Bill Text: IL SB2385 | 2017-2018 | 100th General Assembly | Chaptered


Bill Title: Amends the Abused and Neglected Long Term Care Facility Residents Reporting Act. Makes a technical change in a Section concerning the short title.

Spectrum: Slight Partisan Bill (Democrat 7-3)

Status: (Passed) 2018-08-02 - Public Act . . . . . . . . . 100-0664 [SB2385 Detail]

Download: Illinois-2017-SB2385-Chaptered.html



Public Act 100-0664
SB2385 EnrolledLRB100 17898 MJP 33082 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Banking Act is amended by changing
Section 48.1 as follows:
(205 ILCS 5/48.1) (from Ch. 17, par. 360)
Sec. 48.1. Customer financial records; confidentiality.
(a) For the purpose of this Section, the term "financial
records" means any original, any copy, or any summary of:
(1) a document granting signature authority over a
deposit or account;
(2) a statement, ledger card or other record on any
deposit or account, which shows each transaction in or with
respect to that account;
(3) a check, draft or money order drawn on a bank or
issued and payable by a bank; or
(4) any other item containing information pertaining
to any relationship established in the ordinary course of a
bank's business between a bank and its customer, including
financial statements or other financial information
provided by the customer.
(b) This Section does not prohibit:
(1) The preparation, examination, handling or
maintenance of any financial records by any officer,
employee or agent of a bank having custody of the records,
or the examination of the records by a certified public
accountant engaged by the bank to perform an independent
audit.
(2) The examination of any financial records by, or the
furnishing of financial records by a bank to, any officer,
employee or agent of (i) the Commissioner of Banks and Real
Estate, (ii) after May 31, 1997, a state regulatory
authority authorized to examine a branch of a State bank
located in another state, (iii) the Comptroller of the
Currency, (iv) the Federal Reserve Board, or (v) the
Federal Deposit Insurance Corporation for use solely in the
exercise of his duties as an officer, employee, or agent.
(3) The publication of data furnished from financial
records relating to customers where the data cannot be
identified to any particular customer or account.
(4) The making of reports or returns required under
Chapter 61 of the Internal Revenue Code of 1986.
(5) Furnishing information concerning the dishonor of
any negotiable instrument permitted to be disclosed under
the Uniform Commercial Code.
(6) The exchange in the regular course of business of
(i) credit information between a bank and other banks or
financial institutions or commercial enterprises, directly
or through a consumer reporting agency or (ii) financial
records or information derived from financial records
between a bank and other banks or financial institutions or
commercial enterprises for the purpose of conducting due
diligence pursuant to a purchase or sale involving the bank
or assets or liabilities of the bank.
(7) The furnishing of information to the appropriate
law enforcement authorities where the bank reasonably
believes it has been the victim of a crime.
(8) The furnishing of information under the Revised
Uniform Unclaimed Property Act.
(9) The furnishing of information under the Illinois
Income Tax Act and the Illinois Estate and
Generation-Skipping Transfer Tax Act.
(10) The furnishing of information under the federal
Currency and Foreign Transactions Reporting Act Title 31,
United States Code, Section 1051 et seq.
(11) The furnishing of information under any other
statute that by its terms or by regulations promulgated
thereunder requires the disclosure of financial records
other than by subpoena, summons, warrant, or court order.
(12) The furnishing of information about the existence
of an account of a person to a judgment creditor of that
person who has made a written request for that information.
(13) The exchange in the regular course of business of
information between commonly owned banks in connection
with a transaction authorized under paragraph (23) of
Section 5 and conducted at an affiliate facility.
(14) The furnishing of information in accordance with
the federal Personal Responsibility and Work Opportunity
Reconciliation Act of 1996. Any bank governed by this Act
shall enter into an agreement for data exchanges with a
State agency provided the State agency pays to the bank a
reasonable fee not to exceed its actual cost incurred. A
bank providing information in accordance with this item
shall not be liable to any account holder or other person
for any disclosure of information to a State agency, for
encumbering or surrendering any assets held by the bank in
response to a lien or order to withhold and deliver issued
by a State agency, or for any other action taken pursuant
to this item, including individual or mechanical errors,
provided the action does not constitute gross negligence or
willful misconduct. A bank shall have no obligation to
hold, encumber, or surrender assets until it has been
served with a subpoena, summons, warrant, court or
administrative order, lien, or levy.
(15) The exchange in the regular course of business of
information between a bank and any commonly owned affiliate
of the bank, subject to the provisions of the Financial
Institutions Insurance Sales Law.
(16) The furnishing of information to law enforcement
authorities, the Illinois Department on Aging and its
regional administrative and provider agencies, the
Department of Human Services Office of Inspector General,
or public guardians: (i) upon subpoena by the investigatory
entity or the guardian, or (ii) if there is suspicion by
the bank that a customer who is an elderly person or person
with a disability has been or may become the victim of
financial exploitation. For the purposes of this item (16),
the term: (i) "elderly person" means a person who is 60 or
more years of age, (ii) "disabled person" means a person
who has or reasonably appears to the bank to have a
physical or mental disability that impairs his or her
ability to seek or obtain protection from or prevent
financial exploitation, and (iii) "financial exploitation"
means tortious or illegal use of the assets or resources of
an elderly or disabled person, and includes, without
limitation, misappropriation of the elderly or disabled
person's assets or resources by undue influence, breach of
fiduciary relationship, intimidation, fraud, deception,
extortion, or the use of assets or resources in any manner
contrary to law. A bank or person furnishing information
pursuant to this item (16) shall be entitled to the same
rights and protections as a person furnishing information
under the Adult Protective Services Act and the Illinois
Domestic Violence Act of 1986.
