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Full Text of SB3971  102nd General Assembly

SB3971 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB3971

 

Introduced 1/21/2022, by Sen. Laura M. Murphy

 

SYNOPSIS AS INTRODUCED:
 
205 ILCS 5/48.1  from Ch. 17, par. 360
205 ILCS 5/48.6
205 ILCS 205/4013  from Ch. 17, par. 7304-13
205 ILCS 205/9011  from Ch. 17, par. 7309-11

    Amends the Illinois Banking Act. In provisions concerning customer financial records and confidentiality, provides that a bank shall disclose financial records only after the bank sends a copy of the subpoena, summons, warrant, citation, or court order to the person establishing the relationship with the bank at the person's last known address through a third-party commercial carrier or courier with delivery charge fully prepaid, by hand delivery, or by electronic delivery at an email address on file with the bank. In provisions concerning retention of records, provides that each bank shall retain its records in a manner consistent with prudent business practices and applicable State or federal laws, rules, and regulations. Provides that except where a retention period is required by State or federal laws, rules, or regulations, a bank may destroy its records. Removes provisions concerning retention of records. Makes the same changes in the Savings Bank Act. Makes other changes. Effective immediately.


LRB102 24625 BMS 33863 b

 

 

A BILL FOR

 

SB3971LRB102 24625 BMS 33863 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 Banking Act is amended by changing
5Sections 48.1 and 48.6 as follows:
 
6    (205 ILCS 5/48.1)  (from Ch. 17, par. 360)
7    Sec. 48.1. Customer financial records; confidentiality.
8    (a) For the purpose of this Section, the term "financial
9records" means any original, any copy, or any summary of:
10        (1) a document granting signature authority over a
11    deposit or account;
12        (2) a statement, ledger card or other record on any
13    deposit or account, which shows each transaction in or
14    with respect to that account;
15        (3) a check, draft or money order drawn on a bank or
16    issued and payable by a bank; or
17        (4) any other item containing information pertaining
18    to any relationship established in the ordinary course of
19    a bank's business between a bank and its customer,
20    including financial statements or other financial
21    information provided by the customer.
22    (b) This Section does not prohibit:
23        (1) The preparation, examination, handling or

 

 

SB3971- 2 -LRB102 24625 BMS 33863 b

1    maintenance of any financial records by any officer,
2    employee or agent of a bank having custody of the records,
3    or the examination of the records by a certified public
4    accountant engaged by the bank to perform an independent
5    audit.
6        (2) The examination of any financial records by, or
7    the furnishing of financial records by a bank to, any
8    officer, employee or agent of (i) the Commissioner of
9    Banks and Real Estate, (ii) after May 31, 1997, a state
10    regulatory authority authorized to examine a branch of a
11    State bank located in another state, (iii) the Comptroller
12    of the Currency, (iv) the Federal Reserve Board, or (v)
13    the Federal Deposit Insurance Corporation for use solely
14    in the exercise of his duties as an officer, employee, or
15    agent.
16        (3) The publication of data furnished from financial
17    records relating to customers where the data cannot be
18    identified to any particular customer or account.
19        (4) The making of reports or returns required under
20    Chapter 61 of the Internal Revenue Code of 1986.
21        (5) Furnishing information concerning the dishonor of
22    any negotiable instrument permitted to be disclosed under
23    the Uniform Commercial Code.
24        (6) The exchange in the regular course of business of
25    (i) credit information between a bank and other banks or
26    financial institutions or commercial enterprises, directly

 

 

SB3971- 3 -LRB102 24625 BMS 33863 b

1    or through a consumer reporting agency or (ii) financial
2    records or information derived from financial records
3    between a bank and other banks or financial institutions
4    or commercial enterprises for the purpose of conducting
5    due diligence pursuant to a purchase or sale involving the
6    bank or assets or liabilities of the bank.
7        (7) The furnishing of information to the appropriate
8    law enforcement authorities where the bank reasonably
9    believes it has been the victim of a crime.
10        (8) The furnishing of information under the Revised
11    Uniform Unclaimed Property Act.
12        (9) The furnishing of information under the Illinois
13    Income Tax Act and the Illinois Estate and
14    Generation-Skipping Transfer Tax Act.
15        (10) The furnishing of information under the federal
16    Currency and Foreign Transactions Reporting Act Title 31,
17    United States Code, Section 1051 et seq.
18        (11) The furnishing of information under any other
19    statute that by its terms or by regulations promulgated
20    thereunder requires the disclosure of financial records
21    other than by subpoena, summons, warrant, or court order.
22        (12) The furnishing of information about the existence
23    of an account of a person to a judgment creditor of that
24    person who has made a written request for that
25    information.
26        (13) The exchange in the regular course of business of

 

 

