Bill Text: IL SB2832 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the Illinois Public Aid Code. Provides that whenever the State determines that asset verification is necessary for a determination of eligibility on the basis of being aged, blind, or disabled, the Department of Healthcare and Family Services shall require the applicant for or recipient of medical assistance and any other person whose resources are required by law to be disclosed to determine the eligibility of the applicant or recipient for such assistance to provide authorization for the State to obtain any financial records held by any financial institution with respect to the applicant's or recipient's or such other person's resources, as applicable, from any financial institution holding such records. Provides that the records shall be produced at no cost to the applicant, recipient, or such other person. Defines "financial institution" and "financial records". Amends the Illinois Banking Act, the Illinois Savings and Loan Act of 1985, the Savings Bank Act, and the Illinois Credit Union Act. Permits the financial institutions subject to those Acts to furnish information in accordance with the federal requirement of asset verification as set forth in the Social Security Act and pursuant to authorization by a medical assistance applicant or recipient or by any other person whose resources are required by law to be disclosed to determine the eligibility of the applicant or recipient for such assistance.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2015-01-13 - Session Sine Die [SB2832 Detail]

Download: Illinois-2013-SB2832-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 SB2832 Introduced 1/30/2014, by Sen. Jacqueline Y. Collins SYNOPSIS AS INTRODUCED:
205 ILCS 5/48.1 from Ch. 17, par. 360
205 ILCS 105/3-8 from Ch. 17, par. 3303-8
205 ILCS 205/4013 from Ch. 17, par. 7304-13
205 ILCS 305/10 from Ch. 17, par. 4411
305 ILCS 5/11-5.1
Amends the Illinois Public Aid Code. Provides that whenever the State determines that asset verification is necessary for a determination of eligibility on the basis of being aged, blind, or disabled, the Department of Healthcare and Family Services shall require the applicant for or recipient of medical assistance and any other person whose resources are required by law to be disclosed to determine the eligibility of the applicant or recipient for such assistance to provide authorization for the State to obtain any financial records held by any financial institution with respect to the applicant's or recipient's or such other person's resources, as applicable, from any financial institution holding such records. Provides that the records shall be produced at no cost to the applicant, recipient, or such other person. Defines "financial institution" and "financial records". Amends the Illinois Banking Act, the Illinois Savings and Loan Act of 1985, the Savings Bank Act, and the Illinois Credit Union Act. Permits the financial institutions subject to those Acts to furnish information in accordance with the federal requirement of asset verification as set forth in the Social Security Act and pursuant to authorization by a medical assistance applicant or recipient or by any other person whose resources are required by law to be disclosed to determine the eligibility of the applicant or recipient for such assistance.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
SB2832 LRB098 15924 KTG 50971 b
AN ACT concerning public aid.
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
(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

SB2832 - 2 - LRB098 15924 KTG 50971 b
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

SB2832 - 3 - LRB098 15924 KTG 50971 b
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 Uniform
Disposition of 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

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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

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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 or disabled
person 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

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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.
(b)(l) 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

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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.l, 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.
(20) The furnishing of information in accordance with
the federal requirement of asset verification through
access to information held by financial institutions as set
forth in Section 1940 of the Social Security Act (42 U.S.C.
1396w) and pursuant to authorization by an applicant or
recipient of medical assistance under the Illinois Public
Aid Code or by any other person whose resources are
required by law to be disclosed to determine the
eligibility of the applicant or recipient for such
assistance. No bank shall charge a fee to the applicant or
recipient of medical assistance or to the State agency for
the furnishing of information under this paragraph (20). A
bank acting in accordance with this paragraph (20) shall
not be liable to any account holder or other person for any
disclosure of information to a State agency provided the
action does not constitute gross negligence or willful

SB2832 - 8 - LRB098 15924 KTG 50971 b
misconduct.
(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

SB2832 - 9 - LRB098 15924 KTG 50971 b
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. 98-49, eff. 7-1-13.)
Section 10. The Illinois Savings and Loan Act of 1985 is
amended by changing Section 3-8 as follows:
(205 ILCS 105/3-8) (from Ch. 17, par. 3303-8)

