loan Act and any State savings association chartered
3501		-	25 under the Illinois Savings and Loan Act of 1985 or a
3502		-	26 predecessor Illinois statute, the deposits of which are
3503		-
3504		-
3505		-
3506		-
3507		-
3508		-	HB0742 Engrossed - 99 - LRB104 04637 BAB 14664 b
3509		-
3510		-
3511		-	HB0742 Engrossed- 100 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 100 - LRB104 04637 BAB 14664 b
3512		-	HB0742 Engrossed - 100 - LRB104 04637 BAB 14664 b
3513		-	1 insured by the Federal Deposit Insurance Corporation. The term
3514		-	2 also includes a savings bank organized or operating under the
3515		-	3 Savings Bank Act.
3516		-	4 "Insured savings association in recovery" means an insured
3517		-	5 savings association that is not an eligible depository
3518		-	6 institution and that does not meet the minimum capital
3519		-	7 requirements applicable with respect to the insured savings
3520		-	8 association.
3521		-	9 "Issuer" means for purposes of Section 33 every person who
3522		-	10 shall have issued or proposed to issue any security; except
3523		-	11 that (1) with respect to certificates of deposit, voting trust
3524		-	12 certificates, collateral-trust certificates, and certificates
3525		-	13 of interest or shares in an unincorporated investment trust
3526		-	14 not having a board of directors (or persons performing similar
3527		-	15 functions), "issuer" means the person or persons performing
3528		-	16 the acts and assuming the duties of depositor or manager
3529		-	17 pursuant to the provisions of the trust, agreement, or
3530		-	18 instrument under which the securities are issued; (2) with
3531		-	19 respect to trusts other than those specified in clause (1)
3532		-	20 above, where the trustee is a corporation authorized to accept
3533		-	21 and execute trusts, "issuer" means the entrusters, depositors,
3534		-	22 or creators of the trust and any manager or committee charged
3535		-	23 with the general direction of the affairs of the trust
3536		-	24 pursuant to the provisions of the agreement or instrument
3537		-	25 creating the trust; and (3) with respect to equipment trust
3538		-	26 certificates or like securities, "issuer" means the person to
3539		-
3540		-
3541		-
3542		-
3543		-
3544		-	HB0742 Engrossed - 100 - LRB104 04637 BAB 14664 b
3545		-
3546		-
3547		-	HB0742 Engrossed- 101 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 101 - LRB104 04637 BAB 14664 b
3548		-	HB0742 Engrossed - 101 - LRB104 04637 BAB 14664 b
3549		-	1 whom the equipment or property is or is to be leased or
3550		-	2 conditionally sold.
3551		-	3 "Letter of credit" and "customer" shall have the meanings
3552		-	4 ascribed to those terms in Section 5-102 of the Uniform
3553		-	5 Commercial Code.
3554		-	6 "Main banking premises" means the location that is
3555		-	7 designated in a bank's charter as its main office.
3556		-	8 "Maker or obligor" means for purposes of Section 33 the
3557		-	9 issuer of a security, the promisor in a debenture or other debt
3558		-	10 security, or the mortgagor or grantor of a trust deed or
3559		-	11 similar conveyance of a security interest in real or personal
3560		-	12 property.
3561		-	13 "Merged bank" means a merging bank that is not the
3562		-	14 continuing, resulting, or surviving bank in a consolidation or
3563		-	15 merger.
3564		-	16 "Merger" includes consolidation.
3565		-	17 "Merging bank" means a party to a bank merger.
3566		-	18 "Merging trust company" means a trust company party to a
3567		-	19 merger with a State bank.
3568		-	20 "Mid-tier bank holding company" means a corporation that
3569		-	21 (a) owns 100% of the issued and outstanding shares of each
3570		-	22 class of stock of a State bank, (b) has no other subsidiaries,
3571		-	23 and (c) 100% of the issued and outstanding shares of the
3572		-	24 corporation are owned by a parent bank holding company.
3573		-	25 "Municipality" means any municipality, political
3574		-	26 subdivision, school district, taxing district, or agency.
3575		-
3576		-
3577		-
3578		-
3579		-
3580		-	HB0742 Engrossed - 101 - LRB104 04637 BAB 14664 b
3581		-
3582		-
3583		-	HB0742 Engrossed- 102 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 102 - LRB104 04637 BAB 14664 b
3584		-	HB0742 Engrossed - 102 - LRB104 04637 BAB 14664 b
3585		-	1 "National bank" means a national banking association
3586		-	2 located in this State and after May 31, 1997, means a national
3587		-	3 banking association without regard to its location.
3588		-	4 "Out-of-state bank" means a bank chartered under the laws
3589		-	5 of a state other than Illinois, a territory of the United
3590		-	6 States, or the District of Columbia.
3591		-	7 "Parent bank holding company" means a corporation that is
3592		-	8 a bank holding company as that term is defined in the Illinois
3593		-	9 Bank Holding Company Act of 1957 and owns 100% of the issued
3594		-	10 and outstanding shares of a mid-tier bank holding company.
3595		-	11 "Person" means an individual, corporation, limited
3596		-	12 liability company, partnership, joint venture, trust, estate,
3597		-	13 or unincorporated association.
3598		-	14 "Public agency" means the State of Illinois, the various
3599		-	15 counties, townships, cities, towns, villages, school
3600		-	16 districts, educational service regions, special road
3601		-	17 districts, public water supply districts, fire protection
3602		-	18 districts, drainage districts, levee districts, sewer
3603		-	19 districts, housing authorities, the Illinois Bank Examiners'
3604		-	20 Education Foundation, the Chicago Park District, and all other
3605		-	21 political corporations or subdivisions of the State of
3606		-	22 Illinois, whether now or hereafter created, whether herein
3607		-	23 specifically mentioned or not, and shall also include any
3608		-	24 other state or any political corporation or subdivision of
3609		-	25 another state.
3610		-	26 "Public funds" or "public money" means current operating
3611		-
3612		-
3613		-
3614		-
3615		-
3616		-	HB0742 Engrossed - 102 - LRB104 04637 BAB 14664 b
3617		-
3618		-
3619		-	HB0742 Engrossed- 103 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 103 - LRB104 04637 BAB 14664 b
3620		-	HB0742 Engrossed - 103 - LRB104 04637 BAB 14664 b
3621		-	1 funds, special funds, interest and sinking funds, and funds of
3622		-	2 any kind or character belonging to, in the custody of, or
3623		-	3 subject to the control or regulation of the United States or a
3624		-	4 public agency. "Public funds" or "public money" shall include
3625		-	5 funds held by any of the officers, agents, or employees of the
3626		-	6 United States or of a public agency in the course of their
3627		-	7 official duties and, with respect to public money of the
3628		-	8 United States, shall include Postal Savings funds.