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1    information between commonly owned banks in connection
2    with a transaction authorized under paragraph (23) of
3    Section 5 and conducted at an affiliate facility.
4        (14) The furnishing of information in accordance with
5    the federal Personal Responsibility and Work Opportunity
6    Reconciliation Act of 1996. Any bank governed by this Act
7    shall enter into an agreement for data exchanges with a
8    State agency provided the State agency pays to the bank a
9    reasonable fee not to exceed its actual cost incurred. A
10    bank providing information in accordance with this item
11    shall not be liable to any account holder or other person
12    for any disclosure of information to a State agency, for
13    encumbering or surrendering any assets held by the bank in
14    response to a lien or order to withhold and deliver issued
15    by a State agency, or for any other action taken pursuant
16    to this item, including individual or mechanical errors,
17    provided the action does not constitute gross negligence
18    or willful misconduct. A bank shall have no obligation to
19    hold, encumber, or surrender assets until it has been
20    served with a subpoena, summons, warrant, court or
21    administrative order, lien, or levy.
22        (15) The exchange in the regular course of business of
23    information between a bank and any commonly owned
24    affiliate of the bank, subject to the provisions of the
25    Financial Institutions Insurance Sales Law.
26        (16) The furnishing of information to law enforcement

 

 

SB3971- 5 -LRB102 24625 BMS 33863 b

1    authorities, the Illinois Department on Aging and its
2    regional administrative and provider agencies, the
3    Department of Human Services Office of Inspector General,
4    or public guardians: (i) upon subpoena by the
5    investigatory entity or the guardian, or (ii) if there is
6    suspicion by the bank that a customer who is an elderly
7    person or person with a disability has been or may become
8    the victim of financial exploitation. For the purposes of
9    this item (16), the term: (i) "elderly person" means a
10    person who is 60 or more years of age, (ii) "disabled
11    person" means a person who has or reasonably appears to
12    the bank to have a physical or mental disability that
13    impairs his or her ability to seek or obtain protection
14    from or prevent financial exploitation, and (iii)
15    "financial exploitation" means tortious or illegal use of
16    the assets or resources of an elderly or disabled person,
17    and includes, without limitation, misappropriation of the
18    elderly or disabled person's assets or resources by undue
19    influence, breach of fiduciary relationship, intimidation,
20    fraud, deception, extortion, or the use of assets or
21    resources in any manner contrary to law. A bank or person
22    furnishing information pursuant to this item (16) shall be
23    entitled to the same rights and protections as a person
24    furnishing information under the Adult Protective Services
25    Act and the Illinois Domestic Violence Act of 1986.
26        (17) The disclosure of financial records or

 

 

SB3971- 6 -LRB102 24625 BMS 33863 b

1    information as necessary to effect, administer, or enforce
2    a transaction requested or authorized by the customer, or
3    in connection with:
4            (A) servicing or processing a financial product or
5        service requested or authorized by the customer;
6            (B) maintaining or servicing a customer's account
7        with the bank; or
8            (C) a proposed or actual securitization or
9        secondary market sale (including sales of servicing
10        rights) related to a transaction of a customer.
11        Nothing in this item (17), however, authorizes the
12    sale of the financial records or information of a customer
13    without the consent of the customer.
14        (18) The disclosure of financial records or
15    information as necessary to protect against actual or
16    potential fraud, unauthorized transactions, claims, or
17    other liability.
18        (19)(A) The disclosure of financial records or
19    information related to a private label credit program
20    between a financial institution and a private label party
21    in connection with that private label credit program. Such
22    information is limited to outstanding balance, available
23    credit, payment and performance and account history,
24    product references, purchase information, and information
25    related to the identity of the customer.
26        (B)(1) For purposes of this paragraph (19) of

 

 

SB3971- 7 -LRB102 24625 BMS 33863 b

1    subsection (b) of Section 48.1, a "private label credit
2    program" means a credit program involving a financial
3    institution and a private label party that is used by a
4    customer of the financial institution and the private
5    label party primarily for payment for goods or services
6    sold, manufactured, or distributed by a private label
7    party.
8        (2) For purposes of this paragraph (19) of subsection
9    (b) of Section 48.1, a "private label party" means, with
10    respect to a private label credit program, any of the
11    following: a retailer, a merchant, a manufacturer, a trade
12    group, or any such person's affiliate, subsidiary, member,
13    agent, or service provider.
14        (20)(A) The furnishing of financial records of a
15    customer to the Department to aid the Department's initial
16    determination or subsequent re-determination of the
17    customer's eligibility for Medicaid and Medicaid long-term
18    care benefits for long-term care services, provided that
19    the bank receives the written consent and authorization of
20    the customer, which shall:
21            (1) have the customer's signature notarized;
22            (2) be signed by at least one witness who
23        certifies that he or she believes the customer to be of
24        sound mind and memory;
25            (3) be tendered to the bank at the earliest
26        practicable time following its execution,

 

 

SB3971- 8 -LRB102 24625 BMS 33863 b

1        certification, and notarization;
2            (4) specifically limit the disclosure of the
3        customer's financial records to the Department; and
4            (5) be in substantially the following form:
 
5
CUSTOMER CONSENT AND AUTHORIZATION
6
FOR RELEASE OF FINANCIAL RECORDS

 
7I, ......................................., hereby authorize 
8       (Name of Customer) 
 
