103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3296

 

Introduced 2/17/2023, by Rep. Margaret Croke

 

SYNOPSIS AS INTRODUCED:
 
205 ILCS 305/12  from Ch. 17, par. 4413

    Amends the Illinois Credit Union Act. Provides that the regulatory fee schedule shall not be increased if the amount remaining in the Credit Union Fund at the end of any fiscal year is greater than 25% of that fiscal year's total initial appropriations, or the most recent fiscal year for which there is an initial appropriations, relating to the administration and enforcement of the provisions and other related laws, rules, and regulations (rather than the total actual and operational expenses incurred by the State in administering and enforcing the provisions and other laws, rules, and regulations as may apply to the administration and enforcement of laws, rules, and regulations for the preceding fiscal year). Provides that when the balance in the Credit Union Fund at the end of a fiscal year exceeds 25% of that fiscal year's total initial appropriations relating to the administration and enforcement of the provisions and other related laws, rules, and regulations (rather than the total administrative and operational expenses incurred by the State in administering and enforcing the provisions), the excess shall be credited to credit unions and applied against their regulatory fees for the subsequent fiscal year. Provides that the amount credited to each credit union shall be in the same proportion as the regulatory fee paid by that credit union for the fiscal year in which the excess is produced bears to the aggregate amount of all regulatory fees (rather than fees) collected by the Department of Financial and Professional Regulation under the provisions for the same fiscal year. Removes a regulatory fee cap of $141,875. Makes other changes.


LRB103 27828 BMS 54206 b

 

 

A BILL FOR

 

HB3296LRB103 27828 BMS 54206 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Credit Union Act is amended by
5changing Section 12 as follows:
 
6    (205 ILCS 305/12)  (from Ch. 17, par. 4413)
7    Sec. 12. Regulatory fees.
8    (1) A For the fiscal year beginning July 1, 2007, a credit
9union regulated by the Department shall pay a regulatory fee
10to the Department based upon its total assets as shown by its
11Year-end Call Report at the following rates or at a lesser rate
12established by the Secretary in a manner proportionately
13consistent with the following rates and sufficient to fund the
14actual administrative and operational expenses of the
15Department's Credit Union Section pursuant to subsection (4)
16of this Section:
17TOTAL ASSETSREGULATORY FEE
18$25,000 or less ................$100
19Over $25,000 and not over
20$100,000 .......................$100 plus $4 per
21$1,000 of assets in excess of
22$25,000
23Over $100,000 and not over

 

 

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1$200,000 .......................$400 plus $3 per
2$1,000 of assets in excess of
3$100,000
4Over $200,000 and not over
5$500,000 .......................$700 plus $2 per
6$1,000 of assets in excess of
7$200,000
8Over $500,000 and not over
9$1,000,000 .....................$1,300 plus $1.40
10per $1,000 of assets in excess
11of $500,000
12Over $1,000,000 and not
13over $5,000,000.................$2,000 plus $0.50
14per $1,000 of assets in
15excess of $1,000,000
16Over $5,000,000 and not
17over $30,000,000 ............... $4,540 plus $0.397
18per $1,000 of assets
19in excess of $5,000,000
20Over $30,000,000 and not over
21$100,000,000....................$14,471 plus $0.34
22per $1,000 of assets
23 in excess of $30,000,000
24Over $100,000,000 and not
25over $500,000,000 ..............$38,306 plus $0.17
26per $1,000 of assets

 

 

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1in excess of $100,000,000
2Over $500,000,000 ..............$106,406 plus $0.056
3per $1,000 of assets
4in excess of $500,000,000
5    (2) The Secretary shall review the regulatory fee schedule
6in subsection (1) and the projected earnings on those fees on
7an annual basis and adjust the fee schedule no more than 5%
8annually if necessary to defray the estimated administrative
9and operational expenses of the Credit Union Section of the
10Department as defined in subsection (5). However, the fee
11schedule shall not be increased if the amount remaining in the
12Credit Union Fund at the end of any fiscal year is greater than
1325% of that fiscal year's total initial appropriations, or the
14most recent fiscal year for which there is an initial
15appropriations, relating to the administration and enforcement
16of this Act and other related the total actual and operational
17expenses incurred by the State in administering and enforcing
18the Illinois Credit Union Act and other laws, rules, and
19regulations as may apply to the administration and enforcement
20of the foregoing laws, rules, and regulations as amended from
21time to time for the preceding fiscal year. The regulatory fee
22for the next fiscal year shall be calculated by the Secretary
23based on the credit union's total assets as of December 31 of
24the preceding calendar year. The Secretary shall provide
25credit unions with written notice of any adjustment made in
26the regulatory fee schedule.