(17) The disclosure of financial records or
information as necessary to effect, administer, or enforce
a transaction requested or authorized by the customer, or
in connection with:
(A) servicing or processing a financial product or
service requested or authorized by the customer;
(B) maintaining or servicing a customer's account
with the bank; or
(C) a proposed or actual securitization or
secondary market sale (including sales of servicing
rights) related to a transaction of a customer.
Nothing in this item (17), however, authorizes the sale
of the financial records or information of a customer
without the consent of the customer.
(18) The disclosure of financial records or
information as necessary to protect against actual or
potential fraud, unauthorized transactions, claims, or
other liability.
(19)(a) The disclosure of financial records or
information related to a private label credit program
between a financial institution and a private label party
in connection with that private label credit program. Such
information is limited to outstanding balance, available
credit, payment and performance and account history,
product references, purchase information, and information
related to the identity of the customer.
(20)(a) The furnishing of financial records of a
customer to the Department to aid the Department's initial
determination or subsequent re-determination of the
customer's eligibility for Medicaid and Medicaid long-term
care benefits for long-term care services, provided that
the bank receives the written consent and authorization of
the customer, which shall:
(1) have the customer's signature notarized;
(2) be signed by at least one witness who certifies
that he or she believes the customer to be of sound
mind and memory;
(3) be tendered to the bank at the earliest
practicable time following its execution,
certification, and notarization;
(4) specifically limit the disclosure of the
customer's financial records to the Department; and
(5) be in substantially the following form:
CUSTOMER CONSENT AND AUTHORIZATION
FOR RELEASE OF FINANCIAL RECORDS
I, ......................................., hereby authorize
(Name of Customer)
.............................................................
(Name of Financial Institution)
.............................................................
(Address of Financial Institution)
to disclose the following financial records:
any and all information concerning my deposit, savings, money
market, certificate of deposit, individual retirement,
retirement plan, 401(k) plan, incentive plan, employee benefit
plan, mutual fund and loan accounts (including, but not limited
to, any indebtedness or obligation for which I am a
co-borrower, co-obligor, guarantor, or surety), and any and all
other accounts in which I have an interest and any other
information regarding me in the possession of the Financial
Institution,
to the Illinois Department of Human Services or the Illinois
Department of Healthcare and Family Services, or both ("the
Department"), for the following purpose(s):
to aid in the initial determination or re-determination by the
State of Illinois of my eligibility for Medicaid long-term care
benefits, pursuant to applicable law.
I understand that this Consent and Authorization may be revoked
by me in writing at any time before my financial records, as
described above, are disclosed, and that this Consent and
Authorization is valid until the Financial Institution
receives my written revocation. This Consent and Authorization
shall constitute valid authorization for the Department
identified above to inspect all such financial records set
forth above, and to request and receive copies of such
financial records from the Financial Institution (subject to
such records search and reproduction reimbursement policies as
the Financial Institution may have in place). An executed copy
of this Consent and Authorization shall be sufficient and as
good as the original and permission is hereby granted to honor
a photostatic or electronic copy of this Consent and
Authorization. Disclosure is strictly limited to the
Department identified above and no other person or entity shall
receive my financial records pursuant to this Consent and
Authorization. By signing this form, I agree to indemnify and
hold the Financial Institution harmless from any and all
claims, demands, and losses, including reasonable attorneys
fees and expenses, arising from or incurred in its reliance on
this Consent and Authorization. As used herein, "Customer"
shall mean "Member" if the Financial Institution is a credit
union.
....................... ......................
(Date) (Signature of Customer)
......................
......................
(Address of Customer)
......................
(Customer's birth date)
(month/day/year)
The undersigned witness certifies that .................,
known to me to be the same person whose name is subscribed as
the customer to the foregoing Consent and Authorization,
appeared before me and the notary public and acknowledged
signing and delivering the instrument as his or her free and
voluntary act for the uses and purposes therein set forth. I
believe him or her to be of sound mind and memory. The
undersigned witness also certifies that the witness is not an
owner, operator, or relative of an owner or operator of a
long-term care facility in which the customer is a patient or
resident.
Dated: ................. ......................
(Signature of Witness)
......................
(Print Name of Witness)
......................
......................
(Address of Witness)
State of Illinois)
) ss.
County of .......)
The undersigned, a notary public in and for the above county
and state, certifies that .........., known to me to be the
same person whose name is subscribed as the customer to the
foregoing Consent and Authorization, appeared before me
together with the witness, .........., in person and
acknowledged signing and delivering the instrument as the free
and voluntary act of the customer for the uses and purposes
therein set forth.
Dated:.......................................................
Notary Public:...............................................
My commission expires:.......................................
(b) In no event shall the bank distribute the
customer's financial records to the long-term care
facility from which the customer seeks initial or
continuing residency or long-term care services.
(c) A bank providing financial records of a customer in
good faith relying on a consent and authorization executed
and tendered in accordance with this paragraph (20) shall
not be liable to the customer or any other person in
relation to the bank's disclosure of the customer's
financial records to the Department. The customer signing
the consent and authorization shall indemnify and hold the
bank harmless that relies in good faith upon the consent
and authorization and incurs a loss because of such
reliance. The bank recovering under this indemnification
provision shall also be entitled to reasonable attorney's
fees and the expenses of recovery.