9............................................................. 
10(Name of Financial Institution)
 
11............................................................. 
12(Address of Financial Institution)
 
13to disclose the following financial records:
 
14any and all information concerning my deposit, savings, money
15market, certificate of deposit, individual retirement,
16retirement plan, 401(k) plan, incentive plan, employee benefit
17plan, mutual fund and loan accounts (including, but not
18limited to, any indebtedness or obligation for which I am a
19co-borrower, co-obligor, guarantor, or surety), and any and
20all other accounts in which I have an interest and any other

 

 

SB3971- 9 -LRB102 24625 BMS 33863 b

1information regarding me in the possession of the Financial
2Institution,
 
3to the Illinois Department of Human Services or the Illinois
4Department of Healthcare and Family Services, or both ("the
5Department"), for the following purpose(s):
 
6to aid in the initial determination or re-determination by the
7State of Illinois of my eligibility for Medicaid long-term
8care benefits, pursuant to applicable law.
 
9I understand that this Consent and Authorization may be
10revoked by me in writing at any time before my financial
11records, as described above, are disclosed, and that this
12Consent and Authorization is valid until the Financial
13Institution receives my written revocation. This Consent and
14Authorization shall constitute valid authorization for the
15Department identified above to inspect all such financial
16records set forth above, and to request and receive copies of
17such financial records from the Financial Institution (subject
18to such records search and reproduction reimbursement policies
19as the Financial Institution may have in place). An executed
20copy of this Consent and Authorization shall be sufficient and
21as good as the original and permission is hereby granted to
22honor a photostatic or electronic copy of this Consent and
23Authorization. Disclosure is strictly limited to the

 

 

SB3971- 10 -LRB102 24625 BMS 33863 b

1Department identified above and no other person or entity
2shall receive my financial records pursuant to this Consent
3and Authorization. By signing this form, I agree to indemnify
4and hold the Financial Institution harmless from any and all
5claims, demands, and losses, including reasonable attorneys
6fees and expenses, arising from or incurred in its reliance on
7this Consent and Authorization. As used herein, "Customer"
8shall mean "Member" if the Financial Institution is a credit
9union.
 
10....................... ...................... 
11(Date)                  (Signature of Customer)             
 
12                         ...................... 
13                         ...................... 
14                         (Address of Customer) 
 
15                         ...................... 
16                         (Customer's birth date) 
17                         (month/day/year) 
 
18The undersigned witness certifies that .................,
19known to me to be the same person whose name is subscribed as
20the customer to the foregoing Consent and Authorization,
21appeared before me and the notary public and acknowledged
22signing and delivering the instrument as his or her free and

 

 

SB3971- 11 -LRB102 24625 BMS 33863 b

1voluntary act for the uses and purposes therein set forth. I
2believe him or her to be of sound mind and memory. The
3undersigned witness also certifies that the witness is not an
4owner, operator, or relative of an owner or operator of a
5long-term care facility in which the customer is a patient or
6resident.
 
7Dated: ................. ...................... 
8                         (Signature of Witness) 
 
9                         ...................... 
10                         (Print Name of Witness) 
 
11                         ...................... 
12                         ...................... 
13                         (Address of Witness) 
 
14State of Illinois)
15                 ) ss.
16County of .......)
 
17The undersigned, a notary public in and for the above county
18and state, certifies that .........., known to me to be the
19same person whose name is subscribed as the customer to the
20foregoing Consent and Authorization, appeared before me
21together with the witness, .........., in person and

 

 

SB3971- 12 -LRB102 24625 BMS 33863 b

1acknowledged signing and delivering the instrument as the free
2and voluntary act of the customer for the uses and purposes
3therein set forth.
 
4Dated:.......................................................
5Notary Public:...............................................
6My commission expires:.......................................
 
7        (B) In no event shall the bank distribute the
8    customer's financial records to the long-term care
9    facility from which the customer seeks initial or
10    continuing residency or long-term care services.
11        (C) A bank providing financial records of a customer
12    in good faith relying on a consent and authorization
13    executed and tendered in accordance with this paragraph
14    (20) shall not be liable to the customer or any other
15    person in relation to the bank's disclosure of the
16    customer's financial records to the Department. The
17    customer signing the consent and authorization shall
18    indemnify and hold the bank harmless that relies in good
19    faith upon the consent and authorization and incurs a loss
20    because of such reliance. The bank recovering under this
21    indemnification provision shall also be entitled to
22    reasonable attorney's fees and the expenses of recovery.
23        (D) A bank shall be reimbursed by the customer for all
24    costs reasonably necessary and directly incurred in

 

 