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Sec. 3-8. Access to books and records; communication with
members.
(a) Every member or holder of capital shall have the right
to inspect the books and records of the association that
pertain to his account. 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 or shall be entitled to a list of the
members.
(b) For the purpose of this Section, the term "financial
records" means any original, any copy, or any summary of (i) a
document granting signature authority over a deposit or
account; (ii) a statement, ledger card, or other record on any
deposit or account that shows each transaction in or with
respect to that account; (iii) a check, draft, or money order
drawn on an association or issued and payable by an
association; or (iv) any other item containing information
pertaining to any relationship established in the ordinary
course of an association's business between an association and
its customer, including financial statements or other
financial information provided by the member or holder of
capital.
(c) This Section does not prohibit:
(1) The preparation, examination, handling, or
maintenance of any financial records by any officer,
employee, or agent of an association having custody of

SB2832 - 11 - LRB098 15924 KTG 50971 b
those records or the examination of those records by a
certified public accountant engaged by the association to
perform an independent audit.
(2) The examination of any financial records by, or the
furnishing of financial records by an association to, any
officer, employee, or agent of the Commissioner of Banks
and Real Estate or 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, holder
of capital, 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 an association and other
associations or financial institutions or commercial
enterprises, directly or through a consumer reporting
agency or (ii) financial records or information derived
from financial records between an association and other
associations or financial institutions or commercial
enterprises for the purpose of conducting due diligence

SB2832 - 12 - LRB098 15924 KTG 50971 b
pursuant to a purchase or sale involving the association or
assets or liabilities of the association.
(7) The furnishing of information to the appropriate
law enforcement authorities where the association
reasonably believes it has been the victim of a crime.
(8) The furnishing of information pursuant to the
Uniform Disposition of 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 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 exchange of information between an
association and an affiliate of the association; as used in
this item, "affiliate" includes any company, partnership,
or organization that controls, is controlled by, or is
under common control with an association.
(13) The furnishing of information in accordance with
the federal Personal Responsibility and Work Opportunity
Reconciliation Act of 1996. Any association governed by

SB2832 - 13 - LRB098 15924 KTG 50971 b
this Act shall enter into an agreement for data exchanges
with a State agency provided the State agency pays to the
association a reasonable fee not to exceed its actual cost
incurred. An association 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 association 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. An association 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.
(14) 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 association that a customer who is an elderly or
disabled person has been or may become the victim of
financial exploitation. For the purposes of this item (14),
the term: (i) "elderly person" means a person who is 60 or

SB2832 - 14 - LRB098 15924 KTG 50971 b
more years of age, (ii) "disabled person" means a person
who has or reasonably appears to the association 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. An association or person furnishing
information pursuant to this item (14) 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.
(15) 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 association; or
(C) a proposed or actual securitization or

SB2832 - 15 - LRB098 15924 KTG 50971 b
secondary market sale (including sales of servicing
rights) related to a transaction of a member or holder
of capital.
Nothing in this item (15), 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.
(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)(l) For purposes of this paragraph (17) of
subsection (c) of Section 3-8, 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.

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(2) For purposes of this paragraph (17) of subsection
(c) of Section 3-8, 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) The furnishing of information in accordance with
the federal requirement of asset verification through
access to information held by financial institutions as set
forth in Section 1940 of the Social Security Act (42 U.S.C.
1396w) and pursuant to authorization by an applicant or
recipient of medical assistance under the Illinois Public
Aid Code or by any other person whose resources are
required by law to be disclosed to determine the
eligibility of the applicant or recipient for such
assistance. No association shall charge a fee to the
applicant or recipient of medical assistance or to the
State agency for the furnishing of information under this
paragraph (18). An association acting in accordance with
this paragraph (18) shall not be liable to any account
holder or other person for any disclosure of information to
a State agency provided the action does not constitute
gross negligence or willful misconduct.
(d) An association 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 holder

SB2832 - 17 - LRB098 15924 KTG 50971 b
of capital of that association unless:
(1) The member or holder of capital 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) An association 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 association mails a copy of the subpoena,
summons, warrant, citation to discover assets, or court order
to the person establishing the relationship with the
association, if living, and, otherwise, his personal
representative, if known, at his last known address by first
class mail, postage prepaid, unless the association is
specifically prohibited from notifying that person by order of
court.
(f)(1) Any officer or employee of an association 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.
(2) Any person who knowingly and willfully induces or
attempts to induce any officer or employee of an association to
disclose financial records in violation of this Section is
guilty of a business offense and, upon conviction, shall be