3629		-	9 "Published" means, unless the context requires otherwise,
3630		-	10 the publishing of the notice or instrument referred to in some
3631		-	11 newspaper of general circulation in the community in which the
3632		-	12 bank is located at least once each week for 3 successive weeks.
3633		-	13 Publishing shall be accomplished by, and at the expense of,
3634		-	14 the bank required to publish. Where publishing is required,
3635		-	15 the bank shall submit to the Commissioner that evidence of the
3636		-	16 publication as the Commissioner shall deem appropriate.
3637		-	17 "Qualified financial contract" means any security
3638		-	18 contract, commodity contract, forward contract, including spot
3639		-	19 and forward foreign exchange contracts, repurchase agreement,
3640		-	20 swap agreement, and any similar agreement, any option to enter
3641		-	21 into any such agreement, including any combination of the
3642		-	22 foregoing, and any master agreement for such agreements. A
3643		-	23 master agreement, together with all supplements thereto, shall
3644		-	24 be treated as one qualified financial contract. The contract,
3645		-	25 option, agreement, or combination of contracts, options, or
3646		-	26 agreements shall be reflected upon the books, accounts, or
3647		-
3648		-
3649		-
3650		-
3651		-
3652		-	HB0742 Engrossed - 103 - LRB104 04637 BAB 14664 b
3653		-
3654		-
3655		-	HB0742 Engrossed- 104 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 104 - LRB104 04637 BAB 14664 b
3656		-	HB0742 Engrossed - 104 - LRB104 04637 BAB 14664 b
3657		-	1 records of the bank, or a party to the contract shall provide
3658		-	2 documentary evidence of such agreement.
3659		-	3 "Recorded" means the filing or recording of the notice or
3660		-	4 instrument referred to in the office of the Recorder of the
3661		-	5 county wherein the bank is located.
3662		-	6 "Resulting bank" means the bank resulting from a merger or
3663		-	7 conversion.
3664		-	8 "Secretary" means the Secretary of Financial and
3665		-	9 Professional Regulation, or a person authorized by the
3666		-	10 Secretary or by this Act to act in the Secretary's stead.
3667		-	11 "Securities" means stocks, bonds, debentures, notes, or
3668		-	12 other similar obligations.
3669		-	13 "Special purpose trust company" means a special purpose
3670		-	14 trust company under Article IIA of the Corporate Fiduciary
3671		-	15 Act.
3672		-	16 "Stand-by letter of credit" means a letter of credit under
3673		-	17 which drafts are payable upon the condition the customer has
3674		-	18 defaulted in performance of a duty, liability, or obligation.
3675		-	19 "State bank" means any banking corporation that has a
3676		-	20 banking charter issued by the Commissioner under this Act.
3677		-	21 "State Banking Board" means the State Banking Board of
3678		-	22 Illinois.
3679		-	23 "Subsidiary" with respect to a specified company means a
3680		-	24 company that is controlled by the specified company. For
3681		-	25 purposes of paragraphs (8) and (12) of Section 5 of this Act,
3682		-	26 "control" means the exercise of operational or managerial
3683		-
3684		-
3685		-
3686		-
3687		-
3688		-	HB0742 Engrossed - 104 - LRB104 04637 BAB 14664 b
3689		-
3690		-
3691		-	HB0742 Engrossed- 105 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 105 - LRB104 04637 BAB 14664 b
3692		-	HB0742 Engrossed - 105 - LRB104 04637 BAB 14664 b
3693		-	1 control of a corporation by the bank, either alone or together
3694		-	2 with other affiliates of the bank.
3695		-	3 "Surplus" means the aggregate of (i) amounts paid in
3696		-	4 excess of the par value of capital stock and preferred stock;
3697		-	5 (ii) amounts contributed other than for capital stock and
3698		-	6 preferred stock and allocated to the surplus account; and
3699		-	7 (iii) amounts transferred from undivided profits.
3700		-	8 "Tier 1 Capital" and "Tier 2 Capital" have the meanings
3701		-	9 assigned to those terms in regulations promulgated for the
3702		-	10 appropriate federal banking agency of a state bank, as those
3703		-	11 regulations are now or hereafter amended.
3704		-	12 "Trust company" means a limited liability company or
3705		-	13 corporation incorporated in this State for the purpose of
3706		-	14 accepting and executing trusts.
3707		-	15 "Undivided profits" means undistributed earnings less
3708		-	16 discretionary transfers to surplus.
3709		-	17 "Unimpaired capital and unimpaired surplus", for the
3710		-	18 purposes of paragraph (21) of Section 5 and Sections 32, 33,
3711		-	19 34, 35.1, 35.2, and 47 of this Act means the sum of the state
3712		-	20 bank's Tier 1 Capital and Tier 2 Capital plus such other
3713		-	21 shareholder equity as may be included by regulation of the
3714		-	22 Commissioner. Unimpaired capital and unimpaired surplus shall
3715		-	23 be calculated on the basis of the date of the last quarterly
3716		-	24 call report filed with the Commissioner preceding the date of
3717		-	25 the transaction for which the calculation is made, provided
3718		-	26 that: (i) when a material event occurs after the date of the
3719		-
3720		-
3721		-
3722		-
3723		-
3724		-	HB0742 Engrossed - 105 - LRB104 04637 BAB 14664 b
3725		-
3726		-
3727		-	HB0742 Engrossed- 106 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 106 - LRB104 04637 BAB 14664 b
3728		-	HB0742 Engrossed - 106 - LRB104 04637 BAB 14664 b
3729		-	1 last quarterly call report filed with the Commissioner that
3730		-	2 reduces or increases the bank's unimpaired capital and
3731		-	3 unimpaired surplus by 10% or more, then the unimpaired capital
3732		-	4 and unimpaired surplus shall be calculated from the date of
3733		-	5 the material event for a transaction conducted after the date
3734		-	6 of the material event; and (ii) if the Commissioner determines
3735		-	7 for safety and soundness reasons that a state bank should
3736		-	8 calculate unimpaired capital and unimpaired surplus more
3737		-	9 frequently than provided by this paragraph, the Commissioner
3738		-	10 may by written notice direct the bank to calculate unimpaired
3739		-	11 capital and unimpaired surplus at a more frequent interval. In
3740		-	12 the case of a state bank newly chartered under Section 13 or a
3741		-	13 state bank resulting from a merger, consolidation, or
3742		-	14 conversion under Sections 21 through 26 for which no preceding
3743		-	15 quarterly call report has been filed with the Commissioner,
3744		-	16 unimpaired capital and unimpaired surplus shall be calculated
3745		-	17 for the first calendar quarter on the basis of the effective
3746		-	18 date of the charter, merger, consolidation, or conversion.