SB3971- 13 -LRB102 24625 BMS 33863 b

1    searching for, reproducing, and disclosing a customer's
2    financial records required or requested to be produced
3    pursuant to any consent and authorization executed under
4    this paragraph (20). The requested financial records shall
5    be delivered to the Department within 10 days after
6    receiving a properly executed consent and authorization or
7    at the earliest practicable time thereafter if the
8    requested records cannot be delivered within 10 days, but
9    delivery may be delayed until the final reimbursement of
10    all costs is received by the bank. The bank may honor a
11    photostatic or electronic copy of a properly executed
12    consent and authorization.
13        (E) Nothing in this paragraph (20) shall impair,
14    abridge, or abrogate the right of a customer to:
15            (1) directly disclose his or her financial records
16        to the Department or any other person; or
17            (2) authorize his or her attorney or duly
18        appointed agent to request and obtain the customer's
19        financial records and disclose those financial records
20        to the Department.
21        (F) For purposes of this paragraph (20), "Department"
22    means the Department of Human Services and the Department
23    of Healthcare and Family Services or any successor
24    administrative agency of either agency.
25    (c) Except as otherwise provided by this Act, a bank may
26not disclose to any person, except to the customer or his duly

 

 

SB3971- 14 -LRB102 24625 BMS 33863 b

1authorized agent, any financial records or financial
2information obtained from financial records relating to that
3customer of that bank unless:
4        (1) the customer has authorized disclosure to the
5    person;
6        (2) the financial records are disclosed in response to
7    a lawful subpoena, summons, warrant, citation to discover
8    assets, or court order which meets the requirements of
9    subsection (d) of this Section; or
10        (3) the bank is attempting to collect an obligation
11    owed to the bank and the bank complies with the provisions
12    of Section 2I of the Consumer Fraud and Deceptive Business
13    Practices Act.
14    (d) A bank shall disclose financial records under
15paragraph (2) of subsection (c) of this Section under a lawful
16subpoena, summons, warrant, citation to discover assets, or
17court order only after the bank sends mails a copy of the
18subpoena, summons, warrant, citation to discover assets, or
19court order to the person establishing the relationship with
20the bank, if living, and, otherwise the person's his personal
21representative, if known, at the person's his last known
22address by first class mail, postage prepaid, through a
23third-party commercial carrier or courier with delivery charge
24fully prepaid, by hand delivery, or by electronic delivery at
25an email address on file with the bank (if the person
26establishing the relationship with the bank has consented to

 

 

SB3971- 15 -LRB102 24625 BMS 33863 b

1receive electronic delivery and, if the person establishing
2the relationship with the bank is a consumer, the person has
3consented under the consumer consent provisions set forth in
4Section 7001 of Title 15 of the United States Code), unless the
5bank is specifically prohibited from notifying the person by
6order of court or by applicable State or federal law. A bank
7shall not mail a copy of a subpoena to any person pursuant to
8this subsection if the subpoena was issued by a grand jury
9under the Statewide Grand Jury Act.
10    (e) Any officer or employee of a bank who knowingly and
11willfully furnishes financial records in violation of this
12Section is guilty of a business offense and, upon conviction,
13shall be fined not more than $1,000.
14    (f) Any person who knowingly and willfully induces or
15attempts to induce any officer or employee of a bank to
16disclose financial records in violation of this Section is
17guilty of a business offense and, upon conviction, shall be
18fined not more than $1,000.
19    (g) A bank shall be reimbursed for costs that are
20reasonably necessary and that have been directly incurred in
21searching for, reproducing, or transporting books, papers,
22records, or other data required or requested to be produced
23pursuant to a lawful subpoena, summons, warrant, citation to
24discover assets, or court order. The Commissioner shall
25determine the rates and conditions under which payment may be
26made.

 

 

SB3971- 16 -LRB102 24625 BMS 33863 b

1(Source: P.A. 100-22, eff. 1-1-18; 100-664, eff. 1-1-19;
2100-888, eff. 8-14-18; 101-81, eff. 7-12-19.)
 
3    (205 ILCS 5/48.6)
4    Sec. 48.6. Retention of records.
5    (a) Each bank shall retain its records in a manner
6consistent with prudent business practices and in accordance
7with this Act and applicable State or federal laws, rules, and
8regulations. The record retention system utilized must be able
9to accurately produce such records.
10    (b) Except where a retention period is required by State
11or federal laws, rules, or regulations, a bank may destroy its
12records subject to the considerations set forth in subsection
13(a). In the destruction of records, the bank shall take
14reasonable precautions to ensure the confidentiality of
15information in the records.
16Unless a federal law requires otherwise, the Commissioner may
17by rule prescribe periods of time for which banks operating
18under this Act must retain records and after the expiration of
19which, the bank may destroy those records. No liability shall
20accrue against the bank, the Commissioner, or this State for
21the destruction of records according to rules of the
22Commissioner promulgated under the authority of this Section.
23In any cause or proceeding in which any records may be called
24in question or be demanded by any bank, a showing of the
25expiration of the period so prescribed shall be sufficient

 

 

SB3971- 17 -LRB102 24625 BMS 33863 b

1excuse for failure to produce them.
2(Source: P.A. 91-929, eff. 12-15-00.)
 