SB2832 - 18 - LRB098 15924 KTG 50971 b
fined not more than $1,000.
(g) However, if any member desires to communicate with the
other members of the association with reference to any question
pending or to be presented at a meeting of the members, the
association shall give him upon request a statement of the
approximate number of members entitled to vote at the meeting
and an estimate of the cost of preparing and mailing the
communication. The requesting member then shall submit the
communication to the Commissioner who, if he finds it to be
appropriate and truthful, shall direct that it be prepared and
mailed to the members upon the requesting member's payment or
adequate provision for payment of the expenses of preparation
and mailing.
(h) An association 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.
(Source: P.A. 98-49, eff. 7-1-13.)
Section 15. 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

SB2832 - 19 - LRB098 15924 KTG 50971 b
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

SB2832 - 20 - LRB098 15924 KTG 50971 b
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.

SB2832 - 21 - LRB098 15924 KTG 50971 b
(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
Uniform Disposition of 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

SB2832 - 22 - LRB098 15924 KTG 50971 b
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 or
disabled person 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) "disabled person" 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 or disabled person, and includes, without

SB2832 - 23 - LRB098 15924 KTG 50971 b
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 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.

SB2832 - 24 - LRB098 15924 KTG 50971 b
(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)(l) 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

SB2832 - 25 - LRB098 15924 KTG 50971 b
following: a retailer, a merchant, a manufacturer, a trade
group, or any such person's affiliate, subsidiary, member,
agent, or service provider.
(18) The furnishing of information in accordance with
the federal requirement of asset verification through
access to information held by financial institutions as set
forth in Section 1940 of the Social Security Act (42 U.S.C.
1396w) and pursuant to authorization by an applicant or
recipient of medical assistance under the Illinois Public
Aid Code or by any other person whose resources are
required by law to be disclosed to determine the
eligibility of the applicant or recipient for such
assistance. No savings bank shall charge a fee to the
applicant or recipient of medical assistance or to the
State agency for the furnishing of information under this
paragraph (18). A savings bank acting in accordance with
this paragraph (18) shall not be liable to any account
holder or other person for any disclosure of information to
a State agency provided the action does not constitute
gross negligence or willful misconduct.
(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

SB2832 - 26 - LRB098 15924 KTG 50971 b
(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

SB2832 - 27 - LRB098 15924 KTG 50971 b
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 are 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. 98-49, eff. 7-1-13.)

SB2832 - 28 - LRB098 15924 KTG 50971 b
Section 20. 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:

SB2832 - 29 - LRB098 15924 KTG 50971 b
(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

SB2832 - 30 - LRB098 15924 KTG 50971 b
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
Uniform Disposition of 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

SB2832 - 31 - LRB098 15924 KTG 50971 b
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 or
disabled person 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) "disabled person" means a person
who has or reasonably appears to the credit union to have a
physical or mental disability that impairs his or her

SB2832 - 32 - LRB098 15924 KTG 50971 b
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 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

SB2832 - 33 - LRB098 15924 KTG 50971 b
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)(l) 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.

SB2832 - 34 - LRB098 15924 KTG 50971 b
(17) The furnishing of information in accordance with
the federal requirement of asset verification through
access to information held by financial institutions as set
forth in Section 1940 of the Social Security Act (42 U.S.C.
1396w) and pursuant to authorization by an applicant or
recipient of medical assistance under the Illinois Public
Aid Code or by any other person whose resources are
required by law to be disclosed to determine the
eligibility of the applicant or recipient for such
assistance. No credit union shall charge a fee to the
applicant or recipient of medical assistance or to the
State agency for the furnishing of information under this
paragraph (17). A credit union acting in accordance with
this paragraph (17) shall not be liable to any account
holder or other person for any disclosure of information to
a State agency provided the action does not constitute
gross negligence or willful misconduct.
(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

SB2832 - 35 - LRB098 15924 KTG 50971 b
(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

SB2832 - 36 - LRB098 15924 KTG 50971 b
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. 97-133, eff. 1-1-12; 98-49, eff. 7-1-13.)
Section 25. The Illinois Public Aid Code is amended by
adding Section 11-5.1 as follows:
(305 ILCS 5/11-5.1)
Sec. 11-5.1. Eligibility verification. Notwithstanding any
other provision of this Code, with respect to applications for
medical assistance provided under Article V of this Code,
eligibility shall be determined in a manner that ensures
program integrity and complies with federal laws and
regulations while minimizing unnecessary barriers to
enrollment. To this end, as soon as practicable, and unless the

