HB0742 Engrossed LRB104 04637 BAB 14664 b
1		AN ACT concerning regulation.
2		Be it enacted by the People of the State of Illinois,
3		represented in the General Assembly:
4		Article 1. General Provisions
5		Section 1-1. Short title. This Act may be cited as the
6		Digital Assets and Consumer Protection Act.
7		Section 1-5. Definitions.
8		(a) As used in this Act:
9		"Affiliate" means any person that controls, is controlled
10		by, or is under common control with another person. For
11		purposes of this definition, "control" means the possession,
12		direct or indirect, of the power to direct or cause the
13		direction of the management and policies of a person.
14		"Applicant" means a person that applies for registration
15		under this Act.
16		"Bank" means a bank, savings banks, savings and loan
17		association, savings association, or industrial loan company
18		chartered under the laws of this State or any other state or
19		under the laws of the United States.
20		"Confidential supervisory information" means information
21		or documents obtained by employees, agents, or representatives
22		of the Department in the course of any examination,

HB0742 Engrossed - 2 - LRB104 04637 BAB 14664 b
1		investigation, audit, visit, registration, certification,
2		review, licensing, or any other regulatory or supervisory
3		activity pursuant to this Act, and any record prepared or
4		obtained by the Department to the extent that the record
5		summarizes or contains information derived from any report,
6		document, or record described in this Act.
7		"Conflict of interest" means an interest that might
8		incline a covered person or an individual who is an associated
9		person of a covered person to make a recommendation that is not
10		disinterested.
11		"Corporate fiduciary" shall mean a corporate fiduciary as
12		defined by Section 1-5.05 of the Corporate Fiduciary Act.
13		"Covered person" means a registrant or person required to
14		register pursuant to this Act.
15		"Covered exchange" means a covered person that exchanges
16		or holds itself out as being able to exchange a digital asset
17		for a resident.
18		"Credit union" means a credit union chartered under the
19		laws of this State or any other state or under the laws of the
20		United States.
21		"Department" means the Department of Financial and
22		Professional Regulation.
23		"Digital asset" means a digital representation of value
24		that is used as a medium of exchange, unit of account, or store
25		of value, and that is not fiat currency, whether or not
26		denominated in fiat currency. "Digital asset" does not include

HB0742 Engrossed - 3 - LRB104 04637 BAB 14664 b
1		any of the following:
2		(1) A digital representation of value which a merchant
3		grants, as part of an affinity or rewards program, and
4		that cannot be taken from or exchanged with the merchant
5		for fiat currency or a digital asset.
6		(2) A digital representation of value that is issued
7		by or on behalf of a game publisher, used solely within a
8		gaming platform, has no market or application outside of
9		such gaming platform, and cannot be converted into, or
10		redeemed for, fiat currency or digital assets.
11		(3) A digital representation of value that is used as
12		part of prepaid cards.
13		"Digital asset administration" means controlling,
14		administering, or issuing a digital asset. "Digital asset
15		administration" does not include the issuance of a
16		non-fungible token in and of itself.
17		"Digital asset business activity" means any of the
18		following:
19		(1) Exchanging, transferring, or storing a digital
20		asset.
21		(2) Engaging in digital asset administration.
22		(3) Any other business activity involving digital
23		assets designated by rule by the Department as may be
24		necessary and appropriate for the protection of residents.
25		"Digital asset business activity" does not include (1)
26		peer-to-peer exchanges or transfers of digital assets, (2)

HB0742 Engrossed - 4 - LRB104 04637 BAB 14664 b
1		decentralized exchanges facilitating peer-to-peer exchanges or
2		transfers solely through use of a computer program or a
3		transaction protocol that is intended to automatically
4		execute, control, or document events and actions, and (3) the
5		development and dissemination of software in and of itself.
6		"Exchange", when used as a verb, means to exchange, buy,
7		sell, trade, or convert, on behalf of a resident, either of the
8		following:
9		(1) A digital asset for fiat currency or one or more
10		forms of digital assets.
11		(2) Fiat currency for one or more forms of digital
12		assets.
13		"Exchange" does not include buying, selling, or trading
14		digital assets for a person's own account in a principal
15		capacity.
16		"Executive officer" includes, without limitation, an
17		individual who is a director, officer, manager, managing
18		member, partner, or trustee, or other functionally equivalent
19		responsible individual, of a person.
20		"Federally insured depository institution" shall mean an
21		insured depository institution as defined by Section 3(c)(2)
22		of the Federal Deposit Insurance Act, 12 U.S.C. 1813(c)(2), as
23		amended, or an insured credit union as defined by Section
24		101(7) of the Federal Credit Union Act, 12 U.S.C. 1752(7), as
25		amended.
26		"Fiat currency" means a medium of exchange or unit of

HB0742 Engrossed - 5 - LRB104 04637 BAB 14664 b
1		value issued by the United States or a foreign government and
2		that is designated as legal tender in its country of issuance.
3		"Insolvent" means any of the following:
4		(1) Having generally ceased to pay debts in the
5		ordinary course of business other than as a result of a
6		bona fide dispute.
7		(2) Being unable to pay debts as they become due.
8		(3) Being insolvent within the meaning of federal
9		bankruptcy law.
10		"Non-fungible token" means any unique digital identifier
11		on any blockchain or digital asset network used to certify
12		authenticity and ownership rights that is not readily
13		exchangeable or replaceable with a mutually interchangeable
14		digital asset of the same value. The Department may modify
15		this definition by rule.
16		"Person" includes, without limitation, any individual,
17		corporation, business trust, estate, trust, partnership,
18		proprietorship, syndicate, limited liability company,
19		association, joint venture, government, governmental
20		subsection, agency or instrumentality, public corporation or
21		joint stock company, or any other organization or legal or
22		commercial entity.
23		"Prepaid card" means an electronic payment device that,
24		subject to any rules adopted by the Department:
25		(1) is usable at a single merchant or an affiliated
26		group of merchants that share the same name, mark, or

HB0742 Engrossed - 6 - LRB104 04637 BAB 14664 b
1		logo, or is usable at multiple, unaffiliated merchants or
2		service providers;
3		(2) is issued in and for a specified amount of fiat
4		currency;
5		(3) can be reloaded in and for only fiat currency, if
6		at all;
7		(4) is issued or reloaded on a prepaid basis for the
8		future purchase or delivery of goods or services;
9		(5) is honored upon presentation;
10		(6) can be redeemed in and for only fiat currency, if
11		at all;
12		(7) is governed by the Uniform Money Transmission
13		Modernization Act; and
14		(8) complies with any other condition designated by
15		rule by the Department as may be necessary and appropriate
16		for the protection of residents.
17		"Qualified custodian" means a bank, credit union, or trust
18		company, subject to any rules adopted by the Department.
19		"Record" means information that is inscribed on a tangible
20		medium or that is stored in an electronic or other medium and
21		is retrievable in perceivable form.
22		"Registrant" means a person registered under this Act.
23		"Resident" means any of the following:
24		(1) A person who is domiciled in this State.
25		(2) A person who is physically located in this State
26		for more than 183 days of the previous 365 days.

HB0742 Engrossed - 7 - LRB104 04637 BAB 14664 b
1		(3) A person who has a place of business in this State.
2		(4) A legal representative of a person that is
3		domiciled in this State.
4		"Request for assistance" means all inquiries, complaints,
5		account disputes, and requests for documentation a covered
6		person receives from residents.
7		"Responsible individual" means an individual who has
8		direct control over, or significant management, policy, or
9		decision-making authority with respect to, a person's digital
10		asset business activity in this State.
11		"Secretary" means the Secretary of Financial and
12		Professional Regulation and any authorized representative of
13		the Secretary.
14		"Service provider" means any person that provides a
15		material service to a covered person in connection with the
16		offering or provision by that covered person of a digital
17		asset business activity in this State, including a person that
18		either:
19		(1) Participates in designing, operating, or
20		maintaining the digital asset business activity.
21		(2) Processes transactions relating to the digital
22		asset business activity, other than unknowingly or
23		incidentally transmitting or processing financial data in
24		a manner that the data is undifferentiated from other
25		types of data of the same form as the person transmits or
26		processes.

HB0742 Engrossed - 8 - LRB104 04637 BAB 14664 b
1		"State" means a state of the United States, the District
2		of Columbia, Puerto Rico, the United States Virgin Islands, or
3		any territory or insular possession subject to the
4		jurisdiction of the United States.
5		"Store," "storage", and "storing", except in the phrase
6		"store of value," means to store, hold, or maintain custody or
7		control of a digital asset on behalf of a resident by a person
8		other than the resident.
9		"Transfer" means to transfer or transmit a digital asset
10		on behalf of a resident, including by doing any of the
11		following:
12		(1) Crediting the digital asset to the account or
13		storage of another person.
14		(2) Moving the digital asset from one account or
15		storage of a resident to another account or storage of the
16		same resident.
17		(3) Relinquishing custody or control of a digital
18		asset to another person.
19		"United States dollar equivalent of digital assets" means
20		the equivalent value of a particular digital asset in United
21		States dollars shown on a covered exchange regulated in the
22		United States for a particular date or period specified in
23		this Act, subject to any rules adopted by the Department.
24		(b) Whenever the terms "include", "including" or terms of
25		similar import appear in this Act, unless the context requires
26		otherwise, such terms shall not be construed to imply the

HB0742 Engrossed - 9 - LRB104 04637 BAB 14664 b
1		exclusion of any person, class, or thing not specifically
2		included.
3		(c) A reference in this Act to any other law or statute of
4		this State, or of any other jurisdiction, means such law or
5		statute as amended to the effective date of this Act, and
6		unless the context otherwise requires, as amended thereafter.
7		(d) Any reference to this Act shall include any rules
8		adopted in accordance with this Act.
9		Section 1-10. Applicability.
10		(a) This Act governs the digital asset business activity
11		of a person doing business in this State or, wherever located,
12		who engages in or holds itself out as engaging in the activity
13		with or on behalf of a resident, to the extent not preempted by
14		federal law and except as otherwise provided in subsections
15		(b), (c), (d), or (e).
16		(b)(1) This Act does not apply to the exchange, transfer,
17		or storage of a digital asset or to digital asset
18		administration to the extent that:
19		(A) the Securities Exchange Act of 1934, 15 U.S.C.
20		78a et seq., or the Illinois Securities Law of 1953
21		govern the activity as a security transaction and the
22		activity is regulated by the U.S. Securities and
23		Exchange Commission or the Illinois Secretary of
24		State; or
25		(B) the Commodity Exchange Act, 7 U.S.C. 1 et

HB0742 Engrossed - 10 - LRB104 04637 BAB 14664 b
1		seq., governs the activity, the activity is in
2		connection with trading of a contract of sale of a
3		commodity for future delivery, an option on such a
4		contract or a swap, and the activity is regulated by
5		the U.S. Commodity Futures Trading Commission.
6		(2) This subsection shall be construed in a manner
7		consistent with affording the greatest protection to
8		residents and the Department's authority under subsection
9		(a) of Section 1-15 to exercise nonexclusive oversight and
10		enforcement under any federal law applicable to digital
11		asset business activity. This subsection shall not be
12		construed to exempt an activity solely because a financial
13		regulatory agency has anti-fraud and anti-manipulation
14		enforcement authority over the activity.
15		(c) This Act does not apply to the following persons:
16		(1) The United States, a State, political subdivision
17		of a State, agency, or instrumentality of federal, State,
18		or local government, or a foreign government or a
19		subdivision, department, agency, or instrumentality of a
20		foreign government.
21		(2) A federally insured depository institution.
22		(3) A corporate fiduciary acting as a fiduciary or
23		otherwise engaging in fiduciary activities.
24		(4) A merchant using digital assets solely for the
25		purchase or sale of goods or services, excluding the sale
26		of purchase of digital assets, in the ordinary course of

HB0742 Engrossed - 11 - LRB104 04637 BAB 14664 b
1		its business.
2		(5) A person using digital assets solely for the
3		purchase or sale of goods or services for his or her own
4		personal, family, or household purposes.
5		(6) A credit union with member share accounts insured
6		by an insurer approved by the credit union's primary
7		financial regulatory agency. An out-of-state credit union
8		may not conduct any activity in this State that is not
9		authorized for a credit union chartered under the laws of
10		this State.
11		Nothing in this Act grants persons described in this
12		subsection (c) authority to engage in any activity not
13		otherwise granted under existing law.
14		(d) The Department may by rule or order clarify whether an
15		activity is governed under this Act or another Act that
16		governs money transmission. This subsection (d) shall not be
17		applied in a manner inconsistent with the protection of
18		residents.
19		(e) Notwithstanding any other provision of this Act, the
20		Department, by rule or order, may conditionally or
21		unconditionally exempt any person, digital asset, or
22		transaction, or any class or classes of persons, digital
23		assets, or transactions, from any provision of this Act or of
24		any rule thereunder, to the extent that the exemption is
25		necessary or appropriate, in the public interest, and
26		consistent with the protection of residents.

HB0742 Engrossed - 12 - LRB104 04637 BAB 14664 b
1		Section 1-15. General powers and duties.
2		(a) The Department shall regulate digital asset business
3		activity in this State, unless it is exempt pursuant to
4		Section 1-10. To the extent permissible under federal law, the
5		Department shall exercise nonexclusive oversight and
6		enforcement under any federal law applicable to digital asset
7		business activity.
8		(b) The functions, powers, and duties conferred upon the
9		Department by this Act are cumulative to any other functions,
10		powers, and duties conferred upon the Department by other laws
11		applicable to digital asset business activity.
12		(c) The Department shall have the following functions,
13		powers, and duties in carrying out its responsibilities under
14		this Act and any other law applicable to digital asset
15		business activity in this State:
16		(1) to issue or refuse to issue any registration or
17		other authorization under this Act;
18		(2) to revoke or suspend for cause any registration or
19		other authorization under this Act;
20		(3) to keep records of all registrations or other
21		authorizations under this Act;
22		(4) to receive, consider, investigate, and act upon
23		complaints made by any person relating to any digital
24		asset business activity in this State;
25		(5) to prescribe the forms of and receive:

HB0742 Engrossed - 13 - LRB104 04637 BAB 14664 b
1		(A) applications for registrations or other
2		authorizations under this Act; and
3		(B) all reports and all books and records required
4		to be made under this Act;
5		(6) to subpoena documents and witnesses and compel
6		their attendance and production, to administer oaths, and
7		to require the production of any books, papers, or other
8		materials relevant to any inquiry authorized by this Act
9		or other law applicable to digital asset business activity
10		in this State;
11		(7) to issue orders against any person:
12		(A) if the Secretary has reasonable cause to
13		believe that an unsafe, unsound, or unlawful practice
14		has occurred, is occurring, or is about to occur;
15		(B) if any person has violated, is violating, or
16		is about to violate any law, rule, or written
17		agreement with the Secretary; or
18		(C) for the purpose of administering the
19		provisions of this Act or other law applicable to
20		digital asset business activity and any rule adopted
21		in accordance with this Act or other law applicable to
22		digital asset business activity;
23		(8) to address any inquiries to any covered person, or
24		the directors, officers, or employees of the covered
25		person, or the affiliates or service providers of the
26		covered person, in relation to the covered person's

HB0742 Engrossed - 14 - LRB104 04637 BAB 14664 b
1		activities and conditions or any other matter connected
2		with its affairs, and it shall be the duty of any person so
3		addressed to promptly reply in writing to those inquiries;
4		the Secretary may also require reports from any covered
5		person at any time the Secretary chooses;
6		(9) to examine the books and records of every covered
7		person, affiliate, or service provider;
8		(10) to enforce the provisions of this Act and any
9		state or federal law applicable to digital asset business
10		activity;
11		(11) to levy fees, fines, and civil penalties, charges
12		for services, and assessments to defray operating
13		expenses, including direct and indirect costs, of
14		administering this Act and other laws applicable to
15		digital asset business activity;
16		(12) to appoint examiners, supervisors, experts, and
17		special assistants as needed to effectively and
18		efficiently administer this Act and other laws applicable
19		to digital asset business activity;
20		(13) to conduct hearings for the purpose of carrying
21		out the purposes of this Act;
22		(14) to exercise visitorial power over a covered
23		person, affiliate, or service provider;
24		(15) to enter into cooperative agreements with federal
25		and state regulatory authorities and to accept reports of
26		examinations from federal and state regulatory

HB0742 Engrossed - 15 - LRB104 04637 BAB 14664 b
1		authorities;
2		(16) to assign on an emergency basis an examiner or
3		examiners to monitor the affairs of a covered person,
4		affiliate, or service provider with whatever frequency the
5		Secretary determines appropriate and to charge the covered
6		person for reasonable and necessary expenses of the
7		Secretary if in the opinion of the Secretary an emergency
8		exists or appears likely to occur;
9		(17) to impose civil penalties against a covered
10		person, affiliate, or service provider for failing to
11		respond to a regulatory request or reporting requirement;
12		and
13		(18) to conduct investigations, market surveillance,
14		and research, studies, and analyses of matters affecting
15		the interests of users of digital assets;
16		(19) to take such actions as the Secretary deems
17		necessary to educate and protect users of digital assets;
18		(20) to develop and implement initiatives and programs
19		to promote responsible innovation in digital asset
20		business activity; and
21		(21) to perform any other lawful acts necessary or
22		desirable to carry out the purposes and provisions of this
23		Act and other laws applicable to digital asset business
24		activity.
25		(d) The Department may share any information obtained
26		pursuant to this Act or any other law applicable to digital

HB0742 Engrossed - 16 - LRB104 04637 BAB 14664 b
1		asset business activity with law enforcement officials or
2		other regulatory agencies.
3		Section 1-20. Funds.
4		(a) All moneys collected or received by the Department
5		under this Act shall be deposited into the Consumer Protection
6		Fund, which is hereby created as a special fund in the State
7		treasury. The amounts deposited into the Consumer Protection
8		Fund shall be used for the ordinary and contingent expenses of
9		the Department in administering this Act and other financial
10		laws; nothing in this Act shall prevent the continuation of
11		the practice of paying expenses involving salaries,
12		retirement, social security, and State-paid insurance of State
13		officers and employees by appropriation from the General
14		Revenue Fund or any other fund. Moneys deposited into the
15		Consumer Protection Fund may be transferred to the Professions
16		Indirect Cost Fund or any other Department fund.
17		(b) The expenses of administering this Act, including
18		investigations and examinations provided for in this Act,
19		shall be borne by and assessed against persons regulated by
20		this Act. The Department may establish fees by rule, including
21		in the following categories:
22		(1) investigation of registrants and registration
23		applicant fees;
24		(2) examination fees;
25		(3) contingent fees; and