3    Section 10. The Savings Bank Act is amended by changing
4Sections 4013 and 9011 as follows:
 
5    (205 ILCS 205/4013)  (from Ch. 17, par. 7304-13)
6    Sec. 4013. Access to books and records; communication with
7members and shareholders.
8    (a) Every member or shareholder shall have the right to
9inspect books and records of the savings bank that pertain to
10his accounts. Otherwise, the right of inspection and
11examination of the books and records shall be limited as
12provided in this Act, and no other person shall have access to
13the books and records nor shall be entitled to a list of the
14members or shareholders.
15    (b) For the purpose of this Section, the term "financial
16records" means any original, any copy, or any summary of (1) a
17document granting signature authority over a deposit or
18account; (2) a statement, ledger card, or other record on any
19deposit or account that shows each transaction in or with
20respect to that account; (3) a check, draft, or money order
21drawn on a savings bank or issued and payable by a savings
22bank; or (4) any other item containing information pertaining
23to any relationship established in the ordinary course of a
24savings bank's business between a savings bank and its

 

 

SB3971- 18 -LRB102 24625 BMS 33863 b

1customer, including financial statements or other financial
2information provided by the member or shareholder.
3    (c) This Section does not prohibit:
4        (1) The preparation, examination, handling, or
5    maintenance of any financial records by any officer,
6    employee, or agent of a savings bank having custody of
7    records or examination of records by a certified public
8    accountant engaged by the savings bank to perform an
9    independent audit.
10        (2) The examination of any financial records by, or
11    the furnishing of financial records by a savings bank to,
12    any officer, employee, or agent of the Commissioner of
13    Banks and Real Estate or the federal depository
14    institution regulator for use solely in the exercise of
15    his duties as an officer, employee, or agent.
16        (3) The publication of data furnished from financial
17    records relating to members or holders of capital where
18    the data cannot be identified to any particular member,
19    shareholder, or account.
20        (4) The making of reports or returns required under
21    Chapter 61 of the Internal Revenue Code of 1986.
22        (5) Furnishing information concerning the dishonor of
23    any negotiable instrument permitted to be disclosed under
24    the Uniform Commercial Code.
25        (6) The exchange in the regular course of business of
26    (i) credit information between a savings bank and other

 

 

SB3971- 19 -LRB102 24625 BMS 33863 b

1    savings banks or financial institutions or commercial
2    enterprises, directly or through a consumer reporting
3    agency or (ii) financial records or information derived
4    from financial records between a savings bank and other
5    savings banks or financial institutions or commercial
6    enterprises for the purpose of conducting due diligence
7    pursuant to a purchase or sale involving the savings bank
8    or assets or liabilities of the savings bank.
9        (7) The furnishing of information to the appropriate
10    law enforcement authorities where the savings bank
11    reasonably believes it has been the victim of a crime.
12        (8) The furnishing of information pursuant to the
13    Revised Uniform Unclaimed Property Act.
14        (9) The furnishing of information pursuant to the
15    Illinois Income Tax Act and the Illinois Estate and
16    Generation-Skipping Transfer Tax Act.
17        (10) The furnishing of information pursuant to the
18    federal Currency and Foreign Transactions Reporting Act,
19    (Title 31, United States Code, Section 1051 et seq.).
20        (11) The furnishing of information pursuant to any
21    other statute which by its terms or by regulations
22    promulgated thereunder requires the disclosure of
23    financial records other than by subpoena, summons,
24    warrant, or court order.
25        (12) The furnishing of information in accordance with
26    the federal Personal Responsibility and Work Opportunity

 

 

SB3971- 20 -LRB102 24625 BMS 33863 b

1    Reconciliation Act of 1996. Any savings bank governed by
2    this Act shall enter into an agreement for data exchanges
3    with a State agency provided the State agency pays to the
4    savings bank a reasonable fee not to exceed its actual
5    cost incurred. A savings bank providing information in
6    accordance with this item shall not be liable to any
7    account holder or other person for any disclosure of
8    information to a State agency, for encumbering or
9    surrendering any assets held by the savings bank in
10    response to a lien or order to withhold and deliver issued
11    by a State agency, or for any other action taken pursuant
12    to this item, including individual or mechanical errors,
13    provided the action does not constitute gross negligence
14    or willful misconduct. A savings bank shall have no
15    obligation to hold, encumber, or surrender assets until it
16    has been served with a subpoena, summons, warrant, court
17    or administrative order, lien, or levy.
18        (13) The furnishing of information to law enforcement
19    authorities, the Illinois Department on Aging and its
20    regional administrative and provider agencies, the
21    Department of Human Services Office of Inspector General,
22    or public guardians: (i) upon subpoena by the
23    investigatory entity or the guardian, or (ii) if there is
24    suspicion by the savings bank that a customer who is an
25    elderly person or person with a disability has been or may
26    become the victim of financial exploitation. For the

 

 