(d) A bank shall be reimbursed by the customer for all
costs reasonably necessary and directly incurred in
searching for, reproducing, and disclosing a customer's
financial records required or requested to be produced
pursuant to any consent and authorization executed under
this paragraph (20). The requested financial records shall
be delivered to the Department within 10 days after
receiving a properly executed consent and authorization or
at the earliest practicable time thereafter if the
requested records cannot be delivered within 10 days, but
delivery may be delayed until the final reimbursement of
all costs is received by the bank. The bank may honor a
photostatic or electronic copy of a properly executed
consent and authorization.
(e) Nothing in this paragraph (20) shall impair,
abridge, or abrogate the right of a customer to:
(1) directly disclose his or her financial records
to the Department or any other person; or
(2) authorize his or her attorney or duly appointed
agent to request and obtain the customer's financial
records and disclose those financial records to the
Department.
(f) For purposes of this paragraph (20), "Department"
means the Department of Human Services and the Department
of Healthcare and Family Services or any successor
administrative agency of either agency.
(b)(1) For purposes of this paragraph (19) of
subsection (b) of Section 48.1, a "private label credit
program" means a credit program involving a financial
institution and a private label party that is used by a
customer of the financial institution and the private label
party primarily for payment for goods or services sold,
manufactured, or distributed by a private label party.
(2) For purposes of this paragraph (19) of subsection
(b) of Section 48.1, a "private label party" means, with
respect to a private label credit program, any of the
following: a retailer, a merchant, a manufacturer, a trade
group, or any such person's affiliate, subsidiary, member,
agent, or service provider.
(c) Except as otherwise provided by this Act, a bank may
not disclose to any person, except to the customer or his duly
authorized agent, any financial records or financial
information obtained from financial records relating to that
customer of that bank unless:
(1) the customer has authorized disclosure to the
person;
(2) the financial records are disclosed in response to
a lawful subpoena, summons, warrant, citation to discover
assets, or court order which meets the requirements of
subsection (d) of this Section; or
(3) the bank is attempting to collect an obligation
owed to the bank and the bank complies with the provisions
of Section 2I of the Consumer Fraud and Deceptive Business
Practices Act.
(d) A bank shall disclose financial records under paragraph
(2) of subsection (c) of this Section under a lawful subpoena,
summons, warrant, citation to discover assets, or court order
only after the bank mails a copy of the subpoena, summons,
warrant, citation to discover assets, or court order to the
person establishing the relationship with the bank, if living,
and, otherwise his personal representative, if known, at his
last known address by first class mail, postage prepaid, unless
the bank is specifically prohibited from notifying the person
by order of court or by applicable State or federal law. A bank
shall not mail a copy of a subpoena to any person pursuant to
this subsection if the subpoena was issued by a grand jury
under the Statewide Grand Jury Act.
(e) Any officer or employee of a bank who knowingly and
willfully furnishes financial records in violation of this
Section is guilty of a business offense and, upon conviction,
shall be fined not more than $1,000.
(f) Any person who knowingly and willfully induces or
attempts to induce any officer or employee of a bank to
disclose financial records in violation of this Section is
guilty of a business offense and, upon conviction, shall be
fined not more than $1,000.
(g) A bank shall be reimbursed for costs that are
reasonably necessary and that have been directly incurred in
searching for, reproducing, or transporting books, papers,
records, or other data of a customer required or requested to
be produced pursuant to a lawful subpoena, summons, warrant,
citation to discover assets, or court order. The Commissioner
shall determine the rates and conditions under which payment
may be made.
(Source: P.A. 99-143, eff. 7-27-15; 100-22, eff. 1-1-18.)
Section 10. The Savings Bank Act is amended by changing
Section 4013 as follows:
(205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
Sec. 4013. Access to books and records; communication with
members and shareholders.
(a) Every member or shareholder shall have the right to
inspect books and records of the savings bank that pertain to
his accounts. Otherwise, the right of inspection and
examination of the books and records shall be limited as
provided in this Act, and no other person shall have access to
the books and records nor shall be entitled to a list of the
members or shareholders.
(b) For the purpose of this Section, the term "financial
records" means any original, any copy, or any summary of (1) a
document granting signature authority over a deposit or
account; (2) a statement, ledger card, or other record on any
deposit or account that shows each transaction in or with
respect to that account; (3) a check, draft, or money order
drawn on a savings bank or issued and payable by a savings
bank; or (4) any other item containing information pertaining
to any relationship established in the ordinary course of a
savings bank's business between a savings bank and its
customer, including financial statements or other financial
information provided by the member or shareholder.
(c) This Section does not prohibit:
(1) The preparation, examination, handling, or
maintenance of any financial records by any officer,
employee, or agent of a savings bank having custody of
records or examination of records by a certified public
accountant engaged by the savings bank to perform an
independent audit.
(2) The examination of any financial records by, or the
furnishing of financial records by a savings bank to, any
officer, employee, or agent of the Commissioner of Banks
and Real Estate or the federal depository institution
regulator for use solely in the exercise of his duties as
an officer, employee, or agent.
(3) The publication of data furnished from financial
records relating to members or holders of capital where the
data cannot be identified to any particular member,
shareholder, or account.
(4) The making of reports or returns required under
Chapter 61 of the Internal Revenue Code of 1986.