HB0742 Engrossed - 17 - LRB104 04637 BAB 14664 b
1		(4) such other categories as may be required to
2		administer this Act.
3		(c) The Department shall charge and collect fees from
4		covered persons, which shall be nonrefundable unless otherwise
5		indicated, for the expenses of administering this Act as
6		follows:
7		(1) Each covered person shall pay $150 for each hour
8		or part of an hour for each examiner or staff assigned to
9		the supervision of the covered person plus actual travel
10		costs for any examination of digital asset business
11		activity pursuant to the Act.
12		(2) Each covered person shall pay to the Department
13		its pro rata share of the cost for administration of this
14		Act that exceeds other fees listed in this Act, as
15		estimated by the Department, for the current year and any
16		deficit actually incurred in the administration of the Act
17		in prior years. The total annual assessment for all
18		registrants shall initially be divided into a
19		transaction-based assessment and a custody-based
20		assessment, each equal to approximately half the cost for
21		administration of this Act. Each registrant's pro rata
22		share of the transaction-based assessment shall be the
23		percentage that the total volume of digital asset
24		transactions conducted on behalf of residents by the
25		registrant bears to the total volume of digital asset
26		transactions by all registrants in Illinois. Each

HB0742 Engrossed - 18 - LRB104 04637 BAB 14664 b
1		registrant's pro rata share of the custody-based
2		assessment shall be the percentage that the total United
3		States dollar value of digital assets held in custody or
4		controlled by the registrant for residents bears to the
5		total United States dollar value held in custody or
6		controlled by all registrants in Illinois for residents.
7		(3) Beginning one year after the effective date of
8		this Act, the Department may, by rule, amend the fees set
9		forth in this subsection in accordance with this Act. The
10		Department is authorized to consider setting fees for
11		digital asset business activity based on the value of
12		digital assets transacted by covered persons, volume of
13		digital assets transacted by covered persons, the value of
14		digital assets held in custody by covered person, and the
15		volume of digital assets held in custody by covered
16		persons.
17		Article 5. Customer Protections
18		Section 5-5. Customer disclosures.
19		(a) When engaging in digital asset business activity with
20		a resident, a covered person shall provide to a resident the
21		customer disclosures required by subsection (b) and any
22		additional disclosures the Department by rule determines to be
23		necessary and appropriate for the protection of residents. The
24		Department may determine by rule the time and form required

HB0742 Engrossed - 19 - LRB104 04637 BAB 14664 b
1		for disclosures. A disclosure required by this Section shall
2		be made separately from any other information provided by the
3		covered person and in a clear and conspicuous manner in a
4		record the resident may keep.
5		(b) Before engaging in digital asset business activity
6		with a resident, a covered person shall disclose, to the
7		extent applicable to the digital asset business activity the
8		covered person will undertake with the resident, subject to
9		any rule or order issued by the Department, all of the
10		following:
11		(1) A schedule of fees and charges the covered person
12		may assess, the manner by which fees and charges will be
13		calculated if they are not set in advance and disclosed,
14		and the timing of the fees and charges.
15		(2) Whether the product or service provided by the
16		covered person is covered by either of the following:
17		(A) A form of insurance or other guarantee against
18		loss by an agency of the United States as follows:
19		(i) Up to the full United States dollar
20		equivalent of digital assets placed under the
21		custody or control of, or purchased from, the
22		covered person as of the date of the placement or
23		purchase, including the maximum amount provided by
24		insurance under the Federal Deposit Insurance
25		Corporation or National Credit Union
26		Administration or otherwise available from the

HB0742 Engrossed - 20 - LRB104 04637 BAB 14664 b
1		Securities Investor Protection Corporation.
2		(ii) If not provided at the full United States
3		dollar equivalent of the digital assets placed
4		under the custody or control of or purchased from
5		the covered person, the maximum amount of coverage
6		for each resident expressed in the United States
7		dollar equivalent of the digital asset.
8		(iii) If not applicable to the product or
9		service provided by the covered person, a clear
10		and conspicuous statement that the product is not
11		insured, as applicable, by the Federal Deposit
12		Insurance Corporation, National Credit Union
13		Administration, or the Securities Investor
14		Protection Corporation.
15		(B)(i) Private insurance against loss or theft,
16		including cybertheft or theft by other means.
17		(ii) A covered person shall disclose the terms
18		of the insurance policy to the resident in a
19		manner that allows the resident to understand the
20		specific insured risks that may result in partial
21		coverage of the resident's assets.
22		(3) The irrevocability of a transfer or exchange and
23		any exception to irrevocability.
24		(4) A description of all of the following:
25		(A) The covered person's liability for an
26		unauthorized, mistaken, or accidental transfer or

HB0742 Engrossed - 21 - LRB104 04637 BAB 14664 b
1		exchange.
2		(B) The resident's responsibility to provide
3		notice to the covered person of an unauthorized,
4		mistaken, or accidental transfer or exchange.
5		(C) The basis for any recovery by the resident
6		from the covered person in case of an unauthorized,
7		mistaken, or accidental transfer or exchange.
8		(D) General error resolution rights applicable to
9		an unauthorized, mistaken, or accidental transfer or
10		exchange.
11		(E) The method for the resident to update the
12		resident's contact information with the covered
13		person.
14		(5) That the date or time when the transfer or
15		exchange is made and the resident's account is debited may
16		differ from the date or time when the resident initiates
17		the instruction to make the transfer or exchange.
18		(6) Whether the resident has a right to stop a
19		preauthorized payment or revoke authorization for a
20		transfer and the procedure to initiate a stop-payment
21		order or revoke authorization for a subsequent transfer.
22		(7) The resident's right to receive a receipt, trade
23		ticket, or other evidence of the transfer or exchange.
24		(8) The resident's right to at least 14 days' prior
25		notice of a change in the covered person's fee schedule,
26		other terms and conditions that have a material impact on

HB0742 Engrossed - 22 - LRB104 04637 BAB 14664 b
1		digital asset business activity with the resident, or the
2		policies applicable to the resident's account.
3		(9) That no digital asset is currently recognized as
4		legal tender by the State of Illinois or the United
5		States.
6		(10)(A) A list of instances in the past 12 months when
7		the covered person's service was unavailable to customers
8		seeking to engage in digital asset business activity due
9		to a service outage on the part of the covered person and
10		the causes of each identified service outage.
11		(B) As part of the disclosure required by this
12		paragraph, the covered person may list any steps the
13		covered person has taken to resolve underlying causes
14		for those outages.
15		(11) A disclosure, provided separately from the
16		disclosures provided pursuant to paragraphs (1) to (10) of
17		this subsection and written prominently in bold type, that
18		the State of Illinois has not approved or endorsed any
19		digital assets or determined if this customer disclosure
20		is truthful or complete.
21		(c) Except as otherwise provided in subsection (d), at the
22		conclusion of a digital asset transaction with, or on behalf
23		of, a resident, a covered person shall provide the resident a
24		confirmation in a record which contains all of the following:
25		(1) The name and contact information of the covered
26		person, including the toll-free telephone number required

HB0742 Engrossed - 23 - LRB104 04637 BAB 14664 b
1		under Section 5-20.
2		(2) The type, value, date, precise time, and amount of
3		the transaction.
4		(3) The fee charged for the transaction, including any
5		charge for conversion of a digital asset to fiat currency
6		or other digital asset, as well as any indirect charges.
7		(d) If a covered person discloses that it will provide a
8		daily confirmation in the initial disclosure under subsection
9		(c), the covered person may elect to provide a single, daily
10		confirmation for all transactions with or on behalf of a
11		resident on that day instead of a per transaction
12		confirmation.
13		Section 5-10. Custody and protection of customer assets.
14		(a) A covered person that stores, holds, or maintains
15		custody or control of a digital asset for one or more persons
16		shall:
17		(1) at all times maintain an amount of each type of
18		digital asset sufficient to satisfy the aggregate
19		entitlements of the persons to the type of digital asset;
20		(2) segregate such digital assets from the other
21		assets of the covered person; and
22		(3) not sell, transfer, assign, lend, hypothecate,
23		pledge, or otherwise use or encumber such digital assets,
24		except for the sale, transfer, or assignment of such
25		digital assets at the direction of such other persons.

HB0742 Engrossed - 24 - LRB104 04637 BAB 14664 b
1		(b) If a covered person violates subsection (a), then the
2		property interests of the persons in the digital asset are pro
3		rata property interests in the type of digital asset to which
4		the persons are entitled without regard to the time the
5		persons became entitled to the digital asset or the covered
6		person obtained control of the digital asset.
7		(c) A digital asset subject to this Section is:
8		(1) held for the persons entitled to the digital asset
9		under subsection (a);
10		(2) not the property of the covered person; and
11		(3) not subject to the claims of creditors of the
12		covered person.
13		(d) Digital assets subject to this Section, even if
14		commingled with other assets of the covered person, are held
15		in trust for the benefit of the persons entitled to the digital
16		assets under subsection (a), in the event of insolvency, the
17		filing of a petition by or against the covered person under the
18		United States Bankruptcy Code (11 U.S.C. 101 et seq.) for
19		bankruptcy or reorganization, the filing of a petition by or
20		against the covered person for receivership, the commencement
21		of any other judicial or administrative proceeding for its
22		dissolution or reorganization, or an action by a creditor
23		against the covered person who is not a beneficiary of this
24		statutory trust. No digital asset impressed with a trust
25		pursuant to this subsection shall be subject to attachment,
26		levy of execution, or sequestration by order of any court,

HB0742 Engrossed - 25 - LRB104 04637 BAB 14664 b
1		except for a beneficiary of this statutory trust.
2		(e) The Department may adopt rules applicable to covered
3		persons related to additional protections of customer assets,
4		including, but not limited to:
5		(1) rules requiring that digital assets and funds
6		controlled by the covered person on behalf of residents be
7		held in accounts segregated from the covered person's own
8		digital assets and funds;
9		(2) rules related to qualified custodians that may
10		hold such segregated accounts;
11		(3) rules related to titling of such segregated
12		accounts;
13		(4) rules related to audit requirements for customer
14		assets;
15		(5) rules requiring compliance with specific
16		provisions of the Uniform Commercial Code applicable to
17		digital assets;
18		(6) rules restricting selling, transferring,
19		assigning, lending, hypothecating, pledging, or otherwise
20		using or encumbering customer assets; and
21		(7) any rules as may be as may be necessary and
22		appropriate for the protection of residents or necessary
23		to effectuate the purposes of this Section.
24		Section 5-15. Covered exchanges.
25		(a)(1) Except as provided for under paragraph (2) of this

HB0742 Engrossed - 26 - LRB104 04637 BAB 14664 b
1		subsection, a covered exchange, before listing or offering a
2		digital asset that the covered exchange can exchange on behalf
3		of a resident, shall certify on a form provided by the
4		Department that the covered exchange has done the following:
5		(A) Identified the risk that the digital asset would
6		be deemed a security by federal or state regulators.
7		(B) Provided, in writing, full and fair disclosure of
8		all material facts relating to conflicts of interest that
9		are associated with the covered exchange and the digital
10		asset.
11		(C) Conducted a comprehensive risk assessment designed
12		to ensure consumers are adequately protected from
13		cybersecurity risk, risk of malfeasance, including theft,
14		risks related to code or protocol defects, market-related
15		risks, including price manipulation and fraud, and any
16		other material risks.
17		(D) Established policies and procedures to reevaluate
18		the appropriateness of the continued listing or offering
19		of the digital asset, including an evaluation of whether
20		material changes have occurred.
21		(E) Established policies and procedures to cease
22		listing or offering the digital asset, including
23		notification to affected consumers and counterparties.
24		(F) Any other requirement designated by rule by the
25		Department as may be necessary and appropriate for the
26		protection of residents.

HB0742 Engrossed - 27 - LRB104 04637 BAB 14664 b
1		(2) Certification by a covered exchange shall not be
2		required for any digital asset approved for listing on or
3		before the effective date of this Act by the New York
4		Department of Financial Services pursuant to Part 200 of Title
5		23 of the New York Code of Rules and Regulations, if the
6		covered exchange provides notification to the Department on a
7		form provided by the Department.
8		(3) After a finding that a covered exchange has listed or
9		offered a digital asset without appropriate certification or
10		after a finding that misrepresentations were made in the
11		certification process, the Department may require the covered
12		exchange to cease listing or offering the digital asset and
13		may take an enforcement action under Section 20-50 of this
14		Act.
15		(b)(1) A covered exchange shall make every effort to
16		execute a resident's request to exchange a digital asset that
17		the covered exchange receives fully and promptly.
18		(2)(A) A covered exchange shall use reasonable diligence
19		to ensure that the outcome to the resident is as favorable as
20		possible under prevailing market conditions. Compliance with
21		this paragraph shall be determined by factors, including, but
22		not limited to, all of the following:
23		(i) The character of the market for the digital asset,
24		including price and volatility.
25		(ii) The size and type of transaction.
26		(iii) The number of markets checked.

HB0742 Engrossed - 28 - LRB104 04637 BAB 14664 b
1		(iv) Accessibility of appropriate pricing.
2		(v) Any other factor designated by rule by the
3		Department as may be necessary and appropriate for the
4		protection of residents.
5		(B) At least once every 6 months, a covered exchange shall
6		review aggregated trading records of residents against
7		benchmarks to determine execution quality, investigate the
8		causes of any variance, and promptly take action to remedy
9		issues identified in that review.
10		(3) In a transaction for or with a resident, the covered
11		exchange shall not interject a third party between the covered
12		exchange and the best market for the digital asset in a manner
13		inconsistent with this subsection.
14		(4) If a covered exchange cannot execute directly with a
15		market and employs other means in order to ensure an execution
16		advantageous to the resident, the burden of showing the
17		acceptable circumstances for doing so is on the covered
18		exchange.
19		Section 5-20. Customer service; requests for assistance.
20		(a) A covered person shall prominently display on its
21		internet website a toll-free telephone number through which a
22		resident can contact the covered person for requests for
23		assistance and receive live customer assistance, subject to
24		any rules adopted by the Department.
25		(b) A covered person shall implement reasonable policies

HB0742 Engrossed - 29 - LRB104 04637 BAB 14664 b
1		and procedures for accepting, processing, investigating, and
2		responding to requests for assistance in a timely and
3		effective manner. Such policies and procedures shall include
4		all of the following:
5		(1) A procedure for resolving disputes between the
6		covered person and a resident.
7		(2) A procedure for a resident to report an
8		unauthorized, mistaken, or accidental digital asset
9		business activity transaction.
10		(3) A procedure for a resident to file a complaint
11		with the covered person and for the resolution of the
12		complaint in a fair and timely manner with notice to the
13		resident as soon as reasonably practical of the resolution
14		and the reasons for the resolution.
15		(4) Any other procedure designated by rule by the
16		Department as may be necessary and appropriate for the
17		protection of residents.
18		Section 5-25. Collection of compensation. Unless exempt
19		from registration under this Act, no person engaged in or
20		offering to engage in any act or service for which a
21		registration under this Act is required may bring or maintain
22		any action in any court to collect compensation for the
23		performance of the registrable services without alleging and
24		proving that he or she was the holder of a valid registration
25		under this Act at all times during the performance of those

HB0742 Engrossed - 30 - LRB104 04637 BAB 14664 b
1		services.
2		Article 10. Compliance
3		Section 10-5. General requirements.
4		(a) Each registrant is required to comply with the
5		provisions of this Act, any lawful order, rule, or regulation
6		made or issued under the provisions of this Act, and all
7		applicable federal and State laws, rules, and regulations.
8		(b) Each registrant shall designate a qualified individual
9		or individuals responsible for coordinating and monitoring
10		compliance with subsection (a).
11		(c) Each registrant shall maintain, implement, update, and
12		enforce written compliance policies and procedures, in
13		accordance with Section 10-10 and subject to any rules adopted
14		by the Department, which policies and procedures must be
15		reviewed and approved by the registrant's board of directors
16		or an equivalent governing body of the registrant.
17		Section 10-10. Required policies and procedures.
18		(a) An applicant, before submitting an application, shall
19		create and a registrant, during registration, shall maintain,
20		implement, update, and enforce, written compliance policies
21		and procedures for all of the following:
22		(1) A cybersecurity program.
23		(2) A business continuity program.

HB0742 Engrossed - 31 - LRB104 04637 BAB 14664 b
1		(3) A disaster recovery program.
2		(4) An anti-fraud program.
3		(5) An anti-money laundering and countering the
4		financing of terrorism program.
5		(6) An operational security program.
6		(7)(A) A program designed to ensure compliance with
7		this Act and other laws of this State or federal laws that
8		are relevant to the digital asset business activity
9		contemplated by the registrant with or on behalf of
10		residents and to assist the registrant in achieving the
11		purposes of other State laws and federal laws if violation
12		of those laws has a remedy under this Act.
13		(B) At a minimum, the program described by this
14		paragraph shall specify the policies and procedures that
15		the registrant undertakes to minimize the risk that the
16		registrant facilitates the exchange of unregistered
17		securities.
18		(8) A conflict of interest program.
19		(9) A request for assistance program to comply with
20		Section 5-20.
21		(10) Any other compliance program, policy, or
22		procedure the Department establishes by rule as necessary
23		for the protection of residents or for the safety and
24		soundness of the registrant's business or to effectuate
25		the purposes of this Act.
26		(b) A policy required by subsection (a) shall be

HB0742 Engrossed - 32 - LRB104 04637 BAB 14664 b
1		maintained in a record and designed to be adequate for a
2		registrant's contemplated digital asset business activity with
3		or on behalf of residents, considering the circumstances of
4		all participants and the safe operation of the activity. Any
5		policy and implementing procedure shall be compatible with
6		other policies and the procedures implementing them and not
7		conflict with policies or procedures applicable to the
8		registrant under other State law.
9		(c) A registrant's anti-fraud program shall include, at a
10		minimum, all of the following:
11		(1) Identification and assessment of the material
12		risks of its digital asset business activity related to
13		fraud, which shall include any form of market manipulation
14		and insider trading by the registrant, its employees, its
15		associated persons, or its customers.
16		(2) Protection against any material risk related to
17		fraud identified by the Department or the registrant.
18		(3) Periodic evaluation and revision of the anti-fraud
19		program, policies, and procedures.
20		(d) A registrant's anti-money laundering and countering
21		the financing of terrorism program shall include, at a
22		minimum, all of the following:
23		(1) Identification and assessment of the material
24		risks of its digital asset business activity related to
25		money laundering and financing of terrorist activity.
26		(2) Procedures, in accordance with federal law or

HB0742 Engrossed - 33 - LRB104 04637 BAB 14664 b
1		guidance published by federal agencies responsible for
2		enforcing federal law, pertaining to money laundering and
3		financing of terrorist activity.
4		(3) Filing reports under the Bank Secrecy Act, 31
5		U.S.C. 5311 et seq., or Chapter X of Title 31 of the Code
6		of Federal Regulations and other federal or State law
7		pertaining to the prevention or detection of money
8		laundering or financing of terrorist activity.
9		(e) A registrant's operational security program shall
10		include, at a minimum, reasonable and appropriate
11		administrative, physical, and technical safeguards to protect
12		the confidentiality, integrity, and availability of any
13		nonpublic information or digital asset it receives, maintains,
14		or transmits.
15		(f)(1) A registrant's cybersecurity program shall include,
16		at a minimum, all of the following:
17		(A) Maintaining, updating, and enforcing policies and
18		procedures designed to protect the confidentiality,
19		integrity, and availability of the registrant's
20		information systems and nonpublic information stored on
21		those information systems.
22		(B) Implementing and maintaining a written policy or
23		policies, approved at least annually by an executive
24		officer or the registrant's board of directors, or an
25		appropriate committee thereof, or equivalent governing
26		body, setting forth the registrant's policies and

HB0742 Engrossed - 34 - LRB104 04637 BAB 14664 b
1		procedures for the protection of its information systems
2		and nonpublic information stored on those information
3		systems.
4		(C) Designating a qualified individual responsible for
5		overseeing and implementing the registrant's cybersecurity
6		program and enforcing its cybersecurity policy. The
7		individual must have adequate authority to ensure
8		cybersecurity risks are appropriately managed, including
9		the ability to direct sufficient resources to implement
10		and maintain a cybersecurity program. The individual may
11		be employed by the registrant, one of its affiliates, or a
12		service provider.
13		(2) To assist in carrying out this subsection, the
14		Department may adopt rules to define terms used in this
15		subsection and to establish specific requirements for the
16		required cybersecurity program, including, but not limited to,
17		rules related to:
18		(A) penetration testing and vulnerability assessment;
19		(B) audit trails;
20		(C) access privileges;
21		(D) application security;
22		(E) risk assessment;
23		(F) cybersecurity personnel and intelligence;
24		(G) affiliates and service providers;
25		(H) authentication;
26		(I) data retention;

HB0742 Engrossed - 35 - LRB104 04637 BAB 14664 b
1		(J) training and monitoring;
2		(K) encryption;
3		(L) incident response;
4		(M) notice of cybersecurity events; and
5		(N) any other requirement necessary and appropriate
6		for the protection of residents or for the safety and
7		soundness of the registrant or to effectuate the purposes
8		of this subsection.
9		(g) The Department may require a registrant to file with
10		the Department a copy of any report it makes to a federal or
11		state authority.
12		(h) After the policies and procedures required under this
13		Article are created and approved by the registrant, the
14		registrant shall engage a qualified individual or individuals
15		with adequate authority and experience to monitor and
16		implement each policy and procedure, publicize it as
17		appropriate, recommend changes as necessary, and enforce it.
18		Article 15. Registration
19		Section 15-5. Registration required. A person shall not
20		engage in digital asset business activity, or hold itself out
21		as being able to engage in digital asset business activity,
22		with or on behalf of a resident unless the person is registered
23		in this State by the Department under this Article, or the
24		person is exempt from registration pursuant to Section 1-10.