3747		-	19 (Source: P.A. 95-924, eff. 8-26-08; 95-1047, eff. 4-6-09;
3748		-	20 96-1000, eff. 7-2-10; 96-1163, eff. 1-1-11; revised 8-6-24.)
3749		-	21 (205 ILCS 5/30) (from Ch. 17, par. 337)
3750		-	22 Sec. 30. Conversion; merger with trust company or special
3751		-	23 purpose trust company. Upon approval by the Commissioner a
3752		-	24 trust company having power so to do under the law under which
3753		-	25 it is organized may convert into a state bank or may merge into
3754		-
3755		-
3756		-
3757		-
3758		-
3759		-	HB0742 Engrossed - 106 - LRB104 04637 BAB 14664 b
3760		-
3761		-
3762		-	HB0742 Engrossed- 107 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 107 - LRB104 04637 BAB 14664 b
3763		-	HB0742 Engrossed - 107 - LRB104 04637 BAB 14664 b
3764		-	1 a state bank as prescribed by this Act; except that the action
3765		-	2 by a trust company shall be taken in the manner prescribed by
3766		-	3 and shall be subject to limitations and requirements imposed
3767		-	4 by the law under which it is organized which law shall also
3768		-	5 govern the rights of its dissenting stockholders. The rights
3769		-	6 of dissenting stockholders of a state bank shall be governed
3770		-	7 by Section 29 of this Act. The conversion or merger procedure
3771		-	8 shall be:
3772		-	9 (1) In the case of a merger, the board of directors of both
3773		-	10 the merging trust company and the merging bank by a majority of
3774		-	11 the entire board in each case shall approve a merger agreement
3775		-	12 which shall contain:
3776		-	13 (a) The name and location of the merging bank and of
3777		-	14 the merging trust company and a list of the stockholders
3778		-	15 of each as of the date of the merger agreement;
3779		-	16 (b) With respect to the resulting bank (i) its name
3780		-	17 and place of business; (ii) the amount of capital, surplus
3781		-	18 and reserve for operating expenses; (iii) the classes and
3782		-	19 the number of shares of stock and the par value of each
3783		-	20 share; (iv) the charter which is to be the charter of the
3784		-	21 resulting bank, together with the amendments to the
3785		-	22 continuing charter and to the continuing by-laws; and (v)
3786		-	23 a detailed financial statement showing the assets and
3787		-	24 liabilities after the proposed merger;
3788		-	25 (c) Provisions governing the manner of converting the
3789		-	26 shares of the merging bank and of the merging trust
3790		-
3791		-
3792		-
3793		-
3794		-
3795		-	HB0742 Engrossed - 107 - LRB104 04637 BAB 14664 b
3796		-
3797		-
3798		-	HB0742 Engrossed- 108 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 108 - LRB104 04637 BAB 14664 b
3799		-	HB0742 Engrossed - 108 - LRB104 04637 BAB 14664 b
3800		-	1 company into shares of the resulting bank;
3801		-	2 (d) A statement that the merger agreement is subject
3802		-	3 to approval by the Commissioner and by the stockholders of
3803		-	4 the merging bank and the merging trust company, and that
3804		-	5 whether approved or disapproved, the parties thereto will
3805		-	6 pay the Commissioner's expenses of examination;
3806		-	7 (e) Provisions governing the manner of disposing of
3807		-	8 the shares of the resulting bank not taken by the
3808		-	9 dissenting stockholders of the merging trust company; and
3809		-	10 (f) Such other provisions as the Commissioner may
3810		-	11 reasonably require to enable him to discharge his duties
3811		-	12 with respect to the merger.
3812		-	13 (2) After approval by the board of directors of the
3813		-	14 merging bank and of the merging trust company, the merger
3814		-	15 agreement shall be submitted to the Commissioner for approval
3815		-	16 together with the certified copies of the authorizing
3816		-	17 resolution of each board of directors showing approval by a
3817		-	18 majority of each board.
3818		-	19 (3) After receipt by the Commissioner of the papers
3819		-	20 specified in subsection (2), he shall approve or disapprove
3820		-	21 the merger agreement. The Commissioner shall not approve the
3821		-	22 agreement unless he shall be of the opinion and finds:
3822		-	23 (a) That the resulting bank meets the requirements of
3823		-	24 this Act for the formation of a new bank at the proposed
3824		-	25 place of business of the resulting bank;
3825		-	26 (b) That the same matters exist in respect of the
3826		-
3827		-
3828		-
3829		-
3830		-
3831		-	HB0742 Engrossed - 108 - LRB104 04637 BAB 14664 b
3832		-
3833		-
3834		-	HB0742 Engrossed- 109 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 109 - LRB104 04637 BAB 14664 b
3835		-	HB0742 Engrossed - 109 - LRB104 04637 BAB 14664 b
3836		-	1 resulting bank which would have been required under
3837		-	2 Section 10 of this Act for the organization of a new bank;
3838		-	3 and
3839		-	4 (c) That the merger agreement is fair to all persons
3840		-	5 affected. If the Commissioner disapproves the merger
3841		-	6 agreement, he shall state his objections in writing and
3842		-	7 give an opportunity to the merging bank and the merging
3843		-	8 trust company to obviate such objections.
3844		-	9 (4) To be effective, if approved by the Commissioner, a
3845		-	10 merger of a bank and a trust company where there is to be a
3846		-	11 resulting bank must be approved by the affirmative vote of the
3847		-	12 holders of at least two-thirds of the outstanding shares of
3848		-	13 stock of the merging bank entitled to vote at a meeting called
3849		-	14 to consider such action, unless holders of preferred stock are
3850		-	15 entitled to vote as a class in respect thereof, in which event
3851		-	16 the proposed merger shall be adopted upon receiving the
3852		-	17 affirmative vote of the holders of at least two-thirds of the
3853		-	18 outstanding shares of each class of shares entitled to vote as
3854		-	19 a class in respect thereof and of the total outstanding shares
3855		-	20 entitled to vote at such meeting and must be approved by the
3856		-	21 stockholders of the merging trust company as provided by the
3857		-	22 Act under which it is organized. The prescribed vote by the
3858		-	23 merging bank and the merging trust company shall constitute
3859		-	24 the adoption of the charter and by-laws of the continuing
3860		-	25 bank, including the amendments in the merger agreement, as the
3861		-	26 charter and by-laws of the resulting bank. Written or printed
3862		-
3863		-
3864		-
3865		-
3866		-
3867		-	HB0742 Engrossed - 109 - LRB104 04637 BAB 14664 b
3868		-
3869		-
3870		-	HB0742 Engrossed- 110 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 110 - LRB104 04637 BAB 14664 b
3871		-	HB0742 Engrossed - 110 - LRB104 04637 BAB 14664 b
3872		-	1 notice of the meeting of the stockholders of the merging bank
3873		-	2 shall be given to each stockholder of record entitled to vote
3874		-	3 at such meeting at least thirty days before such meeting and in
3875		-	4 the manner provided in this Act for the giving of notice of
3876		-	5 meetings of stockholders. The notice shall state that
3877		-	6 dissenting stockholders of the merging trust company will be
3878		-	7 entitled to payment of the value of those shares which are
3879		-	8 voted against approval of the merger, if a proper demand is
3880		-	9 made on the resulting bank and the requirements of the Act
3881		-	10 under which the merging trust company is organized are
3882		-	11 satisfied.