(5) Furnishing information concerning the dishonor of
any negotiable instrument permitted to be disclosed under
the Uniform Commercial Code.
(6) The exchange in the regular course of business of
(i) credit information between a savings bank and other
savings banks or financial institutions or commercial
enterprises, directly or through a consumer reporting
agency or (ii) financial records or information derived
from financial records between a savings bank and other
savings banks or financial institutions or commercial
enterprises for the purpose of conducting due diligence
pursuant to a purchase or sale involving the savings bank
or assets or liabilities of the savings bank.
(7) The furnishing of information to the appropriate
law enforcement authorities where the savings bank
reasonably believes it has been the victim of a crime.
(8) The furnishing of information pursuant to the
Revised Uniform Unclaimed Property Act.
(9) The furnishing of information pursuant to the
Illinois Income Tax Act and the Illinois Estate and
Generation-Skipping Transfer Tax Act.
(10) The furnishing of information pursuant to the
federal Currency and Foreign Transactions Reporting Act,
(Title 31, United States Code, Section 1051 et seq.).
(11) The furnishing of information pursuant to any
other statute which by its terms or by regulations
promulgated thereunder requires the disclosure of
financial records other than by subpoena, summons,
warrant, or court order.
(12) The furnishing of information in accordance with
the federal Personal Responsibility and Work Opportunity
Reconciliation Act of 1996. Any savings bank governed by
this Act shall enter into an agreement for data exchanges
with a State agency provided the State agency pays to the
savings bank a reasonable fee not to exceed its actual cost
incurred. A savings bank providing information in
accordance with this item shall not be liable to any
account holder or other person for any disclosure of
information to a State agency, for encumbering or
surrendering any assets held by the savings bank in
response to a lien or order to withhold and deliver issued
by a State agency, or for any other action taken pursuant
to this item, including individual or mechanical errors,
provided the action does not constitute gross negligence or
willful misconduct. A savings bank shall have no obligation
to hold, encumber, or surrender assets until it has been
served with a subpoena, summons, warrant, court or
administrative order, lien, or levy.
(13) The furnishing of information to law enforcement
authorities, the Illinois Department on Aging and its
regional administrative and provider agencies, the
Department of Human Services Office of Inspector General,
or public guardians: (i) upon subpoena by the investigatory
entity or the guardian, or (ii) if there is suspicion by
the savings bank that a customer who is an elderly person
or person with a disability has been or may become the
victim of financial exploitation. For the purposes of this
item (13), the term: (i) "elderly person" means a person
who is 60 or more years of age, (ii) "person with a
disability" means a person who has or reasonably appears to
the savings bank to have a physical or mental disability
that impairs his or her ability to seek or obtain
protection from or prevent financial exploitation, and
(iii) "financial exploitation" means tortious or illegal
use of the assets or resources of an elderly person or
person with a disability, and includes, without
limitation, misappropriation of the assets or resources of
the elderly person or person with a disability by undue
influence, breach of fiduciary relationship, intimidation,
fraud, deception, extortion, or the use of assets or
resources in any manner contrary to law. A savings bank or
person furnishing information pursuant to this item (13)
shall be entitled to the same rights and protections as a
person furnishing information under the Adult Protective
Services Act and the Illinois Domestic Violence Act of
1986.
(14) The disclosure of financial records or
information as necessary to effect, administer, or enforce
a transaction requested or authorized by the member or
holder of capital, or in connection with:
(A) servicing or processing a financial product or
service requested or authorized by the member or holder
of capital;
(B) maintaining or servicing an account of a member
or holder of capital with the savings bank; or
(C) a proposed or actual securitization or
secondary market sale (including sales of servicing
rights) related to a transaction of a member or holder
of capital.
Nothing in this item (14), however, authorizes the sale
of the financial records or information of a member or
holder of capital without the consent of the member or
holder of capital.
(15) The exchange in the regular course of business of
information between a savings bank and any commonly owned
affiliate of the savings bank, subject to the provisions of
the Financial Institutions Insurance Sales Law.
(16) The disclosure of financial records or
information as necessary to protect against or prevent
actual or potential fraud, unauthorized transactions,
claims, or other liability.
(17)(a) The disclosure of financial records or
information related to a private label credit program
between a financial institution and a private label party
in connection with that private label credit program. Such
information is limited to outstanding balance, available
credit, payment and performance and account history,
product references, purchase information, and information
related to the identity of the customer.
(b)(1) For purposes of this paragraph (17) of
subsection (c) of Section 4013, a "private label credit
program" means a credit program involving a financial
institution and a private label party that is used by a
customer of the financial institution and the private label
party primarily for payment for goods or services sold,
manufactured, or distributed by a private label party.
(2) For purposes of this paragraph (17) of subsection
(c) of Section 4013, a "private label party" means, with
respect to a private label credit program, any of the
following: a retailer, a merchant, a manufacturer, a trade
group, or any such person's affiliate, subsidiary, member,
agent, or service provider.
(18)(a) The furnishing of financial records of a
customer to the Department to aid the Department's initial
determination or subsequent re-determination of the
customer's eligibility for Medicaid and Medicaid long-term
care benefits for long-term care services, provided that
the savings bank receives the written consent and
authorization of the customer, which shall:
(1) have the customer's signature notarized;
(2) be signed by at least one witness who certifies
that he or she believes the customer to be of sound
mind and memory;
(3) be tendered to the savings bank at the earliest
practicable time following its execution,
certification, and notarization;
(4) specifically limit the disclosure of the
customer's financial records to the Department; and
(5) be in substantially the following form:
CUSTOMER CONSENT AND AUTHORIZATION
FOR RELEASE OF FINANCIAL RECORDS
I, ......................................., hereby authorize
(Name of Customer)
.............................................................