SB3971- 21 -LRB102 24625 BMS 33863 b

1    purposes of this item (13), the term: (i) "elderly person"
2    means a person who is 60 or more years of age, (ii) "person
3    with a disability" means a person who has or reasonably
4    appears to the savings bank to have a physical or mental
5    disability that impairs his or her ability to seek or
6    obtain protection from or prevent financial exploitation,
7    and (iii) "financial exploitation" means tortious or
8    illegal use of the assets or resources of an elderly
9    person or person with a disability, and includes, without
10    limitation, misappropriation of the assets or resources of
11    the elderly person or person with a disability by undue
12    influence, breach of fiduciary relationship, intimidation,
13    fraud, deception, extortion, or the use of assets or
14    resources in any manner contrary to law. A savings bank or
15    person furnishing information pursuant to this item (13)
16    shall be entitled to the same rights and protections as a
17    person furnishing information under the Adult Protective
18    Services Act and the Illinois Domestic Violence Act of
19    1986.
20        (14) The disclosure of financial records or
21    information as necessary to effect, administer, or enforce
22    a transaction requested or authorized by the member or
23    holder of capital, or in connection with:
24            (A) servicing or processing a financial product or
25        service requested or authorized by the member or
26        holder of capital;

 

 

SB3971- 22 -LRB102 24625 BMS 33863 b

1            (B) maintaining or servicing an account of a
2        member or holder of capital with the savings bank; or
3            (C) a proposed or actual securitization or
4        secondary market sale (including sales of servicing
5        rights) related to a transaction of a member or holder
6        of capital.
7        Nothing in this item (14), however, authorizes the
8    sale of the financial records or information of a member
9    or holder of capital without the consent of the member or
10    holder of capital.
11        (15) The exchange in the regular course of business of
12    information between a savings bank and any commonly owned
13    affiliate of the savings bank, subject to the provisions
14    of the Financial Institutions Insurance Sales Law.
15        (16) The disclosure of financial records or
16    information as necessary to protect against or prevent
17    actual or potential fraud, unauthorized transactions,
18    claims, or other liability.
19        (17)(a) The disclosure of financial records or
20    information related to a private label credit program
21    between a financial institution and a private label party
22    in connection with that private label credit program. Such
23    information is limited to outstanding balance, available
24    credit, payment and performance and account history,
25    product references, purchase information, and information
26    related to the identity of the customer.

 

 

SB3971- 23 -LRB102 24625 BMS 33863 b

1        (b)(1) For purposes of this paragraph (17) of
2    subsection (c) of Section 4013, a "private label credit
3    program" means a credit program involving a financial
4    institution and a private label party that is used by a
5    customer of the financial institution and the private
6    label party primarily for payment for goods or services
7    sold, manufactured, or distributed by a private label
8    party.
9        (2) For purposes of this paragraph (17) of subsection
10    (c) of Section 4013, a "private label party" means, with
11    respect to a private label credit program, any of the
12    following: a retailer, a merchant, a manufacturer, a trade
13    group, or any such person's affiliate, subsidiary, member,
14    agent, or service provider.
15        (18)(a) The furnishing of financial records of a
16    customer to the Department to aid the Department's initial
17    determination or subsequent re-determination of the
18    customer's eligibility for Medicaid and Medicaid long-term
19    care benefits for long-term care services, provided that
20    the savings bank receives the written consent and
21    authorization of the customer, which shall:
22            (1) have the customer's signature notarized;
23            (2) be signed by at least one witness who
24        certifies that he or she believes the customer to be of
25        sound mind and memory;
26            (3) be tendered to the savings bank at the

 

 

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1        earliest practicable time following its execution,
2        certification, and notarization;
3            (4) specifically limit the disclosure of the
4        customer's financial records to the Department; and
5            (5) be in substantially the following form:
 
6
CUSTOMER CONSENT AND AUTHORIZATION
7
FOR RELEASE OF FINANCIAL RECORDS

 
8I, ......................................., hereby authorize 
9       (Name of Customer) 
 
10............................................................. 
11(Name of Financial Institution)
 
12............................................................. 
13(Address of Financial Institution)
 
14to disclose the following financial records:
 
15any and all information concerning my deposit, savings, money
16market, certificate of deposit, individual retirement,
17retirement plan, 401(k) plan, incentive plan, employee benefit
18plan, mutual fund and loan accounts (including, but not
19limited to, any indebtedness or obligation for which I am a
20co-borrower, co-obligor, guarantor, or surety), and any and

 

 

SB3971- 25 -LRB102 24625 BMS 33863 b

1all other accounts in which I have an interest and any other
2information regarding me in the possession of the Financial
3Institution,
 
4to the Illinois Department of Human Services or the Illinois
5Department of Healthcare and Family Services, or both ("the
6Department"), for the following purpose(s):
 
7to aid in the initial determination or re-determination by the
8State of Illinois of my eligibility for Medicaid long-term
9care benefits, pursuant to applicable law.
 