3883		-	12 (5) Unless a later date is specified in the merger
3884		-	13 agreement, the merger shall become effective upon the filing
3885		-	14 with the Commissioner of the executed merger agreement,
3886		-	15 together with copies of the resolutions of the stockholders of
3887		-	16 the merging bank and the merging trust company approving it,
3888		-	17 certified by the president or a vice-president or, the cashier
3889		-	18 and also by the secretary or other officer charged with
3890		-	19 keeping the records. The charter of the merging trust company
3891		-	20 shall thereupon automatically terminate. The Commissioner
3892		-	21 shall thereupon issue to the continuing bank a certificate of
3893		-	22 merger which shall specify the name of the merging trust
3894		-	23 company, the name of the continuing bank and the amendments to
3895		-	24 the charter of the continuing bank provided for by the merger
3896		-	25 agreement. Such certificate shall be conclusive evidence of
3897		-	26 the merger and of the correctness of all proceedings therefor
3898		-
3899		-
3900		-
3901		-
3902		-
3903		-	HB0742 Engrossed - 110 - LRB104 04637 BAB 14664 b
3904		-
3905		-
3906		-	HB0742 Engrossed- 111 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 111 - LRB104 04637 BAB 14664 b
3907		-	HB0742 Engrossed - 111 - LRB104 04637 BAB 14664 b
3908		-	1 in all courts and places including the office of the Secretary
3909		-	2 of State, and said certificate shall be recorded.
3910		-	3 (6) In the case of a conversion, a trust company shall
3911		-	4 apply for a charter by filing with the Commissioner:
3912		-	5 (a) A certificate signed by its president, or a
3913		-	6 vice-president, and by a majority of the entire board of
3914		-	7 directors setting forth the corporate action taken in
3915		-	8 compliance with the provisions of the Act under which it
3916		-	9 is organized governing the conversion of a trust company
3917		-	10 to a bank or governing the merger of a trust company into
3918		-	11 another corporation;
3919		-	12 (b) The plan of conversion and the proposed charter
3920		-	13 approved by the stockholders for the operation of the
3921		-	14 trust company as a bank. The plan of conversion shall
3922		-	15 contain (i) the name and location proposed for the
3923		-	16 converting trust company; (ii) a list of its stockholders
3924		-	17 as of the date of the stockholders' approval of the plan of
3925		-	18 conversion; (iii) the amount of its capital, surplus and
3926		-	19 reserve for operating expenses; (iv) the classes and the
3927		-	20 number of shares of stock and the par value of each share;
3928		-	21 (v) the charter which is to be the charter of the resulting
3929		-	22 bank; and (vi) a detailed financial statement showing the
3930		-	23 assets and liabilities of the converting trust company;
3931		-	24 (c) A statement that the plan of conversion is subject
3932		-	25 to approval by the Commissioner and that, whether approved
3933		-	26 or disapproved, the converting trust company will pay the
3934		-
3935		-
3936		-
3937		-
3938		-
3939		-	HB0742 Engrossed - 111 - LRB104 04637 BAB 14664 b
3940		-
3941		-
3942		-	HB0742 Engrossed- 112 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 112 - LRB104 04637 BAB 14664 b
3943		-	HB0742 Engrossed - 112 - LRB104 04637 BAB 14664 b
3944		-	1 Commissioner's expenses of examination; and
3945		-	2 (d) Such other instruments as the Commissioner may
3946		-	3 reasonably require to enable him to discharge his duties
3947		-	4 with respect to the conversion.
3948		-	5 (7) After receipt by the Commissioner of the papers
3949		-	6 specified in subsection (6), he shall approve or disapprove
3950		-	7 the plan of conversion. The Commissioner shall not approve the
3951		-	8 plan of conversion unless he shall be of the opinion and finds:
3952		-	9 (a) That the resulting bank meets the requirements of
3953		-	10 this Act for the formation of a new bank at the proposed
3954		-	11 place of business of the resulting bank;
3955		-	12 (b) That the same matters exist in respect of the
3956		-	13 resulting bank which would have been required under
3957		-	14 Section 10 of this Act for the organization of a new bank;
3958		-	15 and
3959		-	16 (c) That the plan of conversion is fair to all persons
3960		-	17 affected.
3961		-	18 If the commissioner disapproves the plan of conversion, he
3962		-	19 shall state his objections in writing and give an opportunity
3963		-	20 to the converting trust company to obviate such objections.
3964		-	21 (8) Unless a later date is specified in the plan of
3965		-	22 conversion, the conversion shall become effective upon the
3966		-	23 Commissioner's approval, and the charter proposed in the plan
3967		-	24 of conversion shall constitute the charter of the resulting
3968		-	25 bank. The Commissioner shall issue a certificate of conversion
3969		-	26 which shall specify the name of the converting trust company,
3970		-
3971		-
3972		-
3973		-
3974		-
3975		-	HB0742 Engrossed - 112 - LRB104 04637 BAB 14664 b
3976		-
3977		-
3978		-	HB0742 Engrossed- 113 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 113 - LRB104 04637 BAB 14664 b
3979		-	HB0742 Engrossed - 113 - LRB104 04637 BAB 14664 b
3980		-	1 the name of the resulting bank and the charter provided for by
3981		-	2 said plan of conversion. Such certificate shall be conclusive
3982		-	3 evidence of the conversion and of the correctness of all
3983		-	4 proceedings therefor in all courts and places including the
3984		-	5 office of the Secretary of State, and such certificate shall
3985		-	6 be recorded.
3986		-	7 (8.5) A special purpose trust company under Article IIA of
3987		-	8 the Corporate Fiduciary Act may merge with a State bank or
3988		-	9 convert to a State bank as if the special purpose trust company
3989		-	10 were a trust company under Article II of the Corporate
3990		-	11 Fiduciary Act, subject to rules adopted by the Department.