(Name of Financial Institution)
.............................................................
(Address of Financial Institution)
to disclose the following financial records:
any and all information concerning my deposit, savings, money
market, certificate of deposit, individual retirement,
retirement plan, 401(k) plan, incentive plan, employee benefit
plan, mutual fund and loan accounts (including, but not limited
to, any indebtedness or obligation for which I am a
co-borrower, co-obligor, guarantor, or surety), and any and all
other accounts in which I have an interest and any other
information regarding me in the possession of the Financial
Institution,
to the Illinois Department of Human Services or the Illinois
Department of Healthcare and Family Services, or both ("the
Department"), for the following purpose(s):
to aid in the initial determination or re-determination by the
State of Illinois of my eligibility for Medicaid long-term care
benefits, pursuant to applicable law.
I understand that this Consent and Authorization may be revoked
by me in writing at any time before my financial records, as
described above, are disclosed, and that this Consent and
Authorization is valid until the Financial Institution
receives my written revocation. This Consent and Authorization
shall constitute valid authorization for the Department
identified above to inspect all such financial records set
forth above, and to request and receive copies of such
financial records from the Financial Institution (subject to
such records search and reproduction reimbursement policies as
the Financial Institution may have in place). An executed copy
of this Consent and Authorization shall be sufficient and as
good as the original and permission is hereby granted to honor
a photostatic or electronic copy of this Consent and
Authorization. Disclosure is strictly limited to the
Department identified above and no other person or entity shall
receive my financial records pursuant to this Consent and
Authorization. By signing this form, I agree to indemnify and
hold the Financial Institution harmless from any and all
claims, demands, and losses, including reasonable attorneys
fees and expenses, arising from or incurred in its reliance on
this Consent and Authorization. As used herein, "Customer"
shall mean "Member" if the Financial Institution is a credit
union.
....................... ......................
(Date) (Signature of Customer)
......................
......................
(Address of Customer)
......................
(Customer's birth date)
(month/day/year)
The undersigned witness certifies that .................,
known to me to be the same person whose name is subscribed as
the customer to the foregoing Consent and Authorization,
appeared before me and the notary public and acknowledged
signing and delivering the instrument as his or her free and
voluntary act for the uses and purposes therein set forth. I
believe him or her to be of sound mind and memory. The
undersigned witness also certifies that the witness is not an
owner, operator, or relative of an owner or operator of a
long-term care facility in which the customer is a patient or
resident.
Dated: ................. ......................
(Signature of Witness)
......................
(Print Name of Witness)
......................
......................
(Address of Witness)
State of Illinois)
) ss.
County of .......)
The undersigned, a notary public in and for the above county
and state, certifies that .........., known to me to be the
same person whose name is subscribed as the customer to the
foregoing Consent and Authorization, appeared before me
together with the witness, .........., in person and
acknowledged signing and delivering the instrument as the free
and voluntary act of the customer for the uses and purposes
therein set forth.
Dated:.......................................................
Notary Public:...............................................
My commission expires:.......................................
(b) In no event shall the savings bank distribute the
customer's financial records to the long-term care
facility from which the customer seeks initial or
continuing residency or long-term care services.
(c) A savings bank providing financial records of a
customer in good faith relying on a consent and
authorization executed and tendered in accordance with
this paragraph (18) shall not be liable to the customer or
any other person in relation to the savings bank's
disclosure of the customer's financial records to the
Department. The customer signing the consent and
authorization shall indemnify and hold the savings bank
harmless that relies in good faith upon the consent and
authorization and incurs a loss because of such reliance.
The savings bank recovering under this indemnification
provision shall also be entitled to reasonable attorney's
fees and the expenses of recovery.
(d) A savings bank shall be reimbursed by the customer
for all costs reasonably necessary and directly incurred in
searching for, reproducing, and disclosing a customer's
financial records required or requested to be produced
pursuant to any consent and authorization executed under
this paragraph (18). The requested financial records shall
be delivered to the Department within 10 days after
receiving a properly executed consent and authorization or
at the earliest practicable time thereafter if the
requested records cannot be delivered within 10 days, but
delivery may be delayed until the final reimbursement of
all costs is received by the savings bank. The savings bank
may honor a photostatic or electronic copy of a properly
executed consent and authorization.
(e) Nothing in this paragraph (18) shall impair,
abridge, or abrogate the right of a customer to:
(1) directly disclose his or her financial records
to the Department or any other person; or
(2) authorize his or her attorney or duly appointed
agent to request and obtain the customer's financial
records and disclose those financial records to the
Department.
(f) For purposes of this paragraph (18), "Department"
means the Department of Human Services and the Department
of Healthcare and Family Services or any successor
administrative agency of either agency.
(d) A savings bank may not disclose to any person, except
to the member or holder of capital or his duly authorized
agent, any financial records relating to that member or
shareholder of the savings bank unless:
(1) the member or shareholder has authorized
disclosure to the person; or
(2) the financial records are disclosed in response to
a lawful subpoena, summons, warrant, citation to discover
assets, or court order that meets the requirements of
subsection (e) of this Section.