10I understand that this Consent and Authorization may be
11revoked by me in writing at any time before my financial
12records, as described above, are disclosed, and that this
13Consent and Authorization is valid until the Financial
14Institution receives my written revocation. This Consent and
15Authorization shall constitute valid authorization for the
16Department identified above to inspect all such financial
17records set forth above, and to request and receive copies of
18such financial records from the Financial Institution (subject
19to such records search and reproduction reimbursement policies
20as the Financial Institution may have in place). An executed
21copy of this Consent and Authorization shall be sufficient and
22as good as the original and permission is hereby granted to
23honor a photostatic or electronic copy of this Consent and

 

 

SB3971- 26 -LRB102 24625 BMS 33863 b

1Authorization. Disclosure is strictly limited to the
2Department identified above and no other person or entity
3shall receive my financial records pursuant to this Consent
4and Authorization. By signing this form, I agree to indemnify
5and hold the Financial Institution harmless from any and all
6claims, demands, and losses, including reasonable attorneys
7fees and expenses, arising from or incurred in its reliance on
8this Consent and Authorization. As used herein, "Customer"
9shall mean "Member" if the Financial Institution is a credit
10union.
 
11....................... ...................... 
12(Date)                  (Signature of Customer)             
 
13                         ...................... 
14                         ...................... 
15                         (Address of Customer) 
 
16                         ...................... 
17                         (Customer's birth date) 
18                         (month/day/year) 
 
19The undersigned witness certifies that .................,
20known to me to be the same person whose name is subscribed as
21the customer to the foregoing Consent and Authorization,
22appeared before me and the notary public and acknowledged

 

 

SB3971- 27 -LRB102 24625 BMS 33863 b

1signing and delivering the instrument as his or her free and
2voluntary act for the uses and purposes therein set forth. I
3believe him or her to be of sound mind and memory. The
4undersigned witness also certifies that the witness is not an
5owner, operator, or relative of an owner or operator of a
6long-term care facility in which the customer is a patient or
7resident.
 
8Dated: ................. ...................... 
9                         (Signature of Witness) 
 
10                         ...................... 
11                         (Print Name of Witness) 
 
12                         ...................... 
13                         ...................... 
14                         (Address of Witness) 
 
15State of Illinois)
16                 ) ss.
17County of .......)
 
18The undersigned, a notary public in and for the above county
19and state, certifies that .........., known to me to be the
20same person whose name is subscribed as the customer to the
21foregoing Consent and Authorization, appeared before me

 

 

SB3971- 28 -LRB102 24625 BMS 33863 b

1together with the witness, .........., in person and
2acknowledged signing and delivering the instrument as the free
3and voluntary act of the customer for the uses and purposes
4therein set forth.
 
5Dated:.......................................................
6Notary Public:...............................................
7My commission expires:.......................................
 
8        (b) In no event shall the savings bank distribute the
9    customer's financial records to the long-term care
10    facility from which the customer seeks initial or
11    continuing residency or long-term care services.
12        (c) A savings bank providing financial records of a
13    customer in good faith relying on a consent and
14    authorization executed and tendered in accordance with
15    this paragraph (18) shall not be liable to the customer or
16    any other person in relation to the savings bank's
17    disclosure of the customer's financial records to the
18    Department. The customer signing the consent and
19    authorization shall indemnify and hold the savings bank
20    harmless that relies in good faith upon the consent and
21    authorization and incurs a loss because of such reliance.
22    The savings bank recovering under this indemnification
23    provision shall also be entitled to reasonable attorney's
24    fees and the expenses of recovery.

 

 

SB3971- 29 -LRB102 24625 BMS 33863 b

1        (d) A savings bank shall be reimbursed by the customer
2    for all costs reasonably necessary and directly incurred
3    in searching for, reproducing, and disclosing a customer's
4    financial records required or requested to be produced
5    pursuant to any consent and authorization executed under
6    this paragraph (18). The requested financial records shall
7    be delivered to the Department within 10 days after
8    receiving a properly executed consent and authorization or
9    at the earliest practicable time thereafter if the
10    requested records cannot be delivered within 10 days, but
11    delivery may be delayed until the final reimbursement of
12    all costs is received by the savings bank. The savings
13    bank may honor a photostatic or electronic copy of a
14    properly executed consent and authorization.
15        (e) Nothing in this paragraph (18) shall impair,
16    abridge, or abrogate the right of a customer to:
17            (1) directly disclose his or her financial records
18        to the Department or any other person; or
19            (2) authorize his or her attorney or duly
20        appointed agent to request and obtain the customer's
21        financial records and disclose those financial records
22        to the Department.
23        (f) For purposes of this paragraph (18), "Department"
24    means the Department of Human Services and the Department
25    of Healthcare and Family Services or any successor
26    administrative agency of either agency.