3991		-	12 (9) In the case of either a merger or a conversion under
3992		-	13 this Section 30, the resulting bank shall be considered the
3993		-	14 same business and corporate entity as each merging bank and
3994		-	15 merging trust company or as the converting trust company with
3995		-	16 all the property, rights, powers, duties and obligations of
3996		-	17 each as specified in Section 28 of this Act.
3997		-	18 (Source: P.A. 91-357, eff. 7-29-99.)
3998		-	19 Section 90-20. The Corporate Fiduciary Act is amended by
3999		-	20 changing Sections 1-5.08, 2-1, 4-1, 4-2, 4-5, 4A-15, and 5-1
4000		-	21 and by adding Article IIA as follows:
4001		-	22 (205 ILCS 620/1-5.08) (from Ch. 17, par. 1551-5.08)
4002		-	23 Sec. 1-5.08. "Foreign corporation" means:
4003		-	24 (a) any bank, savings and loan association, savings bank,
4004		-
4005		-
4006		-
4007		-
4008		-
4009		-	HB0742 Engrossed - 113 - LRB104 04637 BAB 14664 b
4010		-
4011		-
4012		-	HB0742 Engrossed- 114 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 114 - LRB104 04637 BAB 14664 b
4013		-	HB0742 Engrossed - 114 - LRB104 04637 BAB 14664 b
4014		-	1 or other corporation, limited liability company, or other
4015		-	2 entity now or hereafter organized under the laws of any state
4016		-	3 or territory of the United States of America, including the
4017		-	4 District of Columbia, other than the State of Illinois;
4018		-	5 (b) any national banking association having its principal
4019		-	6 place of business in any state or territory of the United
4020		-	7 States of America, including the District of Columbia, other
4021		-	8 than the State of Illinois; and
4022		-	9 (c) any federal savings and loan association or federal
4023		-	10 savings bank having its principal place of business in any
4024		-	11 state or territory of the United States of America, including
4025		-	12 the District of Columbia, other than the State of Illinois.
4026		-	13 (Source: P.A. 91-97, eff. 7-9-99.)
4027		-	14 (205 ILCS 620/2-1) (from Ch. 17, par. 1552-1)
4028		-	15 Sec. 2-1. (a) Any corporation which has been or shall be
4029		-	16 incorporated under the general corporation laws of this State
4030		-	17 and any limited liability company established under the
4031		-	18 Limited Liability Company Act for the purpose of accepting and
4032		-	19 executing trusts, and any state bank, state savings and loan
4033		-	20 association, state savings bank, or other special corporation
4034		-	21 now or hereafter authorized by law to accept or execute
4035		-	22 trusts, may be appointed to act as a fiduciary in any capacity
4036		-	23 a natural person or corporation may act, and shall include,
4037		-	24 but not be limited to, acting as assignee or trustee by deed,
4038		-	25 and executor, guardian or trustee by will, custodian under the
4039		-
4040		-
4041		-
4042		-
4043		-
4044		-	HB0742 Engrossed - 114 - LRB104 04637 BAB 14664 b
4045		-
4046		-
4047		-	HB0742 Engrossed- 115 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 115 - LRB104 04637 BAB 14664 b
4048		-	HB0742 Engrossed - 115 - LRB104 04637 BAB 14664 b
4049		-	1 Illinois Uniform Transfers to Minors Act and such appointment
4050		-	2 shall be of like force as in case of appointment of a natural
4051		-	3 person and shall be designated a corporate fiduciary.
4052		-	4 (b) No corporate fiduciary shall dissolve or cease its
4053		-	5 corporate existence without prior notice to and approval by
4054		-	6 the Commissioner and compliance with the requirements of
4055		-	7 Section 7-1 of this Act.
4056		-	8 (Source: P.A. 100-863, eff. 8-14-18.)
4057		-	9 (205 ILCS 620/Art. IIA heading new)
4058		-	10 ARTICLE IIA. SPECIAL PURPOSE TRUST COMPANY
4059		-	11 AUTHORITY AND ORGANIZATION
4060		-	12 (205 ILCS 620/2A-1 new)
4061		-	13 Sec. 2A-1. Purpose. The General Assembly finds that
4062		-	14 corporate fiduciaries perform a vital service in the custody,
4063		-	15 safekeeping, and management of physical assets, traditional
4064		-	16 electronic assets, and emerging digital assets for customers;
4065		-	17 that it is in the public interest that trust companies may be
4066		-	18 organized for the special purpose of providing fiduciary
4067		-	19 custodial services and related services to customers; that the
4068		-	20 operation of special purpose trust companies is impressed with
4069		-	21 a public interest such that it should be supervised as an
4070		-	22 activity under this Act; and that such special purpose trust
4071		-	23 companies should obtain their authority, conduct their
4072		-	24 operations, and be supervised as corporate fiduciaries as
4073		-
4074		-
4075		-
4076		-
4077		-
4078		-	HB0742 Engrossed - 115 - LRB104 04637 BAB 14664 b
4079		-
4080		-
4081		-	HB0742 Engrossed- 116 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 116 - LRB104 04637 BAB 14664 b
4082		-	HB0742 Engrossed - 116 - LRB104 04637 BAB 14664 b
4083		-	1 provided in this Act.
4084		-	2 (205 ILCS 620/2A-2 new)
4085		-	3 Sec. 2A-2. Special purpose trust company. Any corporation
4086		-	4 that has been or shall be incorporated under the general
4087		-	5 corporation laws of this State and any limited liability
4088		-	6 company established under the Limited Liability Company Act
4089		-	7 for the special purpose of providing fiduciary custodial
4090		-	8 services or providing other like or related services as
4091		-	9 specified by rule, consistent with this Article, may be
4092		-	10 appointed to act as a fiduciary with respect to such services
4093		-	11 and shall be designated a special purpose trust company.
4094		-	12 (205 ILCS 620/2A-3 new)
4095		-	13 Sec. 2A-3. Certificate of authority.
4096		-	14 (a) It shall be lawful for any person to engage in the
4097		-	15 activity of a special purpose trust company after the
4098		-	16 effective date of this amendatory Act of the 104th General
4099		-	17 Assembly upon filing an application for and procuring from the
4100		-	18 Secretary a certificate of authority stating that the person
4101		-	19 has complied with the requirements of this Act and is
4102		-	20 qualified to engage in the activity of a special purpose trust
4103		-	21 company.