HB0742 Engrossed - 36 - LRB104 04637 BAB 14664 b
1		Section 15-10. Application.
2		(a) An application for a registration under this Act shall
3		meet all of the following requirements:
4		(1) The application shall be in a form and medium
5		prescribed by the Department. The Department may require
6		the filing of the application through a multistate
7		licensing system.
8		(2) The application shall provide all of the following
9		information relevant to the applicant's proposed digital
10		asset business activity:
11		(A) The legal name of the applicant, any current
12		or proposed business United States Postal Service
13		address of the applicant, and any fictitious or trade
14		name the applicant uses or plans to use in conducting
15		the applicant's digital asset business activity with
16		or on behalf of a resident.
17		(B) The legal name, any former or fictitious name,
18		and the residential and business United States Postal
19		Service address of any executive officer and
20		responsible individual of the applicant and any person
21		that has control of the applicant.
22		(C) A description of the current and former
23		business of the applicant and any affiliate of the
24		applicant for the 5 years before the application is
25		submitted, or, if the business has operated for less

HB0742 Engrossed - 37 - LRB104 04637 BAB 14664 b
1		than 5 years, for the time the business has operated,
2		including its products and services, associated
3		internet website addresses and social media pages,
4		principal place of business, projected user base, and
5		specific marketing targets.
6		(D) A list of all of the following:
7		(i) Any digital asset, money service, or money
8		transmitter registration the applicant and any
9		affiliates hold in another state or from an agency
10		of the United States.
11		(ii) The date the registrations described in
12		subdivision (i) expire.
13		(iii) Any revocation, suspension, or other
14		disciplinary action taken against the applicant
15		and any affiliates in any state or by an agency of
16		the United States and any applications rejected by
17		any state or agency of the United States.
18		(E) A list of any criminal conviction, deferred
19		prosecution agreement, and pending criminal proceeding
20		in any jurisdiction against all of the following:
21		(i) The applicant.
22		(ii) Any executive officer of the applicant.
23		(iii) Any responsible individual of the
24		applicant.
25		(iv) Any person that has control over the
26		applicant.

HB0742 Engrossed - 38 - LRB104 04637 BAB 14664 b
1		(v) Any affiliate of the applicant.
2		(F) A list of any litigation, arbitration, or
3		administrative proceeding in any jurisdiction in which
4		the applicant or an executive officer, responsible
5		individual, or affiliate of the applicant has been a
6		party for the 10 years before the application is
7		submitted determined to be material in accordance with
8		generally accepted accounting principles and, to the
9		extent the applicant or such other person would be
10		required to disclose the litigation, arbitration, or
11		administrative proceeding in the applicant's or such
12		other person's audited financial statements, reports
13		to equity owners, and similar statements or reports.
14		(G) A list of any bankruptcy or receivership
15		proceeding in any jurisdiction for the 10 years before
16		the application is submitted in which any of the
17		following was a debtor:
18		(i) The applicant.
19		(ii) An executive officer of the applicant.
20		(iii) A responsible individual of the
21		applicant.
22		(iv) A person that has control over the
23		applicant.
24		(v) An affiliate of the applicant.
25		(H) The name and United States Postal Service
26		address of any bank or credit union in which the

HB0742 Engrossed - 39 - LRB104 04637 BAB 14664 b
1		applicant and any affiliates plan to deposit funds
2		obtained by digital asset business activity.
3		(I) The source of funds and credit to be used by
4		the applicant and any affiliate to conduct digital
5		asset business activity with or on behalf of a
6		resident.
7		(J) A current financial statement and other
8		documentation satisfactory to the Department
9		demonstrating that the applicant has the capital and
10		liquidity required by Section 20-5.
11		(K) The United States Postal Service address and
12		email address to which communications from the
13		Department can be sent.
14		(L) The name, United States Postal Service
15		address, and email address of the registered agent of
16		the applicant in this State.
17		(M) A copy of the certificate, or a detailed
18		summary acceptable to the Department, of coverage for
19		any liability, casualty, business interruption, or
20		cybersecurity insurance policy maintained by the
21		applicant for itself, an executive officer, a
22		responsible individual, an affiliate, or the
23		applicant's users.
24		(N) If applicable, the date on which and the state
25		in which the applicant is formed and a copy of a
26		current certificate of good standing issued by that

HB0742 Engrossed - 40 - LRB104 04637 BAB 14664 b
1		state.
2		(O) If a person has control of the applicant and
3		the person's equity interests are publicly traded in
4		the United States, a copy of the audited financial
5		statement of the person for the most recent fiscal
6		year or most recent report of the person filed under
7		Section 13 of the Securities Exchange Act of 1934, 15
8		U.S.C. 78m.
9		(P) If a person has control of the applicant and
10		the person's equity interests are publicly traded
11		outside the United States, a copy of the audited
12		financial statement of the person for the most recent
13		fiscal year of the person or a copy of the most recent
14		documentation similar to that required in subparagraph
15		(O) filed with the foreign regulator in the domicile
16		of the person.
17		(Q) If the applicant is a partnership or a
18		member-managed limited liability company, the names
19		and United States Postal Service addresses of any
20		general partner or member.
21		(R) If the applicant is required to register with
22		the Financial Crimes Enforcement Network of the United
23		States Department of the Treasury as a money service
24		business, evidence of the registration.
25		(S) A set of fingerprints for each executive
26		officer and responsible individual of the applicant.

HB0742 Engrossed - 41 - LRB104 04637 BAB 14664 b
1		(T) If available, for any executive officer and
2		responsible individual of the applicant, for the 10
3		years before the application is submitted, employment
4		history and history of any investigation of the
5		individual or legal proceeding to which the individual
6		was a party.
7		(U) The plans through which the applicant will
8		meet its obligations under Article 10.
9		(V) Any other information the Department requires
10		by rule.
11		(3) The application shall be accompanied by a
12		nonrefundable fee of $5,000 or the amount determined by
13		the Department to cover the costs of application review,
14		whichever is greater.
15		(b)(1) On receipt of a completed application, the
16		Department shall investigate all of the following:
17		(A) The financial condition and responsibility of the
18		applicant and any affiliate of the applicant.
19		(B) The relevant financial and business experience,
20		character, and general fitness of the applicant and any
21		affiliate of the applicant.
22		(C) The competence, experience, character, and general
23		fitness of each executive officer and director, each
24		responsible individual, and any person that has control of
25		the applicant.
26		(2) On receipt of a completed application, the Department

HB0742 Engrossed - 42 - LRB104 04637 BAB 14664 b
1		may investigate the business premises of an applicant or an
2		affiliate of the applicant or require the submission of any
3		other documents or information the Department deems relevant
4		to the application.
5		(3) The investigation required by this subsection must
6		allow the Secretary to issue positive findings stating that
7		the financial condition, financial responsibility, competence,
8		experience, character, and general fitness of the applicant,
9		each executive officer and director, each responsible
10		individual, any person that has control of the applicant, and
11		any affiliate of the applicant are such as to command the
12		confidence of the community and to warrant belief that the
13		business will be operated honestly, fairly, and efficiently
14		within the purpose of this Act; if the Secretary does not so
15		find, he or she shall not issue the registration, and he or she
16		shall notify the applicant of the denial.
17		(c)(1) After completing the investigation required by
18		subsection (b), the Department shall send the applicant notice
19		of its decision to approve, conditionally approve, or deny the
20		application. If the Department does not receive notice from
21		the applicant that the applicant accepts conditions specified
22		by the Department within 31 days following the Department's
23		notice of the conditions, the application shall be deemed
24		withdrawn.
25		(2) The Secretary may impose conditions on a registration
26		if the Secretary determines that those conditions are

HB0742 Engrossed - 43 - LRB104 04637 BAB 14664 b
1		necessary or appropriate. These conditions shall be imposed in
2		writing and shall continue in effect for the period prescribed
3		by the Secretary.
4		(d) A registration issued pursuant to this Act shall take
5		effect on the later of the following:
6		(1) The date the Department issues the registration.
7		(2) The date the registration provides the security
8		required by Section 20-5.
9		(e) In addition to the fee required by paragraph (3) of
10		subsection (a), an applicant shall pay the costs of the
11		Department's investigation under subsection (b).
12		(f) A registration issued pursuant to this Act shall
13		remain in full force and effect until it expires without
14		renewal, is surrendered by the registration, or revoked or
15		suspended as hereinafter provided.
16		(g)(1) The Department may issue a conditional registration
17		to an applicant who holds or maintains a registration to
18		conduct virtual currency business activity in the State of New
19		York pursuant to Part 200 of Title 23 of the New York Code of
20		Rules and Regulations, or a charter as a New York State limited
21		purpose trust company with approval to conduct virtual
22		currency business under the New York Banking Law, if the
23		registration or approval was issued no later than the
24		effective date of this Act and the applicant pays all
25		appropriate fees and complies with the requirements of this
26		Act.

HB0742 Engrossed - 44 - LRB104 04637 BAB 14664 b
1		(2) A conditional registration issued pursuant to this
2		subsection shall expire at the earliest of the following:
3		(A) upon issuance of an unconditional registration;
4		(B) upon denial of a registration;
5		(C) upon revocation of a registration issued pursuant
6		to Part 200 of Title 23 of the New York Code of Rules and
7		Regulations or disapproval or revocation of a charter as a
8		New York State limited purpose trust company with approval
9		to conduct virtual currency business under the New York
10		Banking Law.
11		Section 15-15. Renewal.
12		(a) Registrations shall be subject to renewal every year
13		using a common renewal period as established by the Department
14		by rule. A registrant may apply for renewal of the
15		registration by submitting a renewal application under
16		subsection (b) and paying all applicable fees due to the
17		Department.
18		(b) The renewal application required by subsection (a)
19		shall be submitted in a form and medium prescribed by the
20		Department. The application shall contain all of the
21		following:
22		(1) Either a copy of the registrant's most recent
23		reviewed annual financial statement, if the gross revenue
24		generated by the registrant's digital asset business
25		activity in this State was not more than $2,000,000 for

HB0742 Engrossed - 45 - LRB104 04637 BAB 14664 b
1		the fiscal year ending before the anniversary date of
2		issuance of its registration under this Act, or a copy of
3		the registrant's most recent audited annual financial
4		statement, if the registrant's digital asset business
5		activity in this State amounted to more than $2,000,000,
6		for the fiscal year ending before the anniversary date.
7		(2) If a person other than an individual has control
8		of the registrant, a copy of either of the following:
9		(A) The person's most recent reviewed annual
10		financial statement, if the person's gross revenue was
11		not more than $2,000,000 in the previous fiscal year
12		measured as of the anniversary date of issuance of its
13		registration under this Act.
14		(B) The person's most recent audited consolidated
15		annual financial statement, if the person's gross
16		revenue was more than $2,000,000 in the previous
17		fiscal year measured as of the anniversary date of
18		issuance of its registration under this Act.
19		(3) A description of any of the following:
20		(A) Any material change in the financial condition
21		of the registrant and any affiliate of the registrant.
22		(B) Any material litigation related to the
23		registrant's digital asset business activity and
24		involving the registrant or an executive officer,
25		responsible individual, or affiliate of the
26		registrant.

HB0742 Engrossed - 46 - LRB104 04637 BAB 14664 b
1		(C) Any federal, state, or foreign investigation
2		involving the registrant or an executive officer,
3		responsible individual, or affiliate of the
4		registrant.
5		(D)(i) Any data security breach or cybersecurity
6		event involving the registrant.
7		(ii) A description of a data security breach
8		pursuant to this subparagraph does not constitute
9		disclosure or notification of a security breach
10		for purposes of any other law.
11		(4) Information or records required by Section 20-25
12		that the registrant has not reported to the Department.
13		(5) The number of digital asset business activity
14		transactions with or on behalf of residents for the period
15		since the later of the date the registration was issued or
16		the date the last renewal application was submitted.
17		(6)(A) The amount of United States dollar equivalent
18		of digital assets in the custody or control of the
19		registrant at the end of the last month that ends not later
20		than 30 days before the date of the renewal application.
21		(B) The total number of residents for whom the
22		registrant had custody or control of United States
23		dollar equivalent of digital assets on that date.
24		(7) Evidence that the registrant is in compliance with
25		Section 5-10.
26		(8) Evidence that the registrant is in compliance with

HB0742 Engrossed - 47 - LRB104 04637 BAB 14664 b
1		Section 20-5.
2		(9) A list of all locations where the registrant
3		engages in digital asset business activity.
4		(10) Any other information the Department requires by
5		rule.
6		(c) If a registrant does not timely comply with this
7		Section, the Department may take enforcement actions provided
8		under Section 20-50. Notice or hearing is not required for a
9		suspension or revocation of a registration under this Act for
10		failure to pay a renewal fee, file a renewal application, or
11		otherwise comply with this Section.
12		(d) Suspension or revocation of a registration under this
13		Section does not invalidate a transfer or exchange of digital
14		assets for or on behalf of a resident made during the
15		suspension or revocation and does not insulate the registrant
16		from liability under this Act.
17		(e) For good cause, the Department, in its sole
18		discretion, may extend a period under this Section.
19		(f) A registrant that does not comply with this Section
20		shall cease digital asset business activities with or on
21		behalf of a resident. A registrant ceasing an activity or
22		activities regulated by this Act and desiring to no longer be
23		registered shall so inform the Department in writing and, at
24		the same time, convey any registration issued and all other
25		symbols or indicia of registration. The registrant shall
26		include a plan for the withdrawal from regulated business,

HB0742 Engrossed - 48 - LRB104 04637 BAB 14664 b
1		including a timetable for the disposition of the business, and
2		comply with the surrender guidelines or requirements of the
3		Department.
4		Section 15-20. Nontransferable registration. A
5		registration under this Act is not transferable or assignable.
6		Article 20. Supervision
7		Section 20-5. Surety bond; capital and liquidity
8		requirements.
9		(a)(1)(A) A registrant shall maintain a surety bond or
10		trust account in United States dollars in a form and amount as
11		determined by the Department for the protection of residents
12		that engage in digital asset business activity with the
13		registrant.
14		(B) If a registrant maintains a trust account
15		pursuant to this Section, that trust account shall be
16		maintained with a qualified custodian.
17		(2) Security deposited under this Section shall be for
18		the benefit of a claim against the registrant on account
19		of the registrant's digital asset business activity with
20		or on behalf of a resident.
21		(3) Security deposited under this Section shall cover
22		claims for the period the Department specifies by rule and
23		for an additional period the Department specifies after

HB0742 Engrossed - 49 - LRB104 04637 BAB 14664 b
1		the registrant ceases to engage in digital asset business
2		activity with or on behalf of a resident.
3		(4) The Department may require the registrant to
4		increase the amount of security deposited under this
5		Section, and the registrant shall deposit the additional
6		security not later than 15 days after the registrant
7		receives notice in a record of the required increase.
8		(5) The Department may permit a registrant to
9		substitute or deposit an alternate form of security
10		satisfactory to the Department if the registrant at all
11		times complies with this Section.
12		(b) In addition to the security required under subsection
13		(a), a registrant shall maintain at all times capital and
14		liquidity, each in an amount and form as the Department
15		determines is sufficient to ensure the financial integrity of
16		the registrant and its ongoing operations based on an
17		assessment of the specific risks applicable to the registrant.
18		In determining the minimum amount of capital and liquidity
19		that shall be maintained by a registrant, the Department may
20		consider factors, including, but not limited to, all of the
21		following:
22		(1) The composition of the registrant's total assets,
23		including the position, size, quality, liquidity, risk
24		exposure, and price volatility of each type of asset.
25		(2) The composition of the registrant's total
26		liabilities, including the size and repayment timing of

HB0742 Engrossed - 50 - LRB104 04637 BAB 14664 b
1		each type of liability.
2		(3) The actual and expected volume of the registrant's
3		digital asset business activity.
4		(4) The amount of leverage employed by the registrant.
5		(5) The liquidity position of the registrant.
6		(6) The financial protection that the registrant
7		provides pursuant to subsection (a).
8		(7) The types of entities to be serviced by the
9		registrant.
10		(8) The types of products or services to be offered by
11		the registrant.
12		(9) Arrangements adopted by the registrant for the
13		protection of its customers in the event of the
14		registrant's insolvency.
15		(c) A registrant shall hold liquidity required to be
16		maintained in accordance with this Section in the form of cash
17		or high-quality liquid assets, as defined by the Department
18		and in proportions determined by the Department.
19		(d) The Department may require a registrant to increase
20		the capital or liquidity required under this Section. A
21		registrant shall submit evidence satisfactory to the
22		Department that it has additional capital or liquidity
23		required pursuant to this subsection not later than 15 days
24		after the registrant receives notice in a record of the
25		required increase.