(e) A savings bank shall disclose financial records under
subsection (d) of this Section pursuant to a lawful subpoena,
summons, warrant, citation to discover assets, or court order
only after the savings bank mails a copy of the subpoena,
summons, warrant, citation to discover assets, or court order
to the person establishing the relationship with the savings
bank, if living, and otherwise, his personal representative, if
known, at his last known address by first class mail, postage
prepaid, unless the savings bank is specifically prohibited
from notifying the person by order of court.
(f) Any officer or employee of a savings bank who knowingly
and willfully furnishes financial records in violation of this
Section is guilty of a business offense and, upon conviction,
shall be fined not more than $1,000.
(g) Any person who knowingly and willfully induces or
attempts to induce any officer or employee of a savings bank to
disclose financial records in violation of this Section is
guilty of a business offense and, upon conviction, shall be
fined not more than $1,000.
(h) If any member or shareholder desires to communicate
with the other members or shareholders of the savings bank with
reference to any question pending or to be presented at an
annual or special meeting, the savings bank shall give that
person, upon request, a statement of the approximate number of
members or shareholders entitled to vote at the meeting and an
estimate of the cost of preparing and mailing the
communication. The requesting member shall submit the
communication to the Commissioner who, upon finding it to be
appropriate and truthful, shall direct that it be prepared and
mailed to the members upon the requesting member's or
shareholder's payment or adequate provision for payment of the
expenses of preparation and mailing.
(i) A savings bank shall be reimbursed for costs that are
necessary and that have been directly incurred in searching
for, reproducing, or transporting books, papers, records, or
other data of a customer required to be reproduced pursuant to
a lawful subpoena, warrant, citation to discover assets, or
court order.
(j) Notwithstanding the provisions of this Section, a
savings bank may sell or otherwise make use of lists of
customers' names and addresses. All other information
regarding a customer's account is subject to the disclosure
provisions of this Section. At the request of any customer,
that customer's name and address shall be deleted from any list
that is to be sold or used in any other manner beyond
identification of the customer's accounts.
(Source: P.A. 99-143, eff. 7-27-15; 100-22, eff. 1-1-18;
100-201, eff. 8-18-17.)
Section 15. The Illinois Credit Union Act is amended by
changing Section 10 as follows:
(205 ILCS 305/10) (from Ch. 17, par. 4411)
Sec. 10. Credit union records; member financial records.
(1) A credit union shall establish and maintain books,
records, accounting systems and procedures which accurately
reflect its operations and which enable the Department to
readily ascertain the true financial condition of the credit
union and whether it is complying with this Act.
(2) A photostatic or photographic reproduction of any
credit union records shall be admissible as evidence of
transactions with the credit union.
(3)(a) For the purpose of this Section, the term "financial
records" means any original, any copy, or any summary of (1) a
document granting signature authority over an account, (2) a
statement, ledger card or other record on any account which
shows each transaction in or with respect to that account, (3)
a check, draft or money order drawn on a financial institution
or other entity or issued and payable by or through a financial
institution or other entity, or (4) any other item containing
information pertaining to any relationship established in the
ordinary course of business between a credit union and its
member, including financial statements or other financial
information provided by the member.
(b) This Section does not prohibit:
(1) The preparation, examination, handling or
maintenance of any financial records by any officer,
employee or agent of a credit union having custody of such
records, or the examination of such records by a certified
public accountant engaged by the credit union to perform an
independent audit.
(2) The examination of any financial records by or the
furnishing of financial records by a credit union to any
officer, employee or agent of the Department, the National
Credit Union Administration, Federal Reserve board or any
insurer of share accounts for use solely in the exercise of
his duties as an officer, employee or agent.
(3) The publication of data furnished from financial
records relating to members where the data cannot be
identified to any particular customer of account.
(4) The making of reports or returns required under
Chapter 61 of the Internal Revenue Code of 1954.
(5) Furnishing information concerning the dishonor of
any negotiable instrument permitted to be disclosed under
the Uniform Commercial Code.
(6) The exchange in the regular course of business of
(i) credit information between a credit union and other
credit unions or financial institutions or commercial
enterprises, directly or through a consumer reporting
agency or (ii) financial records or information derived
from financial records between a credit union and other
credit unions or financial institutions or commercial
enterprises for the purpose of conducting due diligence
pursuant to a merger or a purchase or sale of assets or
liabilities of the credit union.
(7) The furnishing of information to the appropriate
law enforcement authorities where the credit union
reasonably believes it has been the victim of a crime.
(8) The furnishing of information pursuant to the
Revised Uniform Unclaimed Property Act.
(9) The furnishing of information pursuant to the
Illinois Income Tax Act and the Illinois Estate and
Generation-Skipping Transfer Tax Act.
(10) The furnishing of information pursuant to the
federal "Currency and Foreign Transactions Reporting Act",
Title 31, United States Code, Section 1051 et sequentia.
(11) The furnishing of information pursuant to any
other statute which by its terms or by regulations
promulgated thereunder requires the disclosure of
financial records other than by subpoena, summons, warrant
or court order.