4104		-	22 (b) No natural person or natural persons, firm,
4105		-	23 partnership, or corporation not having been authorized under
4106		-	24 this Act shall transact in the activity of a special purpose
4107		-
4108		-
4109		-
4110		-
4111		-
4112		-	HB0742 Engrossed - 116 - LRB104 04637 BAB 14664 b
4113		-
4114		-
4115		-	HB0742 Engrossed- 117 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 117 - LRB104 04637 BAB 14664 b
4116		-	HB0742 Engrossed - 117 - LRB104 04637 BAB 14664 b
4117		-	1 trust company. A person who violates this Section is guilty of
4118		-	2 a Class A misdemeanor and the Attorney General or State's
4119		-	3 Attorney of the county in which the violation occurs may
4120		-	4 restrain the violation by a complaint for injunctive relief.
4121		-	5 (c) Any entity that holds a certificate of authority under
4122		-	6 Article II of this Act may engage in the activity of a special
4123		-	7 purpose trust company without applying for or receiving a
4124		-	8 certificate of authority under this Article IIA.
4125		-	9 (d) Nothing in this Section shall limit the authority of a
4126		-	10 depository institution to provide nonfiduciary custodial
4127		-	11 services consistent with its charter in accordance with
4128		-	12 applicable law and subject to any limitations and restrictions
4129		-	13 imposed by its chartering authority.
4130		-	14 (205 ILCS 620/2A-4 new)
4131		-	15 Sec. 2A-4. Rulemaking and organization.
4132		-	16 (a) The Department shall adopt rules for the
4133		-	17 administration of this Article, including, but not limited to:
4134		-	18 rules for defining statutory terms; applying for a certificate
4135		-	19 of authority; review, investigation, and approval of
4136		-	20 application for certificate of authority; capital
4137		-	21 requirements; office location and name; collateralizing
4138		-	22 fiduciary assets; and general corporate powers. The authority
4139		-	23 of this subsection (a) is in addition to, and in no way limits,
4140		-	24 the authority of the Secretary under subsection (a) of Section
4141		-	25 5-1.
4142		-
4143		-
4144		-
4145		-
4146		-
4147		-	HB0742 Engrossed - 117 - LRB104 04637 BAB 14664 b
4148		-
4149		-
4150		-	HB0742 Engrossed- 118 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 118 - LRB104 04637 BAB 14664 b
4151		-	HB0742 Engrossed - 118 - LRB104 04637 BAB 14664 b
4152		-	1 (b) Articles III, V, VI, VII, VIII, and IX of this Act
4153		-	2 shall apply to a special purpose trust company under this
4154		-	3 Article as if the special purpose trust company were a trust
4155		-	4 company authorized under Article II of this Act, subject to
4156		-	5 any rules adopted by the Department.
4157		-	6 (205 ILCS 620/4-1) (from Ch. 17, par. 1554-1)
4158		-	7 Sec. 4-1. Foreign corporate fiduciary; certificate of
4159		-	8 authority. After July 13, 1953, no foreign corporation,
4160		-	9 including banks, savings banks, and savings and loan
4161		-	10 associations, now or hereafter organized under the laws of any
4162		-	11 other state or territory, and no national banking association
4163		-	12 having its principal place of business in any other state or
4164		-	13 territory or federal savings and loan association or federal
4165		-	14 savings bank having its principal place of business in any
4166		-	15 other state or territory, may procure a certificate of
4167		-	16 authority under Article II of this Act and any certificate of
4168		-	17 authority heretofore issued hereunder to any such foreign
4169		-	18 corporation or to any such national banking association shall
4170		-	19 become null and void on July 13, 1953, except that any such
4171		-	20 foreign corporation or any such national banking association
4172		-	21 actually acting as trustee, executor, administrator,
4173		-	22 administrator to collect, guardian, or in any other like
4174		-	23 fiduciary capacity in this State on July 13, 1953, may
4175		-	24 continue to act as such fiduciary in that particular trust or
4176		-	25 estate until such time as it has completed its duties
4177		-
4178		-
4179		-
4180		-
4181		-
4182		-	HB0742 Engrossed - 118 - LRB104 04637 BAB 14664 b
4183		-
4184		-
4185		-	HB0742 Engrossed- 119 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 119 - LRB104 04637 BAB 14664 b
4186		-	HB0742 Engrossed - 119 - LRB104 04637 BAB 14664 b
4187		-	1 thereunder. Such foreign corporation and such national banking
4188		-	2 association shall be subject to the provisions in this Article
4189		-	3 IV, regardless of whether its certificate of authority was
4190		-	4 obtained before July 13, 1953. The right and eligibility of
4191		-	5 any foreign corporation, any national banking association
4192		-	6 having its principal place of business in any other state or
4193		-	7 territory or any federal savings and loan association or
4194		-	8 federal savings bank having its principal place of business in
4195		-	9 any other state or territory hereafter to act as trustee,
4196		-	10 executor, administrator, administrator to collect, guardian,
4197		-	11 or in any other like fiduciary capacity in this State shall be
4198		-	12 governed solely by the provisions of this Act. Provided,
4199		-	13 however, that the Commissioner shall not be required to
4200		-	14 conduct an annual examination of such foreign corporation
4201		-	15 pursuant to Section 5-2 of this Act, but may examine such
4202		-	16 foreign corporation as the Commissioner deems appropriate.
4203		-	17 "Principal place of business" of any bank, federal savings and
4204		-	18 loan association or savings bank, for purposes of this Article
4205		-	19 IV, means the principal office as designated on the charter by
4206		-	20 its principal regulator.
4207		-	21 (Source: P.A. 91-97, eff. 7-9-99.)