HB0742 Engrossed - 51 - LRB104 04637 BAB 14664 b
1		Section 20-10. Examination.
2		(a)(1)(A) The Department may, at any time and from time to
3		time, examine the business and any office, within or outside
4		this State, of any covered person, or any agent of a covered
5		person, in order to ascertain (i) the financial condition of
6		the covered person, (ii) the safety and soundness of the
7		conduct of its business, (iii) the policies of its management,
8		(iv) whether the business is being conducted in a lawful
9		manner, (v) whether all digital asset business activity is
10		properly accounted for, and (vi) such other matters as the
11		Department may determine, including, but not limited to, any
12		activities of the covered person outside the State if in the
13		Department's judgment such activities may affect the covered
14		person's digital asset business activity.
15		(B) The directors, officers, and employees of a
16		covered person, or agent of a covered person, being
17		examined by the Department shall exhibit to the
18		Department, on request, any or all of the covered
19		person's accounts, books, correspondence, memoranda,
20		papers, and other records and shall otherwise
21		facilitate the examination so far as it may be in their
22		power to do so.
23		(C) The covered person shall permit and assist the
24		Department to examine an affiliate or service provider
25		of the covered person when, in the Department's
26		judgment, it is necessary or advisable to do so.

HB0742 Engrossed - 52 - LRB104 04637 BAB 14664 b
1		(2) The Department may examine a covered person, its
2		affiliate, or service provider pursuant to this paragraph
3		without prior notice to the covered person, affiliate, or
4		service provider.
5		(b) A covered person shall pay the necessary costs of an
6		examination under this Section.
7		Section 20-15. Books and records.
8		(a) A registrant shall maintain, for all digital asset
9		business activity with or on behalf of a resident for 5 years
10		after the date of the activity, a record of all of the
11		following:
12		(1) Any transaction of the registrant with or on
13		behalf of the resident or for the registrant's account in
14		this State, including all of the following:
15		(A) The identity of the resident.
16		(B) The form of the transaction.
17		(C) The amount, date, and payment instructions
18		given by the resident.
19		(D) The account number, name, and physical address
20		of:
21		(i) the parties to the transaction that are
22		customers or account holders of the registrant;
23		and
24		(ii) to the extent practicable, any other
25		parties to the transaction.

HB0742 Engrossed - 53 - LRB104 04637 BAB 14664 b
1		(2) The aggregate number of transactions and aggregate
2		value of transactions by the registrant with, or on behalf
3		of, the resident and for the registrant's account in this
4		State expressed in United States dollar equivalent of
5		digital assets for the previous 12 calendar months.
6		(3) Any transaction in which the registrant exchanged
7		one form of digital asset for fiat currency or another
8		form of digital asset with or on behalf of the resident.
9		(4) A general ledger maintained at least monthly that
10		lists all assets, liabilities, capital, income, and
11		expenses of the registrant.
12		(5) Any report of condition or other reports to the
13		Department, at such times and in such form, as the
14		Department may request.
15		(6) Bank statements and bank reconciliation records
16		for the registrant and the name, account number, and
17		United States Postal Service address of any bank or credit
18		union the registrant uses in the conduct of its digital
19		asset business activity with or on behalf of the resident.
20		(7) A report of any dispute with a resident.
21		(b) A registrant shall maintain records required by
22		subsection (a) in a form that enables the Department to
23		determine whether the registrant is in compliance with this
24		Act, any court order, and the laws of this State.
25		(c) If a registrant maintains records outside this State
26		that pertain to transactions with or on behalf of a resident,

HB0742 Engrossed - 54 - LRB104 04637 BAB 14664 b
1		the registrant shall make the records available to the
2		Department not later than 3 days after request, or, on a
3		determination of good cause by the Department, in its sole
4		discretion, at a later time.
5		(d) All records maintained by a registrant, any affiliate,
6		or any service provider are subject to inspection by the
7		Department.
8		Section 20-20. Regulatory cooperation. The Department may
9		cooperate, coordinate, jointly examine, consult, and share
10		records and other information with the appropriate regulatory
11		agency of another state, a self-regulatory organization,
12		federal or state regulator of banking or non-depository
13		institutions, or a regulator of a jurisdiction outside the
14		United States, concerning the affairs and conduct of a covered
15		person, affiliate, or service provider in this State.
16		Section 20-25. Material business changes.
17		(a) A registrant shall file with the Department a report
18		of the following, as may be applicable:
19		(1) A material change in information in the
20		application for a registration under this Act or the most
21		recent renewal report of the registrant under this Act.
22		(2) A material change in the registrant's business for
23		the conduct of its digital asset business activity with or
24		on behalf of a resident.

HB0742 Engrossed - 55 - LRB104 04637 BAB 14664 b
1		(3) A change of an affiliate, executive officer,
2		responsible individual, or person in control of the
3		registrant.
4		(b) A report required by this Section shall be filed not
5		later than 15 days after the change described in subsection
6		(a).
7		Section 20-30. Change in control.
8		(a) As used in this Section, "proposed person to be in
9		control" means the person that would control a registrant
10		after a proposed transaction that would result in a change in
11		control of the registrant.
12		(b) The following rules apply in determining whether a
13		person has control over a registrant:
14		(1) There is a rebuttable presumption of control if a
15		person directly or indirectly owns, controls, holds with
16		the power to vote, or holds proxies representing 10% or
17		more of the then outstanding voting securities issued by
18		the registrant.
19		(2) A person has control over a registrant if the
20		person's voting power in the registrant constitutes or
21		will constitute at least 25% of the total voting power of
22		the registrant.
23		(3) There is a rebuttable presumption of control if
24		the person's voting power in another person constitutes or
25		will constitute at least 10% of the total voting power of

HB0742 Engrossed - 56 - LRB104 04637 BAB 14664 b
1		the other person and the other person's voting power in
2		the registrant constitutes at least 10% of the total
3		voting power of the registrant.
4		(4) There is no presumption of control solely because
5		an individual is an executive officer of the registrant.
6		(c) Before a proposed change in control of a registrant,
7		the proposed person to be in control shall submit to the
8		Department in a record all of the following:
9		(1) An application in a form and medium prescribed by
10		the Department.
11		(2) The information and records that Section 15-10
12		would require if the proposed person to be in control
13		already had control of the registrant.
14		(d) The Department shall not approve an application unless
15		the Secretary finds all of the following:
16		(1) The proposed person to be in control and all
17		executive officers of the proposed person to be in
18		control, if any, are of good character and sound financial
19		standing.
20		(2) The proposed person to be in control is competent
21		to engage in digital asset business activity.
22		(3) It is reasonable to believe that, if the person
23		acquires control of the registrant, the proposed person to
24		be in control and the registrant will comply with all
25		applicable provisions of this Act and any rules or order
26		issued under this Act.

HB0742 Engrossed - 57 - LRB104 04637 BAB 14664 b
1		(4) Any plans by the proposed person to be in control
2		to change the business, corporate structure, or management
3		of the registrant are not detrimental to the safety and
4		soundness of the registrant.
5		(e) The Department, in accordance with Section 15-10,
6		shall approve, approve with conditions, or deny an application
7		for a change in control of a registrant. The Department, in a
8		record, shall send notice of its decision to the registrant
9		and the person that would be in control if the Department had
10		approved the change in control. If the Department denies the
11		application, the registrant shall abandon the proposed change
12		in control or cease digital asset business activity with or on
13		behalf of residents.
14		(f) If the Department applies a condition to approval of a
15		change in control of a registrant, and the Department does not
16		receive notice of the applicant's acceptance of the condition
17		specified by the Department not later than 31 days after the
18		Department sends notice of the condition, the application is
19		deemed denied. If the application is deemed denied, the
20		registrant shall abandon the proposed change in control or
21		cease digital asset business activity with or on behalf of
22		residents.
23		(g) The Department may revoke or modify a determination
24		under subsection (d), after notice and opportunity to be
25		heard, if, in its judgment, revocation or modification is
26		consistent with this Act.

HB0742 Engrossed - 58 - LRB104 04637 BAB 14664 b
1		(h) If a change in control of a registrant requires
2		approval of another regulatory agency, and the action of the
3		other agency conflicts with that of the Department, the
4		Department shall confer with the other agency. If the proposed
5		change in control cannot be completed because the conflict
6		cannot be resolved, the registrant shall abandon the change in
7		control or cease digital asset business activity with or on
8		behalf of residents.
9		Section 20-35. Mergers.
10		(a) Before a proposed merger or consolidation of a
11		registrant with another person, the registrant shall submit
12		all of the following, as applicable, to the Department:
13		(1) An application in a form and medium prescribed by
14		the Department.
15		(2) The plan of merger or consolidation in accordance
16		with subsection (e).
17		(3) In the case of a registrant, the information
18		required by Section 15-10 concerning the person that would
19		be the surviving entity in the proposed merger or
20		consolidation.
21		(b) If a proposed merger or consolidation would change the
22		control of a registrant, the registrant shall comply with
23		Section 20-30 and this Section.
24		(c) The Department, in accordance with Section 15-10,
25		shall approve, conditionally approve, or deny an application

HB0742 Engrossed - 59 - LRB104 04637 BAB 14664 b
1		for approval of a merger or consolidation of a registrant. The
2		Department, in a record, shall send notice of its decision to
3		the registrant and the person that would be the surviving
4		entity. If the Department denies the application, the
5		registrant shall abandon the merger or consolidation or cease
6		digital asset business activity with or on behalf of
7		residents.
8		(d) The Department may revoke or modify a determination
9		under paragraph (c), after notice and opportunity to be heard,
10		if, in its judgment, revocation or modification is consistent
11		with this Act.
12		(e) A plan of merger or consolidation of a registrant with
13		another person shall do all of the following:
14		(1) Describe the effect of the proposed transaction on
15		the registrant's conduct of digital asset business
16		activity with or on behalf of residents.
17		(2) Identify each person to be merged or consolidated
18		and the person that would be the surviving entity.
19		(3) Describe the terms and conditions of the merger or
20		consolidation and the mode of carrying it into effect.
21		(f) If a merger or consolidation of a registrant and
22		another person requires approval of another regulatory agency,
23		and the action of the other agency conflicts with that of the
24		Department, the Department shall confer with the other agency.
25		If the proposed merger or consolidation cannot be completed
26		because the conflict cannot be resolved, the registrant shall

HB0742 Engrossed - 60 - LRB104 04637 BAB 14664 b
1		abandon the merger or consolidation or cease digital asset
2		business activity with or on behalf of residents.
3		(g) The Department may condition approval of an
4		application under subsection (a). If the Department does not
5		receive notice from the parties that the parties accept the
6		Department's condition not later than 31 days after the
7		Department sends notice in a record of the condition, the
8		application is deemed denied. If the application is deemed
9		denied, the registrant shall abandon the merger or
10		consolidation or cease digital asset business activity with,
11		or on behalf of, residents.
12		(h) If a registrant acquires substantially all of the
13		assets of a person, whether or not the person's registration
14		was approved by the Department, the transaction is subject to
15		this Section.
16		Section 20-40. Investigation of complaints. The Secretary
17		shall be authorized at all times to maintain staff and
18		facilities adequate to receive, record, and investigate
19		complaints and inquiries made by any person concerning this
20		Act and any covered persons, affiliates, and service providers
21		under this Act. Each such person shall open their books,
22		records, documents, and offices wherever situated to the
23		Secretary or his or her appointees as needed to facilitate
24		such investigations.

HB0742 Engrossed - 61 - LRB104 04637 BAB 14664 b
1		Section 20-45. Additional investigation and examination
2		authority. In addition to any authority allowed under this Act
3		or other applicable law, the Secretary shall have the
4		authority to conduct investigations and examinations as
5		follows:
6		(1) For purposes of initial registration, renewal,
7		suspension, conditioning, revocation or termination, or
8		general or specific inquiry or investigation to determine
9		compliance with this Act, the Secretary shall have the
10		authority to access, receive, and use any books, accounts,
11		records, files, documents, information, or evidence,
12		including, but not limited to, the following:
13		(A) criminal, civil, and administrative history
14		information, including nonconviction data as specified
15		in the Criminal Code of 2012;
16		(B) personal history and experience information,
17		including independent credit reports obtained from a
18		consumer reporting agency described in Section 603(p)
19		of the federal Fair Credit Reporting Act; and
20		(C) any other documents, information, or evidence
21		the Secretary deems relevant to the inquiry or
22		investigation, regardless of the location, possession,
23		control, or custody of the documents, information, or
24		evidence.
25		(2) For the purposes of investigating violations or
26		complaints arising under this Act or for the purposes of

HB0742 Engrossed - 62 - LRB104 04637 BAB 14664 b
1		examination, the Secretary may review, investigate, or
2		examine any covered person, affiliate, service provider,
3		individual, or person subject to this Act as often as
4		necessary in order to carry out the purposes of this Act.
5		The Secretary may direct, subpoena, or order the
6		attendance of and examine under oath all persons whose
7		testimony may be required about the transactions or the
8		business or subject matter of any such examination or
9		investigation, and may direct, subpoena, or order the
10		person to produce books, accounts, records, files, and any
11		other documents the Secretary deems relevant to the
12		inquiry.
13		(3) Each covered person, affiliate, service provider,
14		individual, or person subject to this Act shall make
15		available to the Secretary upon request the books and
16		records relating to the operations of the registrant,
17		affiliate, individual, or person subject to this Act. The
18		Secretary shall have access to those books and records and
19		interview the officers, principals, employees, independent
20		contractors, agents, and customers of the covered person,
21		affiliate, service provider, individual, or person subject
22		to this Act concerning their business.
23		(4) Each covered person, affiliate, service provider,
24		individual, or person subject to this Act shall make or
25		compile reports or prepare other information as directed
26		by the Secretary in order to carry out the purposes of this

HB0742 Engrossed - 63 - LRB104 04637 BAB 14664 b
1		Section, including, but not limited to:
2		(A) accounting compilations;
3		(B) information lists and data concerning
4		transactions in a format prescribed by the Secretary;
5		or
6		(C) other information deemed necessary to carry
7		out the purposes of this Section.
8		(5) In making any examination or investigation
9		authorized by this Act, the Secretary may control access
10		to any documents and records of the covered person or
11		person under examination or investigation. The Secretary
12		may take possession of the documents and records or place
13		a person in exclusive charge of the documents and records
14		in the place where they are usually kept. During the
15		period of control, no person shall remove or attempt to
16		remove any of the documents or records, except pursuant to
17		a court order or with the consent of the Secretary. Unless
18		the Secretary has reasonable grounds to believe the
19		documents or records of the covered person or person under
20		examination or investigation have been or are at risk of
21		being altered or destroyed for purposes of concealing a
22		violation of this Act, the covered person or owner of the
23		documents and records shall have access to the documents
24		or records as necessary to conduct its ordinary business
25		affairs.
26		(6) In order to carry out the purposes of this

HB0742 Engrossed - 64 - LRB104 04637 BAB 14664 b
1		Section, the Secretary may:
2		(A) retain attorneys, accountants, or other
3		professionals and specialists as examiners, auditors,
4		or investigators to conduct or assist in the conduct
5		of examinations or investigations;
6		(B) enter into agreements or relationships with
7		other government officials, regulatory associations,
8		or self-regulatory organizations in order to improve
9		efficiencies and reduce regulatory burden by sharing
10		resources, standardized or uniform methods or
11		procedures, and documents, records, information, or
12		evidence obtained under this Section;
13		(C) use, hire, contract, or employ public or
14		privately available analytical systems, methods, or
15		software to examine or investigate the covered person,
16		affiliate, service provider, individual, or person
17		subject to this Act;
18		(D) accept and rely on examination or
19		investigation reports made by other government
20		officials, within or outside this State; or
21		(E) accept audit reports made by an independent
22		certified public accountant for the covered person,
23		affiliate, service provider, individual, or person
24		subject to this Act in the course of that part of the
25		examination covering the same general subject matter
26		as the audit and may incorporate the audit report in

HB0742 Engrossed - 65 - LRB104 04637 BAB 14664 b
1		the report of the examination, report of
2		investigation, or other writing of the Secretary.
3		(7) The authority of this Section shall remain in
4		effect, whether such a covered person, affiliate, service
5		provider, individual, or person subject to this Act acts
6		or claims to act under any licensing or registration law
7		of this State or claims to act without the authority.
8		(8) No covered person, affiliate, service provider,
9		individual, or person subject to investigation or
10		examination under this Section may knowingly withhold,
11		abstract, remove, mutilate, destroy, or secrete any books,
12		records, computer records, or other information.
13		Section 20-50. Enforcement actions.
14		(a) As used in this Article, "enforcement action" means an
15		action including, but not limited to, all of the following:
16		(1) Suspending or revoking a registration under this
17		Act.
18		(2) Ordering a person to cease and desist from doing
19		digital asset business activity with or on behalf of a
20		resident.
21		(3) Requesting the court to appoint a receiver for the
22		assets of a person doing digital asset business activity
23		with or on behalf of a resident.
24		(4) Requesting the court to issue temporary,
25		preliminary, or permanent injunctive relief against a

HB0742 Engrossed - 66 - LRB104 04637 BAB 14664 b
1		person doing digital asset business activity with or on
2		behalf of a resident.
3		(5) Assessing a civil penalty under Section 20-70.
4		(6) Recovering on the security under Section 20-5 and
5		initiating a plan to distribute the proceeds for the
6		benefit of a resident injured by a violation of this Act,
7		or law of this State other than this Act that applies to
8		digital asset business activity with or on behalf of a
9		resident.
10		(7) Imposing necessary or appropriate conditions on
11		the conduct of digital asset business activity with or on
12		behalf of a resident.
13		(8) Seeking restitution on behalf of a resident if the
14		Department shows economic injury due to a violation of
15		this Act.
16		(b) The Department may enter into a consent order with a
17		person regarding an enforcement action.
18		(c) This Section does not provide a private right of
19		action to a resident, provided this Section does not preclude
20		an action by a resident to enforce rights under Article 5 or
21		subsection (a) of Section 20-5.
22		Section 20-55. Violations.
23		(a) The Department may take an enforcement action against
24		a covered person or any person otherwise subject to this Act in
25		any of the following instances:

HB0742 Engrossed - 67 - LRB104 04637 BAB 14664 b
1		(1) The covered person or person violates this Act, a
2		rule adopted or order issued under this Act, or a State or
3		federal law or regulation that applies to digital asset
4		business activity of the violator with or on behalf of a
5		resident.
6		(2) The covered person or person does not cooperate
7		with an examination or investigation by the Department,
8		fails to pay a fee, or fails to submit a report or
9		documentation.
10		(3) The covered person or person, in the conduct of
11		its digital asset business activity with or on behalf of a
12		resident, has engaged, is engaging, or is about to engage
13		in any of the following:
14		(A) An unsafe, unsound, or unlawful act or
15		practice.
16		(B) An unfair, deceptive, or abusive act or
17		practice.
18		(C) Fraud, misrepresentation, deceit, or
19		negligence.
20		(D) Misappropriation of fiat currency, a digital
21		asset, or other value.
22		(4) An agency of the United States or another state
23		takes an action against the covered person or person that
24		would constitute an enforcement action if the Department
25		had taken the action.
26		(5) The covered person or person is convicted of a