(12) The furnishing of information in accordance with
the federal Personal Responsibility and Work Opportunity
Reconciliation Act of 1996. Any credit union governed by
this Act shall enter into an agreement for data exchanges
with a State agency provided the State agency pays to the
credit union a reasonable fee not to exceed its actual cost
incurred. A credit union providing information in
accordance with this item shall not be liable to any
account holder or other person for any disclosure of
information to a State agency, for encumbering or
surrendering any assets held by the credit union in
response to a lien or order to withhold and deliver issued
by a State agency, or for any other action taken pursuant
to this item, including individual or mechanical errors,
provided the action does not constitute gross negligence or
willful misconduct. A credit union shall have no obligation
to hold, encumber, or surrender assets until it has been
served with a subpoena, summons, warrant, court or
administrative order, lien, or levy.
(13) The furnishing of information to law enforcement
authorities, the Illinois Department on Aging and its
regional administrative and provider agencies, the
Department of Human Services Office of Inspector General,
or public guardians: (i) upon subpoena by the investigatory
entity or the guardian, or (ii) if there is suspicion by
the credit union that a member who is an elderly person or
person with a disability has been or may become the victim
of financial exploitation. For the purposes of this item
(13), the term: (i) "elderly person" means a person who is
60 or more years of age, (ii) "person with a disability"
means a person who has or reasonably appears to the credit
union to have a physical or mental disability that impairs
his or her ability to seek or obtain protection from or
prevent financial exploitation, and (iii) "financial
exploitation" means tortious or illegal use of the assets
or resources of an elderly person or person with a
disability, and includes, without limitation,
misappropriation of the elderly or disabled person's
assets or resources by undue influence, breach of fiduciary
relationship, intimidation, fraud, deception, extortion,
or the use of assets or resources in any manner contrary to
law. A credit union or person furnishing information
pursuant to this item (13) shall be entitled to the same
rights and protections as a person furnishing information
under the Adult Protective Services Act and the Illinois
Domestic Violence Act of 1986.
(14) The disclosure of financial records or
information as necessary to effect, administer, or enforce
a transaction requested or authorized by the member, or in
connection with:
(A) servicing or processing a financial product or
service requested or authorized by the member;
(B) maintaining or servicing a member's account
with the credit union; or
(C) a proposed or actual securitization or
secondary market sale (including sales of servicing
rights) related to a transaction of a member.
Nothing in this item (14), however, authorizes the sale
of the financial records or information of a member without
the consent of the member.
(15) The disclosure of financial records or
information as necessary to protect against or prevent
actual or potential fraud, unauthorized transactions,
claims, or other liability.
(16)(a) The disclosure of financial records or
information related to a private label credit program
between a financial institution and a private label party
in connection with that private label credit program. Such
information is limited to outstanding balance, available
credit, payment and performance and account history,
product references, purchase information, and information
related to the identity of the customer.
(b)(1) For purposes of this paragraph (16) of
subsection (b) of Section 10, a "private label credit
program" means a credit program involving a financial
institution and a private label party that is used by a
customer of the financial institution and the private label
party primarily for payment for goods or services sold,
manufactured, or distributed by a private label party.
(2) For purposes of this paragraph (16) of subsection
(b) of Section 10, a "private label party" means, with
respect to a private label credit program, any of the
following: a retailer, a merchant, a manufacturer, a trade
group, or any such person's affiliate, subsidiary, member,
agent, or service provider.
(17)(a) The furnishing of financial records of a member
to the Department to aid the Department's initial
determination or subsequent re-determination of the
member's eligibility for Medicaid and Medicaid long-term
care benefits for long-term care services, provided that
the credit union receives the written consent and
authorization of the member, which shall:
(1) have the member's signature notarized;
(2) be signed by at least one witness who certifies
that he or she believes the member to be of sound mind
and memory;
(3) be tendered to the credit union at the earliest
practicable time following its execution,
certification, and notarization;
(4) specifically limit the disclosure of the
member's financial records to the Department; and
(5) be in substantially the following form:
CUSTOMER CONSENT AND AUTHORIZATION
FOR RELEASE OF FINANCIAL RECORDS
I, ......................................., hereby authorize
(Name of Customer)
.............................................................
(Name of Financial Institution)
.............................................................
(Address of Financial Institution)
to disclose the following financial records:
any and all information concerning my deposit, savings, money
market, certificate of deposit, individual retirement,
retirement plan, 401(k) plan, incentive plan, employee benefit
plan, mutual fund and loan accounts (including, but not limited
to, any indebtedness or obligation for which I am a
co-borrower, co-obligor, guarantor, or surety), and any and all
other accounts in which I have an interest and any other
information regarding me in the possession of the Financial
Institution,
to the Illinois Department of Human Services or the Illinois
Department of Healthcare and Family Services, or both ("the
Department"), for the following purpose(s):
to aid in the initial determination or re-determination by the
State of Illinois of my eligibility for Medicaid long-term care
benefits, pursuant to applicable law.
I understand that this Consent and Authorization may be revoked
by me in writing at any time before my financial records, as
described above, are disclosed, and that this Consent and
Authorization is valid until the Financial Institution
receives my written revocation. This Consent and Authorization
shall constitute valid authorization for the Department
identified above to inspect all such financial records set
forth above, and to request and receive copies of such
financial records from the Financial Institution (subject to
such records search and reproduction reimbursement policies as
the Financial Institution may have in place). An executed copy
of this Consent and Authorization shall be sufficient and as
good as the original and permission is hereby granted to honor
a photostatic or electronic copy of this Consent and
Authorization. Disclosure is strictly limited to the
Department identified above and no other person or entity shall
receive my financial records pursuant to this Consent and
Authorization. By signing this form, I agree to indemnify and
hold the Financial Institution harmless from any and all
claims, demands, and losses, including reasonable attorneys
fees and expenses, arising from or incurred in its reliance on
this Consent and Authorization. As used herein, "Customer"
shall mean "Member" if the Financial Institution is a credit
union.