 

 

SB3971- 30 -LRB102 24625 BMS 33863 b

1    (d) A savings bank may not disclose to any person, except
2to the member or holder of capital or his duly authorized
3agent, any financial records relating to that member or
4shareholder of the savings bank unless:
5        (1) the member or shareholder has authorized
6    disclosure to the person; or
7        (2) the financial records are disclosed in response to
8    a lawful subpoena, summons, warrant, citation to discover
9    assets, or court order that meets the requirements of
10    subsection (e) of this Section.
11    (e) A savings bank shall disclose financial records under
12subsection (d) of this Section pursuant to a lawful subpoena,
13summons, warrant, citation to discover assets, or court order
14only after the savings bank sends mails a copy of the subpoena,
15summons, warrant, citation to discover assets, or court order
16to the person establishing the relationship with the savings
17bank, if living, and otherwise, the person's his personal
18representative, if known, at the person's his last known
19address by first class mail, postage prepaid, through a
20third-party commercial carrier or courier with delivery charge
21fully prepaid, by hand delivery, or by electronic delivery at
22an email address on file with the savings bank (if the person
23establishing the relationship with the savings bank has
24consented to receive electronic delivery and, if the person
25establishing the relationship with the savings bank is a
26consumer, the person has consented under the consumer consent

 

 

SB3971- 31 -LRB102 24625 BMS 33863 b

1provisions set forth in Section 7001 of Title 15 of the United
2States Code), unless the savings bank is specifically
3prohibited from notifying the person by order of court.
4    (f) Any officer or employee of a savings bank who
5knowingly and willfully furnishes financial records in
6violation of this Section is guilty of a business offense and,
7upon conviction, shall be fined not more than $1,000.
8    (g) Any person who knowingly and willfully induces or
9attempts to induce any officer or employee of a savings bank to
10disclose financial records in violation of this Section is
11guilty of a business offense and, upon conviction, shall be
12fined not more than $1,000.
13    (h) If any member or shareholder desires to communicate
14with the other members or shareholders of the savings bank
15with reference to any question pending or to be presented at an
16annual or special meeting, the savings bank shall give that
17person, upon request, a statement of the approximate number of
18members or shareholders entitled to vote at the meeting and an
19estimate of the cost of preparing and mailing the
20communication. The requesting member shall submit the
21communication to the Commissioner who, upon finding it to be
22appropriate and truthful, shall direct that it be prepared and
23mailed to the members upon the requesting member's or
24shareholder's payment or adequate provision for payment of the
25expenses of preparation and mailing.
26    (i) A savings bank shall be reimbursed for costs that are

 

 

SB3971- 32 -LRB102 24625 BMS 33863 b

1necessary and that have been directly incurred in searching
2for, reproducing, or transporting books, papers, records, or
3other data of a customer required to be reproduced pursuant to
4a lawful subpoena, warrant, citation to discover assets, or
5court order.
6    (j) Notwithstanding the provisions of this Section, a
7savings bank may sell or otherwise make use of lists of
8customers' names and addresses. All other information
9regarding a customer's account is subject to the disclosure
10provisions of this Section. At the request of any customer,
11that customer's name and address shall be deleted from any
12list that is to be sold or used in any other manner beyond
13identification of the customer's accounts.
14(Source: P.A. 99-143, eff. 7-27-15; 100-22, eff. 1-1-18;
15100-201, eff. 8-18-17; 100-664, eff. 1-1-19.)
 
16    (205 ILCS 205/9011)  (from Ch. 17, par. 7309-11)
17    Sec. 9011. Record keeping and retention of records by a
18savings bank.
19    (a) Each savings bank shall retain its records in a manner
20consistent with prudent business practices and in accordance
21with this Act and applicable State or federal laws, rules, and
22regulations. The record retention system utilized must be able
23to accurately produce such records. is required to maintain
24appropriate books and records, as required by the Secretary,
25that are in accordance with generally accepted accounting

 

 

SB3971- 33 -LRB102 24625 BMS 33863 b

1principles and the requirements of its insurer of accounts.
2All books and records shall be current, complete, organized,
3and accessible to the Secretary, the Secretary's agents and
4examiners, and to the savings bank's auditors and accountants.
5    (a-5) Except where a retention period is required by State
6or federal laws, rules, or regulations, a savings bank may
7destroy its records subject to the considerations set forth in
8subsection (a). In the destruction of records, the savings
9bank shall take reasonable precautions to ensure the
10confidentiality of information in the records.
11    (b) Each savings bank shall implement internal control and
12security measures for its data processing activities. A
13contract with a data processing service or for data processing
14services must provide that records maintained shall at all
15times be available for examination and audit by the Secretary.
16    (c) The Secretary may further regulate these matters by
17the promulgation of rules concerning data processing. As used
18herein, "data processing" means all electronic or automated
19systems of communication and data processing by computer.
20    (d) Unless a federal law requires otherwise, the Secretary
21may by regulation prescribe periods of time for which savings
22banks operating under this Act must retain records and after
23the expiration of which, the savings bank may destroy those
24records. No liability shall accrue against the savings bank,
25the Secretary, or this State for destruction of records
26according to regulations of the Secretary promulgated under

 

 

SB3971- 34 -LRB102 24625 BMS 33863 b

1the authority of this Section. In any cause or proceeding in
2which any records may be called in question or be demanded by
3any savings bank, a showing of the expiration of the period so
4prescribed shall be sufficient excuse for failure to produce
5them.
6(Source: P.A. 97-492, eff. 1-1-12.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.