HB0742 Engrossed - 68 - LRB104 04637 BAB 14664 b
1		crime related to its digital asset business activity with
2		or on behalf of a resident or involving fraud or felonious
3		activity that, as determined by the Department, makes the
4		covered person or person unsuitable to engage in digital
5		asset business activity.
6		(6) Any of the following occurs:
7		(A) The covered person or person becomes
8		insolvent.
9		(B) The covered person or person makes a general
10		assignment for the benefit of its creditors.
11		(C) The covered person or person becomes the
12		debtor, alleged debtor, respondent, or person in a
13		similar capacity in a case or other proceeding under
14		any bankruptcy, reorganization, arrangement,
15		readjustment, insolvency, receivership, dissolution,
16		liquidation, or similar law, and does not obtain from
17		the court, within a reasonable time, confirmation of a
18		plan or dismissal of the case or proceeding.
19		(D) The covered person or person applies for, or
20		permits the appointment of, a receiver, trustee, or
21		other agent of a court for itself or for a substantial
22		part of its assets.
23		(7) The covered person or person makes a
24		misrepresentation to the Department.
25		(b) If the Secretary finds, as the result of examination,
26		investigation, or review of reports submitted by a registrant,

HB0742 Engrossed - 69 - LRB104 04637 BAB 14664 b
1		that the business and affairs of a registrant are not being
2		conducted in accordance with this Act, the Secretary may
3		notify the registrant of the correction necessary. If a
4		registrant fails to correct such violations, the Secretary may
5		issue an order requiring immediate correction and compliance
6		with this Act and may specify a reasonable date for
7		performance.
8		Section 20-60. Hearings.
9		(a) Except as provided in subsection (b), the Department
10		may take an enforcement action only after notice and
11		opportunity for a hearing as appropriate in the circumstances.
12		All hearings provided for in this Act shall be conducted in
13		accordance with Title 38, Part 100 of the Illinois
14		Administrative Code, and the Secretary shall have all the
15		powers granted therein.
16		(b)(1)(A) The Department may take an enforcement action,
17		other than the imposition of a civil penalty under Section
18		20-70, without notice if the circumstances require action
19		before notice can be given.
20		(B) A person subject to an enforcement action
21		pursuant to this subsection shall have the right to an
22		expedited post-action hearing by the Department unless
23		the person has waived the hearing.
24		(2)(A) The Department may take an enforcement action,
25		other than the imposition of a civil penalty under Section

HB0742 Engrossed - 70 - LRB104 04637 BAB 14664 b
1		20-70, after notice and without a prior hearing if the
2		circumstances require action before a hearing can be held.
3		(B) A person subject to an enforcement action
4		pursuant to this subsection shall have the right to an
5		expedited post-action hearing by the Department unless
6		the person has waived the hearing.
7		(3) The Department may take an enforcement action
8		after notice and without a hearing if the person subject
9		to the enforcement action does not timely request a
10		hearing.
11		Section 20-65. Hearing rules.
12		(a) The Department may, in accordance with the Illinois
13		Administrative Procedure Act, adopt rules to provide for
14		review within the Department of the Secretary's decisions
15		affecting the rights of persons or entities under this Act.
16		The review shall provide for, at a minimum:
17		(1) appointment of a hearing officer;
18		(2) appropriate procedural rules, specific deadlines
19		for filings, and standards of evidence and of proof; and
20		(3) provision for apportioning costs among parties to
21		the appeal.
22		(b) All final administrative decisions of the Department
23		under this Act, all amendments and modifications of final
24		administrative decisions, and any rules adopted by the
25		Department pursuant to this Act shall be subject to judicial

HB0742 Engrossed - 71 - LRB104 04637 BAB 14664 b
1		review pursuant to the provisions of the Administrative Review
2		Law.
3		Section 20-70. Civil penalties.
4		(a) If a person other than a registrant has engaged, is
5		engaging, or is about to engage in digital asset business
6		activity with or on behalf of a resident in violation of this
7		Act, the Department may assess a civil penalty against the
8		person in an amount not to exceed $100,000 for each day the
9		person is in violation of this Act.
10		(b) If a person violates a provision of this Act, the
11		Department may assess a civil penalty in an amount not to
12		exceed $25,000 for each day of violation or for each act or
13		omission in violation, except that a fine may be imposed not to
14		exceed $75,000 for each day of violation or for each act or
15		omission in violation related to fraud, misrepresentation,
16		deceit, or negligence.
17		(c) A civil penalty under this Section continues to accrue
18		until the date the violation ceases.
19		(d) A civil penalty under this Section is cumulative to
20		any civil penalties enforceable by the Department under any
21		other law.
22		Section 20-75. Subpoena power.
23		(a) The Secretary shall have the power to issue and to
24		serve subpoenas and subpoenas duces tecum to compel the

HB0742 Engrossed - 72 - LRB104 04637 BAB 14664 b
1		attendance of witnesses and the production of all books,
2		accounts, records, and other documents and materials relevant
3		to an examination or investigation. The Secretary, or his or
4		her duly authorized representative, shall have power to
5		administer oaths and affirmations to any person.
6		(b) In the event of noncompliance with a subpoena or
7		subpoena duces tecum issued or caused to be issued by the
8		Secretary, the Secretary may, through the Attorney General or
9		the State's Attorney of the county in which the person
10		subpoenaed resides or has its principal place of business,
11		petition the circuit court of the county for an order
12		requiring the subpoenaed person to appear and testify and to
13		produce such books, accounts, records, and other documents as
14		are specified in the subpoena duces tecum. The court may grant
15		injunctive relief restraining the person from advertising,
16		promoting, soliciting, entering into, offering to enter into,
17		continuing, or completing any digital asset business activity.
18		The court may grant other relief, including, but not limited
19		to, the restraint, by injunction or appointment of a receiver,
20		of any transfer, pledge, assignment, or other disposition of
21		the person's assets or any concealment, alteration,
22		destruction, or other disposition of books, accounts, records,
23		or other documents and materials as the court deems
24		appropriate, until the person has fully complied with the
25		subpoena or subpoena duces tecum and the Secretary has
26		completed an investigation or examination.

HB0742 Engrossed - 73 - LRB104 04637 BAB 14664 b
1		(c) If it appears to the Secretary that the compliance
2		with a subpoena or subpoena duces tecum issued or caused to be
3		issued by the Secretary pursuant to this Section is essential
4		to an investigation or examination, the Secretary, in addition
5		to the other remedies provided for in this Act, may, through
6		the Attorney General or the State's Attorney of the county in
7		which the subpoenaed person resides or has its principal place
8		of business, apply for relief to the circuit court of the
9		county. The court shall thereupon direct the issuance of an
10		order against the subpoenaed person requiring sufficient bond
11		conditioned on compliance with the subpoena or subpoena duces
12		tecum. The court shall cause to be endorsed on the order a
13		suitable amount of bond or payment pursuant to which the
14		person named in the order shall be freed, having a due regard
15		to the nature of the case.
16		(d) In addition, the Secretary may, through the Attorney
17		General or the State's Attorney of the applicable county, seek
18		a writ of attachment or an equivalent order from the circuit
19		court having jurisdiction over the person who has refused to
20		obey a subpoena, who has refused to give testimony, or who has
21		refused to produce the matters described in the subpoena duces
22		tecum.
23		Section 20-80. Civil actions.
24		(a) The Department may bring a civil action in accordance
25		with the following:

HB0742 Engrossed - 74 - LRB104 04637 BAB 14664 b
1		(1) If a person violates any provision of this Act, a
2		rule or final order, or condition imposed in writing by
3		the Department, the Department through the Attorney
4		General or the State's Attorney of the county in which any
5		such violation occurs may bring an action in the circuit
6		court to enjoin the acts or practices or to enforce
7		compliance with this Act or any rule or order adopted
8		pursuant to this Act. Upon a proper showing, a permanent
9		or preliminary injunction, restraining order, or writ of
10		mandate shall be granted and a receiver, monitor,
11		conservator, or other designated fiduciary or officer of
12		the court may be appointed for the defendant or the
13		defendant's assets, or any other ancillary relief may be
14		granted as appropriate. A receiver, monitor, conservator,
15		or other designated fiduciary or officer of the court
16		appointed by the circuit court pursuant to this Section
17		may, with the approval of the court, exercise any or all of
18		the powers of the defendant's officers, directors,
19		partners, trustees, or persons who exercise similar powers
20		and perform similar duties, including the filing of a
21		petition for bankruptcy. No action at law or in equity may
22		be maintained by any party against the Secretary, a
23		receiver, monitor, conservator, or other designated
24		fiduciary or officer of the court, by reason of their
25		exercising these powers or performing these duties
26		pursuant to the order of, or with the approval of, the

HB0742 Engrossed - 75 - LRB104 04637 BAB 14664 b
1		circuit court.
2		(2) The Secretary may include in any action relief
3		authorized by Section 20-50. The circuit court shall have
4		jurisdiction to award additional relief.
5		(3) In any action brought by the Department, the
6		Department may recover its costs and attorney's fees in
7		connection with prosecuting the action if the Department
8		is the prevailing party in the action.
9		(b) The Attorney General may enforce a violation of
10		Article 5 as an unlawful practice under the Consumer Fraud and
11		Deceptive Business Practices Act.
12		(c) A claim of violation of Article 5 may be asserted in a
13		civil action. Additionally, a prevailing resident may be
14		awarded reasonable attorney's fees and court costs.
15		Article 30. Additional Procedural Provisions
16		Section 30-5. Confidential supervisory information.
17		(a) Confidential supervisory information shall, unless
18		made a matter of public record, not be subject to disclosure
19		under the Freedom of Information Act, and shall only be
20		subject to disclosure pursuant to subpoena or court order as
21		provided in subsection (e).
22		(b) All records of communications or summaries of
23		communications between employees, agents, or representatives
24		of the Department and employees, agents, or representatives of

HB0742 Engrossed - 76 - LRB104 04637 BAB 14664 b
1		other governmental agencies, a provider of any multistate
2		licensing system, or associations or organizations
3		representing federal, state, or local law enforcement or
4		regulatory agencies or providers of any multistate licensing
5		system, pursuant to any regulatory or supervision activity
6		under this Act (1) shall not be subject to disclosure under the
7		Freedom of Information Act, and (2) to the extent the records
8		contain confidential supervisory information, shall only be
9		subject to disclosure pursuant to subpoena or court order as
10		provided in subsection (e).
11		(c) All confidential supervisory information received from
12		other governmental agencies, a multistate licensing system
13		provider, or associations or organizations consisting of
14		employees, agents, or representatives of such agencies or
15		providers, shall not be subject to disclosure under the
16		Freedom of Information Act, and only subject to disclosure
17		pursuant to subpoena or court order as provided in subsection
18		(e).
19		(d) The sharing of any confidential supervisory
20		information under this Act with governmental agencies,
21		providers of any multistate licensing system, or associations
22		or organizations consisting of employees, agents, or
23		representatives of such federal, state, or local law
24		enforcement or regulatory agencies, shall not result in the
25		loss of privilege arising under federal or state law, or the
26		loss of confidentiality protections provided by federal law or

HB0742 Engrossed - 77 - LRB104 04637 BAB 14664 b
1		state law, and are only subject to disclosure pursuant to
2		subpoena or court order as provided in subsection (e).
3		(e) Confidential supervisory information may not be
4		disclosed to anyone other than the regulated person, law
5		enforcement officials or other regulatory agencies that have
6		an appropriate regulatory interest as determined by the
7		Secretary, or to a party presenting a lawful subpoena, order,
8		or other judicial or administrative process to the Secretary.
9		The Secretary may immediately appeal to the court of
10		jurisdiction the disclosure of such confidential supervisory
11		information and seek a stay of the subpoena pending the
12		outcome of the appeal. Reports required of regulated persons
13		by the Secretary under this Act and results of examinations
14		performed by the Secretary under this Act shall be the
15		property of only the Secretary but may be shared with the
16		regulated person. Access under this Act to the books and
17		records of each regulated person shall be limited to the
18		Secretary and his agents as provided in this Act and to the
19		regulated person and its authorized agents and designees. No
20		other person shall have access to the books and records of a
21		regulated person under this Act. Any person upon whom a demand
22		for production of confidential supervisory information is
23		made, whether by subpoena, order, or other judicial or
24		administrative process, must withhold production of the
25		confidential supervisory information and must notify the
26		Secretary of the demand, at which time the Secretary is

HB0742 Engrossed - 78 - LRB104 04637 BAB 14664 b
1		authorized to intervene for the purpose of enforcing the
2		limitations of this Section or seeking the withdrawal or
3		termination of the attempt to compel production of the
4		confidential supervisory information. The Secretary may impose
5		any conditions and limitations on the disclosure of
6		confidential supervisory information that are necessary to
7		protect the confidentiality of such information. Except as
8		authorized by the Secretary, no person obtaining access to
9		confidential supervisory information may make a copy of the
10		confidential supervisory information. The Secretary may
11		condition a decision to disclose confidential supervisory
12		information on entry of a protective order by the court or
13		administrative tribunal presiding in the particular case or on
14		a written agreement of confidentiality. In a case in which a
15		protective order or agreement has already been entered between
16		parties other than the Secretary, the Secretary may
17		nevertheless condition approval for release of confidential
18		supervisory information upon the inclusion of additional or
19		amended provisions in the protective order. The Secretary may
20		authorize a party who obtained the records for use in one case
21		to provide them to another party in another case, subject to
22		any conditions that the Secretary may impose on either or both
23		parties. The requester shall promptly notify other parties to
24		a case of the release of confidential supervisory information
25		obtained and, upon entry of a protective order, shall provide
26		copies of confidential supervisory information to the other

HB0742 Engrossed - 79 - LRB104 04637 BAB 14664 b
1		parties.
2		(f) The Secretary is authorized to enter agreements or
3		sharing arrangements with other governmental agencies,
4		providers of any multistate licensing system, or associations
5		or organizations representing governmental agencies or
6		providers of any multistate licensing system. Notwithstanding
7		the foregoing, the provisions of this Section shall apply
8		regardless of the existence of any such agreement or sharing
9		arrangement.
10		(g) This Section in no way limits any right, privilege, or
11		authority that the Department has pursuant to any other
12		applicable law. This Section does not in any way limit any
13		privilege arising under federal or state law or other
14		exemption from disclosure pursuant to the Freedom of
15		Information Act.
16		(h) Notwithstanding the foregoing, whenever the Secretary
17		determines, in his or her sole discretion, that it is in the
18		public's interest, he or she may publicly disclose information
19		or documents obtained under this Act, unless otherwise
20		prohibited by law.
21		Section 30-10. Additional rulemaking authority.
22		(a) In addition to such powers and rulemaking authority as
23		may be prescribed elsewhere in this Act or other financial
24		laws administered by the Department, the Department is hereby
25		authorized and empowered to adopt rules consistent with the

HB0742 Engrossed - 80 - LRB104 04637 BAB 14664 b
1		purposes of this Act, including, but not limited to:
2		(1) rules in connection with the activities of covered
3		persons, affiliates, and service providers as may be
4		necessary and appropriate for the protection of residents;
5		(2) rules to define the terms used in this Act and as
6		may be necessary and appropriate to interpret and
7		implement the provisions of this Act;
8		(3) rules as may be necessary for the administration
9		and enforcement of this Act;
10		(4) rules to set and collect fees necessary to
11		administer and enforce this Act;
12		(5) rules in connection with the activities of covered
13		persons, affiliates, and service providers as may be
14		necessary and appropriate for the safety and soundness of
15		such covered persons and affiliates and the stability of
16		the financial system in this State.
17		(b) The Secretary is hereby authorized and empowered to
18		make specific rulings, demands, and findings that he or she
19		deems necessary for the proper conduct of the registrants and
20		affiliates thereof.
21		Article 35. Miscellaneous Provisions
22		Section 35-5. No evasion.
23		(a) It shall be unlawful to engage in any device,
24		subterfuge, or pretense to willfully evade or attempt to evade

HB0742 Engrossed - 81 - LRB104 04637 BAB 14664 b
1		the requirements of this Act or any rule or order issued by the
2		Department hereunder.
3		(b) Any financial product, service, or transaction that is
4		willfully structured to evade or attempt to evade the
5		definitions of digital asset or digital asset business
6		activity is a digital asset or digital asset business
7		activity, respectively, for purposes of this Act.
8		Section 35-10. Construction; severability.
9		(a) The provisions of this Act shall be liberally
10		construed to effectuate its purposes.
11		(b) The provisions of this Act are severable under Section
12		1.31 of the Statute on Statutes.
13		(c) To the extent that any provision of this Act is
14		preempted by federal law, the provision shall not apply and
15		shall not be enforced solely as to the extent of the preemption
16		and not as to other circumstances, persons, or applications.
17		Section 35-15. Transition period.
18		(a) A covered person engaging in digital asset business
19		activity without a registration under this Act shall not be
20		considered in violation of Section 15-5 or 5-25 until July 1,
21		2027.
22		(b) A covered person engaging in digital asset business
23		activity shall not be considered in violation of Sections 5-5,
24		5-10, and 5-20 until January 1, 2027.

HB0742 Engrossed - 82 - LRB104 04637 BAB 14664 b
1		(c) A covered exchange shall not be considered in
2		violation of Section 5-15 until January 1, 2027.
3		(d) Notwithstanding the foregoing, the Department may
4		adopt rules pursuant to this Act upon this Act becoming law
5		with such rules not to take effect earlier than January 1,
6		2026.".
7		Article 90. Amendatory provisions
8		Section 90-5. The Freedom of Information Act is amended by
9		changing Section 7.5 as follows:
10		(5 ILCS 140/7.5)
11		Sec. 7.5. Statutory exemptions. To the extent provided for
12		by the statutes referenced below, the following shall be
13		exempt from inspection and copying:
14		(a) All information determined to be confidential
15		under Section 4002 of the Technology Advancement and
16		Development Act.
17		(b) Library circulation and order records identifying
18		library users with specific materials under the Library
19		Records Confidentiality Act.
20		(c) Applications, related documents, and medical
21		records received by the Experimental Organ Transplantation
22		Procedures Board and any and all documents or other
23		records prepared by the Experimental Organ Transplantation

HB0742 Engrossed - 83 - LRB104 04637 BAB 14664 b
1		Procedures Board or its staff relating to applications it
2		has received.
3		(d) Information and records held by the Department of
4		Public Health and its authorized representatives relating
5		to known or suspected cases of sexually transmitted
6		infection or any information the disclosure of which is
7		restricted under the Illinois Sexually Transmitted
8		Infection Control Act.
9		(e) Information the disclosure of which is exempted
10		under Section 30 of the Radon Industry Licensing Act.
11		(f) Firm performance evaluations under Section 55 of
12		the Architectural, Engineering, and Land Surveying
13		Qualifications Based Selection Act.
14		(g) Information the disclosure of which is restricted
15		and exempted under Section 50 of the Illinois Prepaid
16		Tuition Act.
17		(h) Information the disclosure of which is exempted
18		under the State Officials and Employees Ethics Act, and
19		records of any lawfully created State or local inspector
20		general's office that would be exempt if created or
21		obtained by an Executive Inspector General's office under
22		that Act.
23		(i) Information contained in a local emergency energy
24		plan submitted to a municipality in accordance with a
25		local emergency energy plan ordinance that is adopted
26		under Section 11-21.5-5 of the Illinois Municipal Code.