4208		-	22 (205 ILCS 620/4-2) (from Ch. 17, par. 1554-2)
4209		-	23 Sec. 4-2. Foreign corporation; eligibility. Any foreign
4210		-	24 corporation may act in this State as trustee, executor,
4211		-	25 administrator, administrator to collect, guardian, or in any
4212		-
4213		-
4214		-
4215		-
4216		-
4217		-	HB0742 Engrossed - 119 - LRB104 04637 BAB 14664 b
4218		-
4219		-
4220		-	HB0742 Engrossed- 120 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 120 - LRB104 04637 BAB 14664 b
4221		-	HB0742 Engrossed - 120 - LRB104 04637 BAB 14664 b
4222		-	1 other like fiduciary capacity, whether the appointment is by
4223		-	2 will, deed, court order or otherwise, without complying with
4224		-	3 any laws of this State relating to the qualification of
4225		-	4 corporations organized under the laws of this State to conduct
4226		-	5 a trust business or laws relating to the qualification of
4227		-	6 foreign corporations, provided only (1) such foreign
4228		-	7 corporation is authorized by the laws of the state of its
4229		-	8 organization or domicile to act as a fiduciary in that state,
4230		-	9 and (2) a corporation organized under the laws of this State, a
4231		-	10 national banking association having its principal place of
4232		-	11 business in this State, and a federal savings and loan
4233		-	12 association or federal savings bank having its principal place
4234		-	13 of business in this State and authorized to act as a fiduciary
4235		-	14 in this State, may, in such other state, act in a similar
4236		-	15 fiduciary capacity or capacities, as the case may be, upon
4237		-	16 conditions and qualifications which the Commissioner finds are
4238		-	17 not unduly restrictive when compared to those imposed by the
4239		-	18 laws of Illinois. Any foreign corporation eligible to act in a
4240		-	19 fiduciary capacity in this State pursuant to the provisions of
4241		-	20 this Act, shall be deemed qualified to accept and execute
4242		-	21 trusts in this State within the meaning of this Act and the
4243		-	22 Probate Act of 1975, approved August 7, 1975, as amended. No
4244		-	23 foreign corporation shall be permitted to act as trustee,
4245		-	24 executor, administrator, administrator to collect, guardian or
4246		-	25 in any other like fiduciary capacity in this State except as
4247		-	26 provided in Article IV of this Act; however, any foreign
4248		-
4249		-
4250		-
4251		-
4252		-
4253		-	HB0742 Engrossed - 120 - LRB104 04637 BAB 14664 b
4254		-
4255		-
4256		-	HB0742 Engrossed- 121 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 121 - LRB104 04637 BAB 14664 b
4257		-	HB0742 Engrossed - 121 - LRB104 04637 BAB 14664 b
4258		-	1 corporation actually acting in any such fiduciary capacity in
4259		-	2 this State on July 13, 1953, although not eligible to so act
4260		-	3 pursuant to the provisions of this Article IV, may continue to
4261		-	4 act as fiduciary in that particular trust or estate until such
4262		-	5 time as it has completed its duties thereunder.
4263		-	6 (Source: P.A. 92-685, eff. 7-16-02.)
4264		-	7 (205 ILCS 620/4-5) (from Ch. 17, par. 1554-5)
4265		-	8 Sec. 4-5. Certificate of authority; fees; certificate of
4266		-	9 reciprocity.
4267		-	10 (a) Prior to the time any foreign corporation acts in this
4268		-	11 State as testamentary trustee, trustee appointed by any court,
4269		-	12 trustee under any written agreement, declaration or instrument
4270		-	13 of trust, executor, administrator, administrator to collect,
4271		-	14 guardian or in any other like fiduciary capacity, such foreign
4272		-	15 corporation shall apply to the Commissioner of Banks and Real
4273		-	16 Estate for a certificate of authority with reference to the
4274		-	17 fiduciary capacity or capacities in which such foreign
4275		-	18 corporation proposes to act in this State, and the
4276		-	19 Commissioner of Banks and Real Estate shall issue a
4277		-	20 certificate of authority to such corporation concerning only
4278		-	21 the fiduciary capacity or such of the fiduciary capacities to
4279		-	22 which the application pertains and with respect to which he
4280		-	23 has been furnished satisfactory evidence that such foreign
4281		-	24 corporation meets the requirements of Section 4-2 of this Act.
4282		-	25 The certificate of authority shall set forth the fiduciary
4283		-
4284		-
4285		-
4286		-
4287		-
4288		-	HB0742 Engrossed - 121 - LRB104 04637 BAB 14664 b
4289		-
4290		-
4291		-	HB0742 Engrossed- 122 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 122 - LRB104 04637 BAB 14664 b
4292		-	HB0742 Engrossed - 122 - LRB104 04637 BAB 14664 b
4293		-	1 capacity or capacities, as the case may be, for which the
4294		-	2 certificate is issued, and shall recite and certify that such
4295		-	3 foreign corporation is eligible to act in this State in such
4296		-	4 fiduciary capacity or capacities, as the case may be, pursuant
4297		-	5 to the provisions of this Act. The certificate of authority
4298		-	6 shall remain in full force and effect until such time as such
4299		-	7 foreign corporation ceases to be eligible so to act under the
4300		-	8 provisions of this Act.
4301		-	9 (b) Each foreign corporation making application for a
4302		-	10 certificate of authority shall pay reasonable fees to the
4303		-	11 Commissioner of Banks and Real Estate as determined by the
4304		-	12 Commissioner for the services of his office.
4305		-	13 (c) Any foreign corporation holding a certificate of
4306		-	14 reciprocity which recites and certifies that such foreign
4307		-	15 corporation is eligible to act in this State in any such
4308		-	16 fiduciary capacity pursuant to the provisions of Article IV of
4309		-	17 this Act or any predecessor Act upon the same subject, issued
4310		-	18 prior to the effective date of this amendatory Act of 1987 may
4311		-	19 act in this State under such certificate of reciprocity in any
4312		-	20 such fiduciary capacity without applying for a new certificate
4313		-	21 of authority. Such certificate of reciprocity shall remain in
4314		-	22 full force and effect until such time as such foreign
4315		-	23 corporation ceases to be eligible so to act under the
4316		-	24 provisions of Article IV of this Act.
4317		-	25 (d) Any foreign corporation acting in Illinois under a
4318		-	26 certificate of authority or a certificate of reciprocity shall
4319		-
4320		-
4321		-
4322		-
4323		-
4324		-	HB0742 Engrossed - 122 - LRB104 04637 BAB 14664 b
4325		-
4326		-
4327		-	HB0742 Engrossed- 123 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 123 - LRB104 04637 BAB 14664 b
4328		-	HB0742 Engrossed - 123 - LRB104 04637 BAB 14664 b
4329		-	1 report changes in its name or address to the Commissioner and
4330		-	2 shall notify the Commissioner when it is no longer serving as a
4331		-	3 corporate fiduciary in Illinois.
4332		-	4 (e) The provisions of this Section shall not apply to a
4333		-	5 foreign corporation establishing or acquiring and maintaining
4334		-	6 a place of business in this State to conduct business as a
4335		-	7 fiduciary in accordance with Article IVA of this Act.
4336		-	8 (Source: P.A. 92-483, eff. 8-23-01.)
4337		-	9 (205 ILCS 620/4A-15)
4338		-	10 Sec. 4A-15. Representative offices.
4339		-	11 (a) A foreign corporation conducting fiduciary activities
4340		-	12 outside this State, but not conducting fiduciary activities in
4341		-	13 this State may establish a representative office under the
4342		-	14 Foreign Bank Representative Office Act. At these offices, the
4343		-	15 foreign corporation may market and solicit fiduciary services
4344		-	16 and provide back office and administrative support to the
4345		-	17 foreign corporation's fiduciary activities, but it may not
4346		-	18 engage in fiduciary activities.