....................... ......................
(Date) (Signature of Customer)
......................
......................
(Address of Customer)
......................
(Customer's birth date)
(month/day/year)
The undersigned witness certifies that .................,
known to me to be the same person whose name is subscribed as
the customer to the foregoing Consent and Authorization,
appeared before me and the notary public and acknowledged
signing and delivering the instrument as his or her free and
voluntary act for the uses and purposes therein set forth. I
believe him or her to be of sound mind and memory. The
undersigned witness also certifies that the witness is not an
owner, operator, or relative of an owner or operator of a
long-term care facility in which the customer is a patient or
resident.
Dated: ................. ......................
(Signature of Witness)
......................
(Print Name of Witness)
......................
......................
(Address of Witness)
State of Illinois)
) ss.
County of .......)
The undersigned, a notary public in and for the above county
and state, certifies that .........., known to me to be the
same person whose name is subscribed as the customer to the
foregoing Consent and Authorization, appeared before me
together with the witness, .........., in person and
acknowledged signing and delivering the instrument as the free
and voluntary act of the customer for the uses and purposes
therein set forth.
Dated:.......................................................
Notary Public:...............................................
My commission expires:.......................................
(b) In no event shall the credit union distribute the
member's financial records to the long-term care facility
from which the member seeks initial or continuing residency
or long-term care services.
(c) A credit union providing financial records of a
member in good faith relying on a consent and authorization
executed and tendered in accordance with this subparagraph
(17) shall not be liable to the member or any other person
in relation to the credit union's disclosure of the
member's financial records to the Department. The member
signing the consent and authorization shall indemnify and
hold the credit union harmless that relies in good faith
upon the consent and authorization and incurs a loss
because of such reliance. The credit union recovering under
this indemnification provision shall also be entitled to
reasonable attorney's fees and the expenses of recovery.
(d) A credit union shall be reimbursed by the member
for all costs reasonably necessary and directly incurred in
searching for, reproducing, and disclosing a member's
financial records required or requested to be produced
pursuant to any consent and authorization executed under
this subparagraph (17). The requested financial records
shall be delivered to the Department within 10 days after
receiving a properly executed consent and authorization or
at the earliest practicable time thereafter if the
requested records cannot be delivered within 10 days, but
delivery may be delayed until the final reimbursement of
all costs is received by the credit union. The credit union
may honor a photostatic or electronic copy of a properly
executed consent and authorization.
(e) Nothing in this subparagraph (17) shall impair,
abridge, or abrogate the right of a member to:
(1) directly disclose his or her financial records
to the Department or any other person; or
(2) authorize his or her attorney or duly appointed
agent to request and obtain the member's financial
records and disclose those financial records to the
Department.
(f) For purposes of this subparagraph (17),
"Department" means the Department of Human Services and the
Department of Healthcare and Family Services or any
successor administrative agency of either agency.
(c) Except as otherwise provided by this Act, a credit
union may not disclose to any person, except to the member or
his duly authorized agent, any financial records relating to
that member of the credit union unless:
(1) the member has authorized disclosure to the person;
(2) the financial records are disclosed in response to
a lawful subpoena, summons, warrant, citation to discover
assets, or court order that meets the requirements of
subparagraph (d) of this Section; or
(3) the credit union is attempting to collect an
obligation owed to the credit union and the credit union
complies with the provisions of Section 2I of the Consumer
Fraud and Deceptive Business Practices Act.
(d) A credit union shall disclose financial records under
subparagraph (c)(2) of this Section pursuant to a lawful
subpoena, summons, warrant, citation to discover assets, or
court order only after the credit union mails a copy of the
subpoena, summons, warrant, citation to discover assets, or
court order to the person establishing the relationship with
the credit union, if living, and otherwise his personal
representative, if known, at his last known address by first
class mail, postage prepaid unless the credit union is
specifically prohibited from notifying the person by order of
court or by applicable State or federal law. In the case of a
grand jury subpoena, a credit union shall not mail a copy of a
subpoena to any person pursuant to this subsection if the
subpoena was issued by a grand jury under the Statewide Grand
Jury Act or notifying the person would constitute a violation
of the federal Right to Financial Privacy Act of 1978.
(e)(1) Any officer or employee of a credit union who
knowingly and wilfully furnishes financial records in
violation of this Section is guilty of a business offense and
upon conviction thereof shall be fined not more than $1,000.
(2) Any person who knowingly and wilfully induces or
attempts to induce any officer or employee of a credit union to
disclose financial records in violation of this Section is
guilty of a business offense and upon conviction thereof shall
be fined not more than $1,000.
(f) A credit union shall be reimbursed for costs which are
reasonably necessary and which have been directly incurred in
searching for, reproducing or transporting books, papers,
records or other data of a member required or requested to be
produced pursuant to a lawful subpoena, summons, warrant,
citation to discover assets, or court order. The Secretary and
the Director may determine, by rule, the rates and conditions
under which payment shall be made. Delivery of requested
documents may be delayed until final reimbursement of all costs
is received.
(Source: P.A. 99-143, eff. 7-27-15; 100-22, eff. 1-1-18.)
Section 99. Effective date. This Act takes effect January
1, 2019.
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