HB0742 Engrossed - 84 - LRB104 04637 BAB 14664 b
1		(j) Information and data concerning the distribution
2		of surcharge moneys collected and remitted by carriers
3		under the Emergency Telephone System Act.
4		(k) Law enforcement officer identification information
5		or driver identification information compiled by a law
6		enforcement agency or the Department of Transportation
7		under Section 11-212 of the Illinois Vehicle Code.
8		(l) Records and information provided to a residential
9		health care facility resident sexual assault and death
10		review team or the Executive Council under the Abuse
11		Prevention Review Team Act.
12		(m) Information provided to the predatory lending
13		database created pursuant to Article 3 of the Residential
14		Real Property Disclosure Act, except to the extent
15		authorized under that Article.
16		(n) Defense budgets and petitions for certification of
17		compensation and expenses for court appointed trial
18		counsel as provided under Sections 10 and 15 of the
19		Capital Crimes Litigation Act (repealed). This subsection
20		(n) shall apply until the conclusion of the trial of the
21		case, even if the prosecution chooses not to pursue the
22		death penalty prior to trial or sentencing.
23		(o) Information that is prohibited from being
24		disclosed under Section 4 of the Illinois Health and
25		Hazardous Substances Registry Act.
26		(p) Security portions of system safety program plans,

HB0742 Engrossed - 85 - LRB104 04637 BAB 14664 b
1		investigation reports, surveys, schedules, lists, data, or
2		information compiled, collected, or prepared by or for the
3		Department of Transportation under Sections 2705-300 and
4		2705-616 of the Department of Transportation Law of the
5		Civil Administrative Code of Illinois, the Regional
6		Transportation Authority under Section 2.11 of the
7		Regional Transportation Authority Act, or the St. Clair
8		County Transit District under the Bi-State Transit Safety
9		Act (repealed).
10		(q) Information prohibited from being disclosed by the
11		Personnel Record Review Act.
12		(r) Information prohibited from being disclosed by the
13		Illinois School Student Records Act.
14		(s) Information the disclosure of which is restricted
15		under Section 5-108 of the Public Utilities Act.
16		(t) (Blank).
17		(u) Records and information provided to an independent
18		team of experts under the Developmental Disability and
19		Mental Health Safety Act (also known as Brian's Law).
20		(v) Names and information of people who have applied
21		for or received Firearm Owner's Identification Cards under
22		the Firearm Owners Identification Card Act or applied for
23		or received a concealed carry license under the Firearm
24		Concealed Carry Act, unless otherwise authorized by the
25		Firearm Concealed Carry Act; and databases under the
26		Firearm Concealed Carry Act, records of the Concealed

HB0742 Engrossed - 86 - LRB104 04637 BAB 14664 b
1		Carry Licensing Review Board under the Firearm Concealed
2		Carry Act, and law enforcement agency objections under the
3		Firearm Concealed Carry Act.
4		(v-5) Records of the Firearm Owner's Identification
5		Card Review Board that are exempted from disclosure under
6		Section 10 of the Firearm Owners Identification Card Act.
7		(w) Personally identifiable information which is
8		exempted from disclosure under subsection (g) of Section
9		19.1 of the Toll Highway Act.
10		(x) Information which is exempted from disclosure
11		under Section 5-1014.3 of the Counties Code or Section
12		8-11-21 of the Illinois Municipal Code.
13		(y) Confidential information under the Adult
14		Protective Services Act and its predecessor enabling
15		statute, the Elder Abuse and Neglect Act, including
16		information about the identity and administrative finding
17		against any caregiver of a verified and substantiated
18		decision of abuse, neglect, or financial exploitation of
19		an eligible adult maintained in the Registry established
20		under Section 7.5 of the Adult Protective Services Act.
21		(z) Records and information provided to a fatality
22		review team or the Illinois Fatality Review Team Advisory
23		Council under Section 15 of the Adult Protective Services
24		Act.
25		(aa) Information which is exempted from disclosure
26		under Section 2.37 of the Wildlife Code.

HB0742 Engrossed - 87 - LRB104 04637 BAB 14664 b
1		(bb) Information which is or was prohibited from
2		disclosure by the Juvenile Court Act of 1987.
3		(cc) Recordings made under the Law Enforcement
4		Officer-Worn Body Camera Act, except to the extent
5		authorized under that Act.
6		(dd) Information that is prohibited from being
7		disclosed under Section 45 of the Condominium and Common
8		Interest Community Ombudsperson Act.
9		(ee) Information that is exempted from disclosure
10		under Section 30.1 of the Pharmacy Practice Act.
11		(ff) Information that is exempted from disclosure
12		under the Revised Uniform Unclaimed Property Act.
13		(gg) Information that is prohibited from being
14		disclosed under Section 7-603.5 of the Illinois Vehicle
15		Code.
16		(hh) Records that are exempt from disclosure under
17		Section 1A-16.7 of the Election Code.
18		(ii) Information which is exempted from disclosure
19		under Section 2505-800 of the Department of Revenue Law of
20		the Civil Administrative Code of Illinois.
21		(jj) Information and reports that are required to be
22		submitted to the Department of Labor by registering day
23		and temporary labor service agencies but are exempt from
24		disclosure under subsection (a-1) of Section 45 of the Day
25		and Temporary Labor Services Act.
26		(kk) Information prohibited from disclosure under the

HB0742 Engrossed - 88 - LRB104 04637 BAB 14664 b
1		Seizure and Forfeiture Reporting Act.
2		(ll) Information the disclosure of which is restricted
3		and exempted under Section 5-30.8 of the Illinois Public
4		Aid Code.
5		(mm) Records that are exempt from disclosure under
6		Section 4.2 of the Crime Victims Compensation Act.
7		(nn) Information that is exempt from disclosure under
8		Section 70 of the Higher Education Student Assistance Act.
9		(oo) Communications, notes, records, and reports
10		arising out of a peer support counseling session
11		prohibited from disclosure under the First Responders
12		Suicide Prevention Act.
13		(pp) Names and all identifying information relating to
14		an employee of an emergency services provider or law
15		enforcement agency under the First Responders Suicide
16		Prevention Act.
17		(qq) Information and records held by the Department of
18		Public Health and its authorized representatives collected
19		under the Reproductive Health Act.
20		(rr) Information that is exempt from disclosure under
21		the Cannabis Regulation and Tax Act.
22		(ss) Data reported by an employer to the Department of
23		Human Rights pursuant to Section 2-108 of the Illinois
24		Human Rights Act.
25		(tt) Recordings made under the Children's Advocacy
26		Center Act, except to the extent authorized under that

HB0742 Engrossed - 89 - LRB104 04637 BAB 14664 b
1		Act.
2		(uu) Information that is exempt from disclosure under
3		Section 50 of the Sexual Assault Evidence Submission Act.
4		(vv) Information that is exempt from disclosure under
5		subsections (f) and (j) of Section 5-36 of the Illinois
6		Public Aid Code.
7		(ww) Information that is exempt from disclosure under
8		Section 16.8 of the State Treasurer Act.
9		(xx) Information that is exempt from disclosure or
10		information that shall not be made public under the
11		Illinois Insurance Code.
12		(yy) Information prohibited from being disclosed under
13		the Illinois Educational Labor Relations Act.
14		(zz) Information prohibited from being disclosed under
15		the Illinois Public Labor Relations Act.
16		(aaa) Information prohibited from being disclosed
17		under Section 1-167 of the Illinois Pension Code.
18		(bbb) Information that is prohibited from disclosure
19		by the Illinois Police Training Act and the Illinois State
20		Police Act.
21		(ccc) Records exempt from disclosure under Section
22		2605-304 of the Illinois State Police Law of the Civil
23		Administrative Code of Illinois.
24		(ddd) Information prohibited from being disclosed
25		under Section 35 of the Address Confidentiality for
26		Victims of Domestic Violence, Sexual Assault, Human

HB0742 Engrossed - 90 - LRB104 04637 BAB 14664 b
1		Trafficking, or Stalking Act.
2		(eee) Information prohibited from being disclosed
3		under subsection (b) of Section 75 of the Domestic
4		Violence Fatality Review Act.
5		(fff) Images from cameras under the Expressway Camera
6		Act. This subsection (fff) is inoperative on and after
7		July 1, 2025.
8		(ggg) Information prohibited from disclosure under
9		paragraph (3) of subsection (a) of Section 14 of the Nurse
10		Agency Licensing Act.
11		(hhh) Information submitted to the Illinois State
12		Police in an affidavit or application for an assault
13		weapon endorsement, assault weapon attachment endorsement,
14		.50 caliber rifle endorsement, or .50 caliber cartridge
15		endorsement under the Firearm Owners Identification Card
16		Act.
17		(iii) Data exempt from disclosure under Section 50 of
18		the School Safety Drill Act.
19		(jjj) Information exempt from disclosure under Section
20		30 of the Insurance Data Security Law.
21		(kkk) Confidential business information prohibited
22		from disclosure under Section 45 of the Paint Stewardship
23		Act.
24		(lll) Data exempt from disclosure under Section
25		2-3.196 of the School Code.
26		(mmm) Information prohibited from being disclosed

HB0742 Engrossed - 91 - LRB104 04637 BAB 14664 b
1		under subsection (e) of Section 1-129 of the Illinois
2		Power Agency Act.
3		(nnn) Materials received by the Department of Commerce
4		and Economic Opportunity that are confidential under the
5		Music and Musicians Tax Credit and Jobs Act.
6		(ooo) Data or information provided pursuant to Section
7		20 of the Statewide Recycling Needs and Assessment Act.
8		(ppp) Information that is exempt from disclosure under
9		Section 28-11 of the Lawful Health Care Activity Act.
10		(qqq) Information that is exempt from disclosure under
11		Section 7-101 of the Illinois Human Rights Act.
12		(rrr) Information prohibited from being disclosed
13		under Section 4-2 of the Uniform Money Transmission
14		Modernization Act.
15		(sss) Information exempt from disclosure under Section
16		40 of the Student-Athlete Endorsement Rights Act.
17		(ttt) Audio recordings made under Section 30 of the
18		Illinois State Police Act, except to the extent authorized
19		under that Section.
20		(uuu) Information prohibited from being disclosed
21		under Section 30-5 of the Digital Assets Regulation Act.
22		(Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22;
23		102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.
24		8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;
25		102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.
26		6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,

HB0742 Engrossed - 92 - LRB104 04637 BAB 14664 b
1		eff. 1-1-24; 103-472, eff. 8-1-24; 103-508, eff. 8-4-23;
2		103-580, eff. 12-8-23; 103-592, eff. 6-7-24; 103-605, eff.
3		7-1-24; 103-636, eff. 7-1-24; 103-724, eff. 1-1-25; 103-786,
4		eff. 8-7-24; 103-859, eff. 8-9-24; 103-991, eff. 8-9-24;
5		103-1049, eff. 8-9-24; 103-1081, eff. 3-21-25.)
6		Section 90-10. The State Finance Act is amended by adding
7		Section 5.1030 as follows:
8		(30 ILCS 105/5.1030 new)
9		Sec. 5.1030. The Consumer Protection Fund.
10		Section 90-15. The Illinois Banking Act is amended by
11		changing Sections 2 and 30 as follows:
12		(205 ILCS 5/2)    (from Ch. 17, par. 302)
13		Sec. 2. General definitions. In this Act, unless the
14		context otherwise requires, the following words and phrases
15		shall have the following meanings:
16		"Accommodation party" shall have the meaning ascribed to
17		that term in Section 3-419 of the Uniform Commercial Code.
18		"Action" in the sense of a judicial proceeding includes
19		recoupments, counterclaims, set-off, and any other proceeding
20		in which rights are determined.
21		"Affiliate facility" of a bank means a main banking
22		premises or branch of another commonly owned bank. The main

HB0742 Engrossed - 93 - LRB104 04637 BAB 14664 b
1		banking premises or any branch of a bank may be an "affiliate
2		facility" with respect to one or more other commonly owned
3		banks.
4		"Appropriate federal banking agency" means the Federal
5		Deposit Insurance Corporation, the Federal Reserve Bank of
6		Chicago, or the Federal Reserve Bank of St. Louis, as
7		determined by federal law.
8		"Bank" means any person doing a banking business whether
9		subject to the laws of this or any other jurisdiction.
10		A "banking house", "branch", "branch bank", or "branch
11		office" shall mean any place of business of a bank at which
12		deposits are received, checks paid, or loans made, but shall
13		not include any place at which only records thereof are made,
14		posted, or kept. A place of business at which deposits are
15		received, checks paid, or loans made shall not be deemed to be
16		a branch, branch bank, or branch office if the place of
17		business is adjacent to and connected with the main banking
18		premises, or if it is separated from the main banking premises
19		by not more than an alley; provided always that (i) if the
20		place of business is separated by an alley from the main
21		banking premises there is a connection between the two by
22		public or private way or by subterranean or overhead passage,
23		and (ii) if the place of business is in a building not wholly
24		occupied by the bank, the place of business shall not be within
25		any office or room in which any other business or service of
26		any kind or nature other than the business of the bank is

HB0742 Engrossed - 94 - LRB104 04637 BAB 14664 b
1		conducted or carried on. A place of business at which deposits
2		are received, checks paid, or loans made shall not be deemed to
3		be a branch, branch bank, or branch office (i) of any bank if
4		the place is a terminal established and maintained in
5		accordance with paragraph (17) of Section 5 of this Act, or
6		(ii) of a commonly owned bank by virtue of transactions
7		conducted at that place on behalf of the other commonly owned
8		bank under paragraph (23) of Section 5 of this Act if the place
9		is an affiliate facility with respect to the other bank.
10		"Branch of an out-of-state bank" means a branch
11		established or maintained in Illinois by an out-of-state bank
12		as a result of a merger between an Illinois bank and the
13		out-of-state bank that occurs on or after May 31, 1997, or any
14		branch established by the out-of-state bank following the
15		merger.
16		"Bylaws" means the bylaws of a bank that are adopted by the
17		bank's board of directors or shareholders for the regulation
18		and management of the bank's affairs. If the bank operates as a
19		limited liability company, however, "bylaws" means the
20		operating agreement of the bank.
21		"Call report fee" means the fee to be paid to the
22		Commissioner by each State bank pursuant to paragraph (a) of
23		subsection (3) of Section 48 of this Act.
24		"Capital" includes the aggregate of outstanding capital
25		stock and preferred stock.
26		"Cash flow reserve account" means the account within the

HB0742 Engrossed - 95 - LRB104 04637 BAB 14664 b
1		books and records of the Commissioner of Banks and Real Estate
2		used to record funds designated to maintain a reasonable Bank
3		and Trust Company Fund operating balance to meet agency
4		obligations on a timely basis.
5		"Charter" includes the original charter and all amendments
6		thereto and articles of merger or consolidation.
7		"Commissioner" means the Commissioner of Banks and Real
8		Estate, except that beginning on April 6, 2009 (the effective
9		date of Public Act 95-1047), all references in this Act to the
10		Commissioner of Banks and Real Estate are deemed, in
11		appropriate contexts, to be references to the Secretary of
12		Financial and Professional Regulation.
13		"Commonly owned banks" means 2 or more banks that each
14		qualify as a bank subsidiary of the same bank holding company
15		pursuant to Section 18 of the Federal Deposit Insurance Act;
16		"commonly owned bank" refers to one of a group of commonly
17		owned banks but only with respect to one or more of the other
18		banks in the same group.
19		"Community" means a city, village, or incorporated town
20		and also includes the area served by the banking offices of a
21		bank, but need not be limited or expanded to conform to the
22		geographic boundaries of units of local government.
23		"Company" means a corporation, limited liability company,
24		partnership, business trust, association, or similar
25		organization and, unless specifically excluded, includes a
26		"State bank" and a "bank".

HB0742 Engrossed - 96 - LRB104 04637 BAB 14664 b
1		"Consolidating bank" means a party to a consolidation.
2		"Consolidation" takes place when 2 or more banks, or a
3		trust company and a bank, are extinguished and by the same
4		process a new bank is created, taking over the assets and
5		assuming the liabilities of the banks or trust company passing
6		out of existence.
7		"Continuing bank" means a merging bank, the charter of
8		which becomes the charter of the resulting bank.
9		"Converting bank" means a State bank converting to become
10		a national bank, or a national bank converting to become a
11		State bank.
12		"Converting trust company" means a trust company
13		converting to become a State bank.
14		"Court" means a court of competent jurisdiction.
15		"Director" means a member of the board of directors of a
16		bank. In the case of a manager-managed limited liability
17		company, however, "director" means a manager of the bank and,
18		in the case of a member-managed limited liability company,
19		"director" means a member of the bank. The term "director"
20		does not include an advisory director, honorary director,
21		director emeritus, or similar person, unless the person is
22		otherwise performing functions similar to those of a member of
23		the board of directors.
24		"Director of Banking" means the Director of the Division
25		of Banking of the Department of Financial and Professional
26		Regulation.