4347		-	19 (b) A foreign corporation invested with trust powers or
4348		-	20 authority to act as a fiduciary pursuant to the laws of its
4349		-	21 home state but not conducting fiduciary activities must apply
4350		-	22 for and procure a license under the Foreign Bank
4351		-	23 Representative Office Act before establishing an office in
4352		-	24 this State for the purpose of marketing, soliciting, or
4353		-	25 transacting any service or product, unless such office is
4354		-
4355		-
4356		-
4357		-
4358		-
4359		-	HB0742 Engrossed - 123 - LRB104 04637 BAB 14664 b
4360		-
4361		-
4362		-	HB0742 Engrossed- 124 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 124 - LRB104 04637 BAB 14664 b
4363		-	HB0742 Engrossed - 124 - LRB104 04637 BAB 14664 b
4364		-	1 otherwise established as permitted by and in accordance with
4365		-	2 this Act, the Illinois Banking Act, the Savings Bank Act, the
4366		-	3 Foreign Banking Office Act, or any Act specified by rules
4367		-	4 adopted under this Act.
4368		-	5 (Source: P.A. 92-483, eff. 8-23-01; 92-811, eff. 8-21-02.)
4369		-	6 (205 ILCS 620/5-1) (from Ch. 17, par. 1555-1)
4370		-	7 Sec. 5-1. Commissioner's powers. The Commissioner of Banks
4371		-	8 and Real Estate shall have the following powers and authority
4372		-	9 and is charged with the duties and responsibilities designated
4373		-	10 in this Act:
4374		-	11 (a) To promulgate, in accordance with the Illinois
4375		-	12 Administrative Procedure Act, reasonable rules for the purpose
4376		-	13 of administering the provisions of this Act, for the purpose
4377		-	14 of protecting consumers of this State as may be necessary and
4378		-	15 appropriate, and for the purpose of incorporating by reference
4379		-	16 rules promulgated by the Federal Deposit Insurance
4380		-	17 Corporation, the Board of Governors of the Federal Reserve
4381		-	18 System, the Office of the Comptroller of the Currency, the
4382		-	19 Office of Thrift Supervision, or their successors that pertain
4383		-	20 to corporate fiduciaries, including, but not limited to,
4384		-	21 standards for the operation and conduct of the affairs of
4385		-	22 corporate fiduciaries;
4386		-	23 (b) To issue orders for the purpose of administering the
4387		-	24 provisions of this Act and any rule promulgated in accordance
4388		-	25 with this Act;
4389		-
4390		-
4391		-
4392		-
4393		-
4394		-	HB0742 Engrossed - 124 - LRB104 04637 BAB 14664 b
4395		-
4396		-
4397		-	HB0742 Engrossed- 125 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 125 - LRB104 04637 BAB 14664 b
4398		-	HB0742 Engrossed - 125 - LRB104 04637 BAB 14664 b
4399		-	1 (c) To appoint hearing officers to conduct hearings held
4400		-	2 pursuant to any of the powers granted to the Commissioner
4401		-	3 under this Section for the purpose of administering this Act
4402		-	4 and any rule promulgated in accordance with this Act;
4403		-	5 (d) To subpoena witnesses, to compel their attendance, to
4404		-	6 administer an oath, to examine any person under oath and to
4405		-	7 require the production of any relevant books, papers, accounts
4406		-	8 and documents in the course of and pursuant to any
4407		-	9 investigation being conducted, or any action being taken, by
4408		-	10 the Commissioner in respect of any matter relating to the
4409		-	11 duties imposed upon, or the powers vested in, the Commissioner
4410		-	12 under the provisions of this Act, or any rule or regulation
4411		-	13 promulgated in accordance with this Act;
4412		-	14 (e) To conduct hearings;
4413		-	15 (f) To promulgate the form and content of any applications
4414		-	16 required under this Act;
4415		-	17 (g) To impose civil penalties of up to $100,000 against
4416		-	18 any person or corporate fiduciary for each violation of any
4417		-	19 provision of this Act, any rule promulgated in accordance with
4418		-	20 this Act, any order of the Commissioner or any other action
4419		-	21 which, in the Commissioner's discretion, is a detriment or
4420		-	22 impediment to accepting or executing trusts; and
4421		-	23 (h) To address any inquiries to any corporate fiduciary,
4422		-	24 or the officers thereof, in relation to its doings and
4423		-	25 conditions, or any other matter connected with its affairs,
4424		-	26 and it shall be the duty of any corporate fiduciary or person
4425		-
4426		-
4427		-
4428		-
4429		-
4430		-	HB0742 Engrossed - 125 - LRB104 04637 BAB 14664 b
4431		-
4432		-
4433		-	HB0742 Engrossed- 126 -LRB104 04637 BAB 14664 b HB0742 Engrossed - 126 - LRB104 04637 BAB 14664 b
4434		-	HB0742 Engrossed - 126 - LRB104 04637 BAB 14664 b
4435		-	1 so addressed, to promptly reply in writing to such inquiries.
4436		-	2 The Commissioner may also require reports from any corporate
4437		-	3 fiduciary at any time he may deem desirable.
4438		-	4 (Source: P.A. 96-1365, eff. 7-28-10.)
4439		-	5 Section 90-25. The Consumer Fraud and Deceptive Business
4440		-	6 Practices Act is amended by adding Section 2HHHH as follows:
4441		-	7 (815 ILCS 505/2HHHH new)
4442		-	8 Sec. 2HHHH. Violations of the Digital Assets and Consumer
4443		-	9 Protection Act. Any person who violates Article 5 of the
4444		-	10 Digital Assets and Consumer Protection Act commits an unlawful
4445		-	11 practice within the meaning of this Act.
4446		-	12 Article 99. Non-acceleration and Effective Date
4447		-	13 Section 99-95. No acceleration or delay. Where this Act
4448		-	14 makes changes in a statute that is represented in this Act by
4449		-	15 text that is not yet or no longer in effect (for example, a
4450		-	16 Section represented by multiple versions), the use of that
4451		-	17 text does not accelerate or delay the taking effect of (i) the
4452		-	18 changes made by this Act or (ii) provisions derived from any
4453		-	19 other Public Act.
4454		-	20 Section 99-99. Effective date. This Act takes effect upon
4455		-	21 becoming law.
4456		-
4457		-
4458		-
4459		-
4460		-
4461		-	HB0742 Engrossed - 126 - LRB104 04637 BAB 14664 b
	45	+	HB0742 LRB104 04637 BAB 14664 b