SB2832 - 37 - LRB098 15924 KTG 50971 b
Department receives written denial from the federal
government, this Section shall be implemented:
(a) The Department of Healthcare and Family Services or its
designees shall:
(1) By no later than July 1, 2011, require verification
of, at a minimum, one month's income from all sources
required for determining the eligibility of applicants for
medical assistance under this Code. Such verification
shall take the form of pay stubs, business or income and
expense records for self-employed persons, letters from
employers, and any other valid documentation of income
including data obtained electronically by the Department
or its designees from other sources as described in
subsection (b) of this Section.
(2) By no later than October 1, 2011, require
verification of, at a minimum, one month's income from all
sources required for determining the continued eligibility
of recipients at their annual review of eligibility for
medical assistance under this Code. Such verification
shall take the form of pay stubs, business or income and
expense records for self-employed persons, letters from
employers, and any other valid documentation of income
including data obtained electronically by the Department
or its designees from other sources as described in
subsection (b) of this Section. The Department shall send a
notice to recipients at least 60 days prior to the end of

SB2832 - 38 - LRB098 15924 KTG 50971 b
their period of eligibility that informs them of the
requirements for continued eligibility. If a recipient
does not fulfill the requirements for continued
eligibility by the deadline established in the notice a
notice of cancellation shall be issued to the recipient and
coverage shall end on the last day of the eligibility
period. A recipient's eligibility may be reinstated
without requiring a new application if the recipient
fulfills the requirements for continued eligibility prior
to the end of the month following the last date of
coverage. Nothing in this Section shall prevent an
individual whose coverage has been cancelled from
reapplying for health benefits at any time.
(3) By no later than July 1, 2011, require verification
of Illinois residency.
(b) The Department shall establish or continue cooperative
arrangements with the Social Security Administration, the
Illinois Secretary of State, the Department of Human Services,
the Department of Revenue, the Department of Employment
Security, and any other appropriate entity to gain electronic
access, to the extent allowed by law, to information available
to those entities that may be appropriate for electronically
verifying any factor of eligibility for benefits under the
Program. Data relevant to eligibility shall be provided for no
other purpose than to verify the eligibility of new applicants
or current recipients of health benefits under the Program.

SB2832 - 39 - LRB098 15924 KTG 50971 b
Data shall be requested or provided for any new applicant or
current recipient only insofar as that individual's
circumstances are relevant to that individual's or another
individual's eligibility.
(c) (Blank). Within 90 days of the effective date of this
amendatory Act of the 96th General Assembly, the Department of
Healthcare and Family Services shall send notice to current
recipients informing them of the changes regarding their
eligibility verification.
(d) Whenever the State determines that asset verification
is necessary for a determination of eligibility on the basis of
being aged, blind, or disabled, the Department shall require
the applicant for or recipient of medical assistance and any
other person whose resources are required by law to be
disclosed to determine the eligibility of the applicant or
recipient for such assistance to provide authorization for the
State to obtain any financial records held by any financial
institution with respect to the applicant's or recipient's or
such other person's resources, as applicable, from any
financial institution holding such records.
(1) The records shall be produced at no cost to the
applicant, recipient, or such other person, as applicable.
(2) For purposes of this subsection, a "financial
institution" means an office of any of the following,
located in any state or territory of the United States, the
District of Columbia, Puerto Rico, Guam, American Samoa, or

SB2832 - 40 - LRB098 15924 KTG 50971 b
the Virgin Islands:
(A) a bank;
(B) a savings bank;
(C) a card issuer, meaning any person who issues a
credit card, or the agent of such person with respect
to such card;
(D) an industrial loan company;
(E) a trust company;
(F) a savings association;
(G) a building and loan or homestead association
(including a cooperative bank); or
(H) a credit union or consumer finance
institution.
(3) For purposes of this subsection, "financial
record" means an original of, a copy of, or information
known to have been derived from any record held by a
financial institution pertaining to a customer's
relationship with the financial institution.
(Source: P.A. 96-1501, eff. 1-25-11.)