HB0742 Engrossed - 97 - LRB104 04637 BAB 14664 b
1		"Eligible depository institution" means an insured savings
2		association that is in default, an insured savings association
3		that is in danger of default, a State or national bank that is
4		in default or a State or national bank that is in danger of
5		default, as those terms are defined in this Section, or a new
6		bank as that term is defined in Section 11(m) of the Federal
7		Deposit Insurance Act or a bridge bank as that term is defined
8		in Section 11(n) of the Federal Deposit Insurance Act or a new
9		federal savings association authorized under Section
10		11(d)(2)(f) of the Federal Deposit Insurance Act.
11		"Fiduciary" means trustee, agent, executor, administrator,
12		committee, guardian for a minor or for a person under legal
13		disability, receiver, trustee in bankruptcy, assignee for
14		creditors, or any holder of similar position of trust.
15		"Financial institution" means a bank, savings bank,
16		savings and loan association, credit union, or any licensee
17		under the Consumer Installment Loan Act or the Sales Finance
18		Agency Act and, for purposes of Section 48.3, any proprietary
19		network, funds transfer corporation, or other entity providing
20		electronic funds transfer services, or any corporate
21		fiduciary, its subsidiaries, affiliates, parent company, or
22		contractual service provider that is examined by the
23		Commissioner. For purposes of Section 5c and subsection (b) of
24		Section 13 of this Act, "financial institution" includes any
25		proprietary network, funds transfer corporation, or other
26		entity providing electronic funds transfer services, and any

HB0742 Engrossed - 98 - LRB104 04637 BAB 14664 b
1		corporate fiduciary.
2		"Foundation" means the Illinois Bank Examiners' Education
3		Foundation.
4		"General obligation" means a bond, note, debenture,
5		security, or other instrument evidencing an obligation of the
6		government entity that is the issuer that is supported by the
7		full available resources of the issuer, the principal and
8		interest of which is payable in whole or in part by taxation.
9		"Guarantee" means an undertaking or promise to answer for
10		payment of another's debt or performance of another's duty,
11		liability, or obligation whether "payment guaranteed" or
12		"collection guaranteed".
13		"In danger of default" means a State or national bank, a
14		federally chartered insured savings association, or an
15		Illinois state chartered insured savings association with
16		respect to which the Commissioner or the appropriate federal
17		banking agency has advised the Federal Deposit Insurance
18		Corporation that:
19		(1) in the opinion of the Commissioner or the
20		appropriate federal banking agency,
21		(A) the State or national bank or insured savings
22		association is not likely to be able to meet the
23		demands of the State or national bank's or savings
24		association's obligations in the normal course of
25		business; and
26		(B) there is no reasonable prospect that the State

HB0742 Engrossed - 99 - LRB104 04637 BAB 14664 b
1		or national bank or insured savings association will
2		be able to meet those demands or pay those obligations
3		without federal assistance; or
4		(2) in the opinion of the Commissioner or the
5		appropriate federal banking agency,
6		(A) the State or national bank or insured savings
7		association has incurred or is likely to incur losses
8		that will deplete all or substantially all of its
9		capital; and
10		(B) there is no reasonable prospect that the
11		capital of the State or national bank or insured
12		savings association will be replenished without
13		federal assistance.
14		"In default" means, with respect to a State or national
15		bank or an insured savings association, any adjudication or
16		other official determination by any court of competent
17		jurisdiction, the Commissioner, the appropriate federal
18		banking agency, or other public authority pursuant to which a
19		conservator, receiver, or other legal custodian is appointed
20		for a State or national bank or an insured savings
21		association.
22		"Insured savings association" means any federal savings
23		association chartered under Section 5 of the federal Home
24		Owners' Loan Act and any State savings association chartered
25		under the Illinois Savings and Loan Act of 1985 or a
26		predecessor Illinois statute, the deposits of which are

HB0742 Engrossed - 100 - LRB104 04637 BAB 14664 b
1		insured by the Federal Deposit Insurance Corporation. The term
2		also includes a savings bank organized or operating under the
3		Savings Bank Act.
4		"Insured savings association in recovery" means an insured
5		savings association that is not an eligible depository
6		institution and that does not meet the minimum capital
7		requirements applicable with respect to the insured savings
8		association.
9		"Issuer" means for purposes of Section 33 every person who
10		shall have issued or proposed to issue any security; except
11		that (1) with respect to certificates of deposit, voting trust
12		certificates, collateral-trust certificates, and certificates
13		of interest or shares in an unincorporated investment trust
14		not having a board of directors (or persons performing similar
15		functions), "issuer" means the person or persons performing
16		the acts and assuming the duties of depositor or manager
17		pursuant to the provisions of the trust, agreement, or
18		instrument under which the securities are issued; (2) with
19		respect to trusts other than those specified in clause (1)
20		above, where the trustee is a corporation authorized to accept
21		and execute trusts, "issuer" means the entrusters, depositors,
22		or creators of the trust and any manager or committee charged
23		with the general direction of the affairs of the trust
24		pursuant to the provisions of the agreement or instrument
25		creating the trust; and (3) with respect to equipment trust
26		certificates or like securities, "issuer" means the person to

HB0742 Engrossed - 101 - LRB104 04637 BAB 14664 b
1		whom the equipment or property is or is to be leased or
2		conditionally sold.
3		"Letter of credit" and "customer" shall have the meanings
4		ascribed to those terms in Section 5-102 of the Uniform
5		Commercial Code.
6		"Main banking premises" means the location that is
7		designated in a bank's charter as its main office.
8		"Maker or obligor" means for purposes of Section 33 the
9		issuer of a security, the promisor in a debenture or other debt
10		security, or the mortgagor or grantor of a trust deed or
11		similar conveyance of a security interest in real or personal
12		property.
13		"Merged bank" means a merging bank that is not the
14		continuing, resulting, or surviving bank in a consolidation or
15		merger.
16		"Merger" includes consolidation.
17		"Merging bank" means a party to a bank merger.
18		"Merging trust company" means a trust company party to a
19		merger with a State bank.
20		"Mid-tier bank holding company" means a corporation that
21		(a) owns 100% of the issued and outstanding shares of each
22		class of stock of a State bank, (b) has no other subsidiaries,
23		and (c) 100% of the issued and outstanding shares of the
24		corporation are owned by a parent bank holding company.
25		"Municipality" means any municipality, political
26		subdivision, school district, taxing district, or agency.

HB0742 Engrossed - 102 - LRB104 04637 BAB 14664 b
1		"National bank" means a national banking association
2		located in this State and after May 31, 1997, means a national
3		banking association without regard to its location.
4		"Out-of-state bank" means a bank chartered under the laws
5		of a state other than Illinois, a territory of the United
6		States, or the District of Columbia.
7		"Parent bank holding company" means a corporation that is
8		a bank holding company as that term is defined in the Illinois
9		Bank Holding Company Act of 1957 and owns 100% of the issued
10		and outstanding shares of a mid-tier bank holding company.
11		"Person" means an individual, corporation, limited
12		liability company, partnership, joint venture, trust, estate,
13		or unincorporated association.
14		"Public agency" means the State of Illinois, the various
15		counties, townships, cities, towns, villages, school
16		districts, educational service regions, special road
17		districts, public water supply districts, fire protection
18		districts, drainage districts, levee districts, sewer
19		districts, housing authorities, the Illinois Bank Examiners'
20		Education Foundation, the Chicago Park District, and all other
21		political corporations or subdivisions of the State of
22		Illinois, whether now or hereafter created, whether herein
23		specifically mentioned or not, and shall also include any
24		other state or any political corporation or subdivision of
25		another state.
26		"Public funds" or "public money" means current operating

HB0742 Engrossed - 103 - LRB104 04637 BAB 14664 b
1		funds, special funds, interest and sinking funds, and funds of
2		any kind or character belonging to, in the custody of, or
3		subject to the control or regulation of the United States or a
4		public agency. "Public funds" or "public money" shall include
5		funds held by any of the officers, agents, or employees of the
6		United States or of a public agency in the course of their
7		official duties and, with respect to public money of the
8		United States, shall include Postal Savings funds.
9		"Published" means, unless the context requires otherwise,
10		the publishing of the notice or instrument referred to in some
11		newspaper of general circulation in the community in which the
12		bank is located at least once each week for 3 successive weeks.
13		Publishing shall be accomplished by, and at the expense of,
14		the bank required to publish. Where publishing is required,
15		the bank shall submit to the Commissioner that evidence of the
16		publication as the Commissioner shall deem appropriate.
17		"Qualified financial contract" means any security
18		contract, commodity contract, forward contract, including spot
19		and forward foreign exchange contracts, repurchase agreement,
20		swap agreement, and any similar agreement, any option to enter
21		into any such agreement, including any combination of the
22		foregoing, and any master agreement for such agreements. A
23		master agreement, together with all supplements thereto, shall
24		be treated as one qualified financial contract. The contract,
25		option, agreement, or combination of contracts, options, or
26		agreements shall be reflected upon the books, accounts, or

HB0742 Engrossed - 104 - LRB104 04637 BAB 14664 b
1		records of the bank, or a party to the contract shall provide
2		documentary evidence of such agreement.
3		"Recorded" means the filing or recording of the notice or
4		instrument referred to in the office of the Recorder of the
5		county wherein the bank is located.
6		"Resulting bank" means the bank resulting from a merger or
7		conversion.
8		"Secretary" means the Secretary of Financial and
9		Professional Regulation, or a person authorized by the
10		Secretary or by this Act to act in the Secretary's stead.
11		"Securities" means stocks, bonds, debentures, notes, or
12		other similar obligations.
13		"Special purpose trust company" means a special purpose
14		trust company under Article IIA of the Corporate Fiduciary
15		Act.
16		"Stand-by letter of credit" means a letter of credit under
17		which drafts are payable upon the condition the customer has
18		defaulted in performance of a duty, liability, or obligation.
19		"State bank" means any banking corporation that has a
20		banking charter issued by the Commissioner under this Act.
21		"State Banking Board" means the State Banking Board of
22		Illinois.
23		"Subsidiary" with respect to a specified company means a
24		company that is controlled by the specified company. For
25		purposes of paragraphs (8) and (12) of Section 5 of this Act,
26		"control" means the exercise of operational or managerial

HB0742 Engrossed - 105 - LRB104 04637 BAB 14664 b
1		control of a corporation by the bank, either alone or together
2		with other affiliates of the bank.
3		"Surplus" means the aggregate of (i) amounts paid in
4		excess of the par value of capital stock and preferred stock;
5		(ii) amounts contributed other than for capital stock and
6		preferred stock and allocated to the surplus account; and
7		(iii) amounts transferred from undivided profits.
8		"Tier 1 Capital" and "Tier 2 Capital" have the meanings
9		assigned to those terms in regulations promulgated for the
10		appropriate federal banking agency of a state bank, as those
11		regulations are now or hereafter amended.
12		"Trust company" means a limited liability company or
13		corporation incorporated in this State for the purpose of
14		accepting and executing trusts.
15		"Undivided profits" means undistributed earnings less
16		discretionary transfers to surplus.
17		"Unimpaired capital and unimpaired surplus", for the
18		purposes of paragraph (21) of Section 5 and Sections 32, 33,
19		34, 35.1, 35.2, and 47 of this Act means the sum of the state
20		bank's Tier 1 Capital and Tier 2 Capital plus such other
21		shareholder equity as may be included by regulation of the
22		Commissioner. Unimpaired capital and unimpaired surplus shall
23		be calculated on the basis of the date of the last quarterly
24		call report filed with the Commissioner preceding the date of
25		the transaction for which the calculation is made, provided
26		that: (i) when a material event occurs after the date of the

HB0742 Engrossed - 106 - LRB104 04637 BAB 14664 b
1		last quarterly call report filed with the Commissioner that
2		reduces or increases the bank's unimpaired capital and
3		unimpaired surplus by 10% or more, then the unimpaired capital
4		and unimpaired surplus shall be calculated from the date of
5		the material event for a transaction conducted after the date
6		of the material event; and (ii) if the Commissioner determines
7		for safety and soundness reasons that a state bank should
8		calculate unimpaired capital and unimpaired surplus more
9		frequently than provided by this paragraph, the Commissioner
10		may by written notice direct the bank to calculate unimpaired
11		capital and unimpaired surplus at a more frequent interval. In
12		the case of a state bank newly chartered under Section 13 or a
13		state bank resulting from a merger, consolidation, or
14		conversion under Sections 21 through 26 for which no preceding
15		quarterly call report has been filed with the Commissioner,
16		unimpaired capital and unimpaired surplus shall be calculated
17		for the first calendar quarter on the basis of the effective
18		date of the charter, merger, consolidation, or conversion.
19		(Source: P.A. 95-924, eff. 8-26-08; 95-1047, eff. 4-6-09;
20		96-1000, eff. 7-2-10; 96-1163, eff. 1-1-11; revised 8-6-24.)
21		(205 ILCS 5/30)    (from Ch. 17, par. 337)
22		Sec. 30. Conversion; merger with trust company or special
23		purpose trust company. Upon approval by the Commissioner a
24		trust company having power so to do under the law under which
25		it is organized may convert into a state bank or may merge into

HB0742 Engrossed - 107 - LRB104 04637 BAB 14664 b
1		a state bank as prescribed by this Act; except that the action
2		by a trust company shall be taken in the manner prescribed by
3		and shall be subject to limitations and requirements imposed
4		by the law under which it is organized which law shall also
5		govern the rights of its dissenting stockholders. The rights
6		of dissenting stockholders of a state bank shall be governed
7		by Section 29 of this Act. The conversion or merger procedure
8		shall be:
9		(1) In the case of a merger, the board of directors of both
10		the merging trust company and the merging bank by a majority of
11		the entire board in each case shall approve a merger agreement
12		which shall contain:
13		(a) The name and location of the merging bank and of
14		the merging trust company and a list of the stockholders
15		of each as of the date of the merger agreement;
16		(b) With respect to the resulting bank (i) its name
17		and place of business; (ii) the amount of capital, surplus
18		and reserve for operating expenses; (iii) the classes and
19		the number of shares of stock and the par value of each
20		share; (iv) the charter which is to be the charter of the
21		resulting bank, together with the amendments to the
22		continuing charter and to the continuing by-laws; and (v)
23		a detailed financial statement showing the assets and
24		liabilities after the proposed merger;
25		(c) Provisions governing the manner of converting the
26		shares of the merging bank and of the merging trust

HB0742 Engrossed - 108 - LRB104 04637 BAB 14664 b
1		company into shares of the resulting bank;
2		(d) A statement that the merger agreement is subject
3		to approval by the Commissioner and by the stockholders of
4		the merging bank and the merging trust company, and that
5		whether approved or disapproved, the parties thereto will
6		pay the Commissioner's expenses of examination;
7		(e) Provisions governing the manner of disposing of
8		the shares of the resulting bank not taken by the
9		dissenting stockholders of the merging trust company; and
10		(f) Such other provisions as the Commissioner may
11		reasonably require to enable him to discharge his duties
12		with respect to the merger.
13		(2) After approval by the board of directors of the
14		merging bank and of the merging trust company, the merger
15		agreement shall be submitted to the Commissioner for approval
16		together with the certified copies of the authorizing
17		resolution of each board of directors showing approval by a
18		majority of each board.
19		(3) After receipt by the Commissioner of the papers
20		specified in subsection (2), he shall approve or disapprove
21		the merger agreement. The Commissioner shall not approve the
22		agreement unless he shall be of the opinion and finds:
23		(a) That the resulting bank meets the requirements of
24		this Act for the formation of a new bank at the proposed
25		place of business of the resulting bank;
26		(b) That the same matters exist in respect of the

HB0742 Engrossed - 109 - LRB104 04637 BAB 14664 b
1		resulting bank which would have been required under
2		Section 10 of this Act for the organization of a new bank;
3		and
4		(c) That the merger agreement is fair to all persons
5		affected. If the Commissioner disapproves the merger
6		agreement, he shall state his objections in writing and
7		give an opportunity to the merging bank and the merging
8		trust company to obviate such objections.
9		(4) To be effective, if approved by the Commissioner, a
10		merger of a bank and a trust company where there is to be a
11		resulting bank must be approved by the affirmative vote of the
12		holders of at least two-thirds of the outstanding shares of
13		stock of the merging bank entitled to vote at a meeting called
14		to consider such action, unless holders of preferred stock are
15		entitled to vote as a class in respect thereof, in which event
16		the proposed merger shall be adopted upon receiving the
17		affirmative vote of the holders of at least two-thirds of the
18		outstanding shares of each class of shares entitled to vote as
19		a class in respect thereof and of the total outstanding shares
20		entitled to vote at such meeting and must be approved by the
21		stockholders of the merging trust company as provided by the
22		Act under which it is organized. The prescribed vote by the
23		merging bank and the merging trust company shall constitute
24		the adoption of the charter and by-laws of the continuing
25		bank, including the amendments in the merger agreement, as the
26		charter and by-laws of the resulting bank. Written or printed

HB0742 Engrossed - 110 - LRB104 04637 BAB 14664 b
1		notice of the meeting of the stockholders of the merging bank
2		shall be given to each stockholder of record entitled to vote
3		at such meeting at least thirty days before such meeting and in
4		the manner provided in this Act for the giving of notice of
5		meetings of stockholders. The notice shall state that
6		dissenting stockholders of the merging trust company will be
7		entitled to payment of the value of those shares which are
8		voted against approval of the merger, if a proper demand is
9		made on the resulting bank and the requirements of the Act
10		under which the merging trust company is organized are
11		satisfied.
12		(5) Unless a later date is specified in the merger
13		agreement, the merger shall become effective upon the filing
14		with the Commissioner of the executed merger agreement,
15		together with copies of the resolutions of the stockholders of
16		the merging bank and the merging trust company approving it,
17		certified by the president or a vice-president or, the cashier
18		and also by the secretary or other officer charged with
19		keeping the records. The charter of the merging trust company
20		shall thereupon automatically terminate. The Commissioner
21		shall thereupon issue to the continuing bank a certificate of
22		merger which shall specify the name of the merging trust
23		company, the name of the continuing bank and the amendments to
24		the charter of the continuing bank provided for by the merger
25		agreement. Such certificate shall be conclusive evidence of
26		the merger and of the correctness of all proceedings therefor

HB0742 Engrossed - 111 - LRB104 04637 BAB 14664 b
1		in all courts and places including the office of the Secretary
2		of State, and said certificate shall be recorded.
3		(6) In the case of a conversion, a trust company shall
4		apply for a charter by filing with the Commissioner:
5		(a) A certificate signed by its president, or a
6		vice-president, and by a majority of the entire board of
7		directors setting forth the corporate action taken in
8		compliance with the provisions of the Act under which it
9		is organized governing the conversion of a trust company
10		to a bank or governing the merger of a trust company into
11		another corporation;
12		(b) The plan of conversion and the proposed charter
13		approved by the stockholders for the operation of the
14		trust company as a bank. The plan of conversion shall
15		contain (i) the name and location proposed for the
16		converting trust company; (ii) a list of its stockholders
17		as of the date of the stockholders' approval of the plan of
18		conversion; (iii) the amount of its capital, surplus and
19		reserve for operating expenses; (iv) the classes and the
20		number of shares of stock and the par value of each share;
21		(v) the charter which is to be the charter of the resulting
22		bank; and (vi) a detailed financial statement showing the
23		assets and liabilities of the converting trust company;
24		(c) A statement that the plan of conversion is subject
25		to approval by the Commissioner and that, whether approved
26		or disapproved, the converting trust company will pay the

HB0742 Engrossed - 112 - LRB104 04637 BAB 14664 b
1		Commissioner's expenses of examination; and
2		(d) Such other instruments as the Commissioner may
3		reasonably require to enable him to discharge his duties
4		with respect to the conversion.
5		(7) After receipt by the Commissioner of the papers
6		specified in subsection (6), he shall approve or disapprove
7		the plan of conversion. The Commissioner shall not approve the
8		plan of conversion unless he shall be of the opinion and finds:
9		(a) That the resulting bank meets the requirements of
10		this Act for the formation of a new bank at the proposed
11		place of business of the resulting bank;
12		(b) That the same matters exist in respect of the
13		resulting bank which would have been required under
14		Section 10 of this Act for the organization of a new bank;
15		and
16		(c) That the plan of conversion is fair to all persons
17		affected.
18		If the commissioner disapproves the plan of conversion, he
19		shall state his objections in writing and give an opportunity
20		to the converting trust company to obviate such objections.
21		(8) Unless a later date is specified in the plan of
22		conversion, the conversion shall become effective upon the
23		Commissioner's approval, and the charter proposed in the plan
24		of conversion shall constitute the charter of the resulting
25		bank. The Commissioner shall issue a certificate of conversion
26		which shall specify the name of the converting trust company,