 

 

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1    (3) A credit union shall pay to the Department a
2regulatory fee in quarterly installments equal to one-fourth
3of the regulatory fee due in accordance with the regulatory
4fee schedule in subsection (1), on the basis of assets as of
5the Year-end Call Report of the preceding calendar year. The
6total annual regulatory fee shall not be less than $100 or more
7than $141,875, provided that the regulatory fee cap of
8$141,875 shall be adjusted to incorporate the same percentage
9increase as the Secretary makes in the regulatory fee schedule
10from time to time under subsection (2). No regulatory fee
11shall be collected from a credit union until it has been in
12operation for one year. The regulatory fee shall be billed to
13credit unions on a quarterly basis and it shall be payable by
14credit unions on the due date for the Call Report for the
15subject quarter.
16    (4) The aggregate of all fees collected by the Department
17under this Act shall be paid promptly after they are received,
18accompanied by a detailed statement thereof, into the State
19Treasury and shall be set apart in the Credit Union Fund, a
20special fund hereby created in the State treasury. The amounts
21amount from time to time deposited in the Credit Union Fund and
22shall be used to offset the ordinary administrative and
23operational expenses of the Credit Union Section of the
24Department under this Act and other related laws, rules, and
25regulations. All earnings received from investments of funds
26in the Credit Union Fund shall be deposited into the Credit

 

 

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1Union Fund and may be used for the same purposes as fees
2deposited into that fund. Moneys deposited in the Credit Union
3Fund may be transferred to the Professions Indirect Cost Fund,
4as authorized under Section 2105-300 of the Department of
5Professional Regulation Law of the Civil Administrative Code
6of Illinois.
7    Notwithstanding provisions in the State Finance Act, as
8now or hereafter amended, or any other law to the contrary, the
9Governor may, during any fiscal year through January 10, 2011,
10from time to time direct the State Treasurer and Comptroller
11to transfer a specified sum not exceeding 10% of the revenues
12to be deposited into the Credit Union Fund during that fiscal
13year from that Fund to the General Revenue Fund in order to
14help defray the State's operating costs for the fiscal year.
15Notwithstanding provisions in the State Finance Act, as now or
16hereafter amended, or any other law to the contrary, the total
17sum transferred from the Credit Union Fund to the General
18Revenue Fund pursuant to this provision shall not exceed
19during any fiscal year 10% of the revenues to be deposited into
20the Credit Union Fund during that fiscal year. The State
21Treasurer and Comptroller shall transfer the amounts
22designated under this Section as soon as may be practicable
23after receiving the direction to transfer from the Governor.
24    (5) The administrative and operational expenses for any
25fiscal year shall mean the ordinary and contingent expenses
26for that year incidental to making the examinations provided

 

 

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1for by, and for administering, this Act and other related
2laws, rules, and regulations, including all salaries and other
3compensation paid for personal services rendered for the State
4by officers or employees of the State to enforce this Act; all
5expenditures for telephone and telegraph charges, postage and
6postal charges, office supplies and services, furniture and
7equipment, office space and maintenance thereof, travel
8expenses, and other necessary expenses; all to the extent that
9such expenditures are directly incidental to such examination
10or administration.
11    (6) When the balance in the Credit Union Fund at the end of
12a fiscal year exceeds 25% of that fiscal year's total initial
13appropriations relating to the administration and enforcement
14of this Act the total administrative and operational expenses
15incurred by the State in administering and enforcing the
16Illinois Credit Union Act and other related laws, rules, and
17regulations as may apply to the administration and enforcement
18of the foregoing laws, rules, and regulations as amended from
19time to time for that fiscal year, such excess shall be
20credited to credit unions and applied against their regulatory
21fees for the subsequent fiscal year. The amount credited to
22each credit union shall be in the same proportion as the
23regulatory fee paid by such credit union for the fiscal year in
24which the excess is produced bears to the aggregate amount of
25all regulatory fees collected by the Department under this Act
26for the same fiscal year.

 

 

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1    (7) (Blank).
2    (8) Nothing in this Act shall prohibit the General
3Assembly from appropriating funds to the Department from the
4General Revenue Fund for the purpose of administering this
5Act.
6    (9) For purposes of this Section, "fiscal year" means a
7period beginning on July 1 of any calendar year and ending on
8June 30 of the next calendar year.
9(Source: P.A. 100-201, eff. 8-18-17.)