HB0742 Engrossed - 113 - LRB104 04637 BAB 14664 b
1		the name of the resulting bank and the charter provided for by
2		said plan of conversion. Such certificate shall be conclusive
3		evidence of the conversion and of the correctness of all
4		proceedings therefor in all courts and places including the
5		office of the Secretary of State, and such certificate shall
6		be recorded.
7		(8.5) A special purpose trust company under Article IIA of
8		the Corporate Fiduciary Act may merge with a State bank or
9		convert to a State bank as if the special purpose trust company
10		were a trust company under Article II of the Corporate
11		Fiduciary Act, subject to rules adopted by the Department.
12		(9) In the case of either a merger or a conversion under
13		this Section 30, the resulting bank shall be considered the
14		same business and corporate entity as each merging bank and
15		merging trust company or as the converting trust company with
16		all the property, rights, powers, duties and obligations of
17		each as specified in Section 28 of this Act.
18		(Source: P.A. 91-357, eff. 7-29-99.)
19		Section 90-20. The Corporate Fiduciary Act is amended by
20		changing Sections 1-5.08, 2-1, 4-1, 4-2, 4-5, 4A-15, and 5-1
21		and by adding Article IIA as follows:
22		(205 ILCS 620/1-5.08)    (from Ch. 17, par. 1551-5.08)
23		Sec. 1-5.08. "Foreign corporation" means:
24		(a) any bank, savings and loan association, savings bank,

HB0742 Engrossed - 114 - LRB104 04637 BAB 14664 b
1		or other corporation, limited liability company, or other
2		entity now or hereafter organized under the laws of any state
3		or territory of the United States of America, including the
4		District of Columbia, other than the State of Illinois;
5		(b) any national banking association having its principal
6		place of business in any state or territory of the United
7		States of America, including the District of Columbia, other
8		than the State of Illinois; and
9		(c) any federal savings and loan association or federal
10		savings bank having its principal place of business in any
11		state or territory of the United States of America, including
12		the District of Columbia, other than the State of Illinois.
13		(Source: P.A. 91-97, eff. 7-9-99.)
14		(205 ILCS 620/2-1)    (from Ch. 17, par. 1552-1)
15		Sec. 2-1. (a) Any corporation which has been or shall be
16		incorporated under the general corporation laws of this State
17		and any limited liability company established under the
18		Limited Liability Company Act for the purpose of accepting and
19		executing trusts, and any state bank, state savings and loan
20		association, state savings bank, or other special corporation
21		now or hereafter authorized by law to accept or execute
22		trusts, may be appointed to act as a fiduciary in any capacity
23		a natural person or corporation may act, and shall include,
24		but not be limited to, acting as assignee or trustee by deed,
25		and executor, guardian or trustee by will, custodian under the

HB0742 Engrossed - 115 - LRB104 04637 BAB 14664 b
1		Illinois Uniform Transfers to Minors Act and such appointment
2		shall be of like force as in case of appointment of a natural
3		person and shall be designated a corporate fiduciary.
4		(b) No corporate fiduciary shall dissolve or cease its
5		corporate existence without prior notice to and approval by
6		the Commissioner and compliance with the requirements of
7		Section 7-1 of this Act.
8		(Source: P.A. 100-863, eff. 8-14-18.)
9		(205 ILCS 620/Art. IIA heading new)
10		ARTICLE IIA. SPECIAL PURPOSE TRUST COMPANY
11		AUTHORITY AND ORGANIZATION
12		(205 ILCS 620/2A-1 new)
13		Sec. 2A-1. Purpose. The General Assembly finds that
14		corporate fiduciaries perform a vital service in the custody,
15		safekeeping, and management of physical assets, traditional
16		electronic assets, and emerging digital assets for customers;
17		that it is in the public interest that trust companies may be
18		organized for the special purpose of providing fiduciary
19		custodial services and related services to customers; that the
20		operation of special purpose trust companies is impressed with
21		a public interest such that it should be supervised as an
22		activity under this Act; and that such special purpose trust
23		companies should obtain their authority, conduct their
24		operations, and be supervised as corporate fiduciaries as

HB0742 Engrossed - 116 - LRB104 04637 BAB 14664 b
1		provided in this Act.
2		(205 ILCS 620/2A-2 new)
3		Sec. 2A-2. Special purpose trust company. Any corporation
4		that has been or shall be incorporated under the general
5		corporation laws of this State and any limited liability
6		company established under the Limited Liability Company Act
7		for the special purpose of providing fiduciary custodial
8		services or providing other like or related services as
9		specified by rule, consistent with this Article, may be
10		appointed to act as a fiduciary with respect to such services
11		and shall be designated a special purpose trust company.
12		(205 ILCS 620/2A-3 new)
13		Sec. 2A-3. Certificate of authority.
14		(a) It shall be lawful for any person to engage in the
15		activity of a special purpose trust company after the
16		effective date of this amendatory Act of the 104th General
17		Assembly upon filing an application for and procuring from the
18		Secretary a certificate of authority stating that the person
19		has complied with the requirements of this Act and is
20		qualified to engage in the activity of a special purpose trust
21		company.
22		(b) No natural person or natural persons, firm,
23		partnership, or corporation not having been authorized under
24		this Act shall transact in the activity of a special purpose

HB0742 Engrossed - 117 - LRB104 04637 BAB 14664 b
1		trust company. A person who violates this Section is guilty of
2		a Class A misdemeanor and the Attorney General or State's
3		Attorney of the county in which the violation occurs may
4		restrain the violation by a complaint for injunctive relief.
5		(c) Any entity that holds a certificate of authority under
6		Article II of this Act may engage in the activity of a special
7		purpose trust company without applying for or receiving a
8		certificate of authority under this Article IIA.
9		(d) Nothing in this Section shall limit the authority of a
10		depository institution to provide nonfiduciary custodial
11		services consistent with its charter in accordance with
12		applicable law and subject to any limitations and restrictions
13		imposed by its chartering authority.
14		(205 ILCS 620/2A-4 new)
15		Sec. 2A-4. Rulemaking and organization.
16		(a) The Department shall adopt rules for the
17		administration of this Article, including, but not limited to:
18		rules for defining statutory terms; applying for a certificate
19		of authority; review, investigation, and approval of
20		application for certificate of authority; capital
21		requirements; office location and name; collateralizing
22		fiduciary assets; and general corporate powers. The authority
23		of this subsection (a) is in addition to, and in no way limits,
24		the authority of the Secretary under subsection (a) of Section
25		5-1.

HB0742 Engrossed - 118 - LRB104 04637 BAB 14664 b
1		(b) Articles III, V, VI, VII, VIII, and IX of this Act
2		shall apply to a special purpose trust company under this
3		Article as if the special purpose trust company were a trust
4		company authorized under Article II of this Act, subject to
5		any rules adopted by the Department.
6		(205 ILCS 620/4-1)    (from Ch. 17, par. 1554-1)
7		Sec. 4-1. Foreign corporate fiduciary; certificate of
8		authority. After July 13, 1953, no foreign corporation,
9		including banks, savings banks, and savings and loan
10		associations, now or hereafter organized under the laws of any
11		other state or territory, and no national banking association
12		having its principal place of business in any other state or
13		territory or federal savings and loan association or federal
14		savings bank having its principal place of business in any
15		other state or territory, may procure a certificate of
16		authority under Article II of this Act and any certificate of
17		authority heretofore issued hereunder to any such foreign
18		corporation or to any such national banking association shall
19		become null and void on July 13, 1953, except that any such
20		foreign corporation or any such national banking association
21		actually acting as trustee, executor, administrator,
22		administrator to collect, guardian, or in any other like
23		fiduciary capacity in this State on July 13, 1953, may
24		continue to act as such fiduciary in that particular trust or
25		estate until such time as it has completed its duties

HB0742 Engrossed - 119 - LRB104 04637 BAB 14664 b
1		thereunder. Such foreign corporation and such national banking
2		association shall be subject to the provisions in this Article
3		IV, regardless of whether its certificate of authority was
4		obtained before July 13, 1953. The right and eligibility of
5		any foreign corporation, any national banking association
6		having its principal place of business in any other state or
7		territory or any federal savings and loan association or
8		federal savings bank having its principal place of business in
9		any other state or territory hereafter to act as trustee,
10		executor, administrator, administrator to collect, guardian,
11		or in any other like fiduciary capacity in this State shall be
12		governed solely by the provisions of this Act. Provided,
13		however, that the Commissioner shall not be required to
14		conduct an annual examination of such foreign corporation
15		pursuant to Section 5-2 of this Act, but may examine such
16		foreign corporation as the Commissioner deems appropriate.
17		"Principal place of business" of any bank, federal savings and
18		loan association or savings bank, for purposes of this Article
19		IV, means the principal office as designated on the charter by
20		its principal regulator.
21		(Source: P.A. 91-97, eff. 7-9-99.)
22		(205 ILCS 620/4-2)    (from Ch. 17, par. 1554-2)
23		Sec. 4-2. Foreign corporation; eligibility. Any foreign
24		corporation may act in this State as trustee, executor,
25		administrator, administrator to collect, guardian, or in any

HB0742 Engrossed - 120 - LRB104 04637 BAB 14664 b
1		other like fiduciary capacity, whether the appointment is by
2		will, deed, court order or otherwise, without complying with
3		any laws of this State relating to the qualification of
4		corporations organized under the laws of this State to conduct
5		a trust business or laws relating to the qualification of
6		foreign corporations, provided only (1) such foreign
7		corporation is authorized by the laws of the state of its
8		organization or domicile to act as a fiduciary in that state,
9		and (2) a corporation organized under the laws of this State, a
10		national banking association having its principal place of
11		business in this State, and a federal savings and loan
12		association or federal savings bank having its principal place
13		of business in this State and authorized to act as a fiduciary
14		in this State, may, in such other state, act in a similar
15		fiduciary capacity or capacities, as the case may be, upon
16		conditions and qualifications which the Commissioner finds are
17		not unduly restrictive when compared to those imposed by the
18		laws of Illinois. Any foreign corporation eligible to act in a
19		fiduciary capacity in this State pursuant to the provisions of
20		this Act, shall be deemed qualified to accept and execute
21		trusts in this State within the meaning of this Act and the
22		Probate Act of 1975, approved August 7, 1975, as amended. No
23		foreign corporation shall be permitted to act as trustee,
24		executor, administrator, administrator to collect, guardian or
25		in any other like fiduciary capacity in this State except as
26		provided in Article IV of this Act; however, any foreign

HB0742 Engrossed - 121 - LRB104 04637 BAB 14664 b
1		corporation actually acting in any such fiduciary capacity in
2		this State on July 13, 1953, although not eligible to so act
3		pursuant to the provisions of this Article IV, may continue to
4		act as fiduciary in that particular trust or estate until such
5		time as it has completed its duties thereunder.
6		(Source: P.A. 92-685, eff. 7-16-02.)
7		(205 ILCS 620/4-5)    (from Ch. 17, par. 1554-5)
8		Sec. 4-5. Certificate of authority; fees; certificate of
9		reciprocity.
10		(a) Prior to the time any foreign corporation acts in this
11		State as testamentary trustee, trustee appointed by any court,
12		trustee under any written agreement, declaration or instrument
13		of trust, executor, administrator, administrator to collect,
14		guardian or in any other like fiduciary capacity, such foreign
15		corporation shall apply to the Commissioner of Banks and Real
16		Estate for a certificate of authority with reference to the
17		fiduciary capacity or capacities in which such foreign
18		corporation proposes to act in this State, and the
19		Commissioner of Banks and Real Estate shall issue a
20		certificate of authority to such corporation concerning only
21		the fiduciary capacity or such of the fiduciary capacities to
22		which the application pertains and with respect to which he
23		has been furnished satisfactory evidence that such foreign
24		corporation meets the requirements of Section 4-2 of this Act.
25		The certificate of authority shall set forth the fiduciary

HB0742 Engrossed - 122 - LRB104 04637 BAB 14664 b
1		capacity or capacities, as the case may be, for which the
2		certificate is issued, and shall recite and certify that such
3		foreign corporation is eligible to act in this State in such
4		fiduciary capacity or capacities, as the case may be, pursuant
5		to the provisions of this Act. The certificate of authority
6		shall remain in full force and effect until such time as such
7		foreign corporation ceases to be eligible so to act under the
8		provisions of this Act.
9		(b) Each foreign corporation making application for a
10		certificate of authority shall pay reasonable fees to the
11		Commissioner of Banks and Real Estate as determined by the
12		Commissioner for the services of his office.
13		(c) Any foreign corporation holding a certificate of
14		reciprocity which recites and certifies that such foreign
15		corporation is eligible to act in this State in any such
16		fiduciary capacity pursuant to the provisions of Article IV of
17		this Act or any predecessor Act upon the same subject, issued
18		prior to the effective date of this amendatory Act of 1987 may
19		act in this State under such certificate of reciprocity in any
20		such fiduciary capacity without applying for a new certificate
21		of authority. Such certificate of reciprocity shall remain in
22		full force and effect until such time as such foreign
23		corporation ceases to be eligible so to act under the
24		provisions of Article IV of this Act.
25		(d) Any foreign corporation acting in Illinois under a
26		certificate of authority or a certificate of reciprocity shall

HB0742 Engrossed - 123 - LRB104 04637 BAB 14664 b
1		report changes in its name or address to the Commissioner and
2		shall notify the Commissioner when it is no longer serving as a
3		corporate fiduciary in Illinois.
4		(e) The provisions of this Section shall not apply to a
5		foreign corporation establishing or acquiring and maintaining
6		a place of business in this State to conduct business as a
7		fiduciary in accordance with Article IVA of this Act.
8		(Source: P.A. 92-483, eff. 8-23-01.)
9		(205 ILCS 620/4A-15)
10		Sec. 4A-15. Representative offices.
11		(a) A foreign corporation conducting fiduciary activities
12		outside this State, but not conducting fiduciary activities in
13		this State may establish a representative office under the
14		Foreign Bank Representative Office Act. At these offices, the
15		foreign corporation may market and solicit fiduciary services
16		and provide back office and administrative support to the
17		foreign corporation's fiduciary activities, but it may not
18		engage in fiduciary activities.
19		(b) A foreign corporation invested with trust powers or
20		authority to act as a fiduciary pursuant to the laws of its
21		home state but not conducting fiduciary activities must apply
22		for and procure a license under the Foreign Bank
23		Representative Office Act before establishing an office in
24		this State for the purpose of marketing, soliciting, or
25		transacting any service or product, unless such office is

HB0742 Engrossed - 124 - LRB104 04637 BAB 14664 b
1		otherwise established as permitted by and in accordance with
2		this Act, the Illinois Banking Act, the Savings Bank Act, the
3		Foreign Banking Office Act, or any Act specified by rules
4		adopted under this Act.
5		(Source: P.A. 92-483, eff. 8-23-01; 92-811, eff. 8-21-02.)
6		(205 ILCS 620/5-1)    (from Ch. 17, par. 1555-1)
7		Sec. 5-1. Commissioner's powers. The Commissioner of Banks
8		and Real Estate shall have the following powers and authority
9		and is charged with the duties and responsibilities designated
10		in this Act:
11		(a) To promulgate, in accordance with the Illinois
12		Administrative Procedure Act, reasonable rules for the purpose
13		of administering the provisions of this Act, for the purpose
14		of protecting consumers of this State as may be necessary and
15		appropriate, and for the purpose of incorporating by reference
16		rules promulgated by the Federal Deposit Insurance
17		Corporation, the Board of Governors of the Federal Reserve
18		System, the Office of the Comptroller of the Currency, the
19		Office of Thrift Supervision, or their successors that pertain
20		to corporate fiduciaries, including, but not limited to,
21		standards for the operation and conduct of the affairs of
22		corporate fiduciaries;
23		(b) To issue orders for the purpose of administering the
24		provisions of this Act and any rule promulgated in accordance
25		with this Act;

HB0742 Engrossed - 125 - LRB104 04637 BAB 14664 b
1		(c) To appoint hearing officers to conduct hearings held
2		pursuant to any of the powers granted to the Commissioner
3		under this Section for the purpose of administering this Act
4		and any rule promulgated in accordance with this Act;
5		(d) To subpoena witnesses, to compel their attendance, to
6		administer an oath, to examine any person under oath and to
7		require the production of any relevant books, papers, accounts
8		and documents in the course of and pursuant to any
9		investigation being conducted, or any action being taken, by
10		the Commissioner in respect of any matter relating to the
11		duties imposed upon, or the powers vested in, the Commissioner
12		under the provisions of this Act, or any rule or regulation
13		promulgated in accordance with this Act;
14		(e) To conduct hearings;
15		(f) To promulgate the form and content of any applications
16		required under this Act;
17		(g) To impose civil penalties of up to $100,000 against
18		any person or corporate fiduciary for each violation of any
19		provision of this Act, any rule promulgated in accordance with
20		this Act, any order of the Commissioner or any other action
21		which, in the Commissioner's discretion, is a detriment or
22		impediment to accepting or executing trusts; and
23		(h) To address any inquiries to any corporate fiduciary,
24		or the officers thereof, in relation to its doings and
25		conditions, or any other matter connected with its affairs,
26		and it shall be the duty of any corporate fiduciary or person

HB0742 Engrossed - 126 - LRB104 04637 BAB 14664 b
1		so addressed, to promptly reply in writing to such inquiries.
2		The Commissioner may also require reports from any corporate
3		fiduciary at any time he may deem desirable.
4		(Source: P.A. 96-1365, eff. 7-28-10.)
5		Section 90-25. The Consumer Fraud and Deceptive Business
6		Practices Act is amended by adding Section 2HHHH as follows:
7		(815 ILCS 505/2HHHH new)
8		Sec. 2HHHH. Violations of the Digital Assets and Consumer
9		Protection Act. Any person who violates Article 5 of the
10		Digital Assets and Consumer Protection Act commits an unlawful
11		practice within the meaning of this Act.
12		Article 99. Non-acceleration and Effective Date
13		Section 99-95. No acceleration or delay. Where this Act
14		makes changes in a statute that is represented in this Act by
15		text that is not yet or no longer in effect (for example, a
16		Section represented by multiple versions), the use of that
17		text does not accelerate or delay the taking effect of (i) the
18		changes made by this Act or (ii) provisions derived from any
19		other Public Act.
20		Section 99-99. Effective date. This Act takes effect upon
21		becoming law.