Bill Text: IL SB3617 | 2023-2024 | 103rd General Assembly | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Reinserts the provisions of the introduced bill with changes. Provides that no financial institution is required to enter into a data match agreement with the Department of Revenue. Effective immediately.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Passed) 2024-08-09 - Public Act . . . . . . . . . 103-1027 [SB3617 Detail]

Download: Illinois-2023-SB3617-Engrossed.html

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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Department of Revenue Law of the Civil
Administrative Code of Illinois is amended by adding Section
2505-430 as follows:
(20 ILCS 2505/2505-430 new)
Sec. 2505-430. Financial institution data matching.
(a) Definitions. As used in this Section:
"Account" means a demand deposit account, checking or
negotiable withdrawal order account, savings account, time
deposit account, or money market mutual fund account.
"Financial institution" means:
(1) a depository institution, which is any bank or
saving association;
(2) an insured depository institution, which is any
bank or saving institution the deposits of which are
insured pursuant to the Federal Deposit Insurance Act, or
any uninsured branch or agency of a foreign bank or a
commercial lending company owned or controlled by a
foreign bank;
(3) a federal depository institution, which is any
national bank, any federal savings association, or any

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federal branch;
(4) a state depository institution, which is any state
bank, any state savings association, or any insured branch
that is not a federal branch;
(5) a federal credit union, which is a cooperative
association organized in accordance with the provisions of
the Federal Credit Union Act;
(6) a state-chartered credit union that is organized
and operated according to the laws of this or any other
state, which laws provide for the organization of credit
unions similar in principle and objectives to federal
credit unions; and
(7) any benefit association, insurance company, safe
deposit company, money market mutual fund, or similar
entity authorized to do business in this State.
"Financial record" has the meaning given to that term in
Section 3401 of the federal Right to Financial Privacy Act of
1978.
(b) The Department may design and implement a data match
system pursuant to which the Department and financial
institutions doing business in this State may enter into
agreements for the purpose of identifying accounts of
taxpayers who are delinquent in the payment of a tax collected
by the Department. No financial institution shall be required
to enter into any such agreement with the Department. Nothing
in this Section shall be interpreted as requiring a financial

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institution to enter into an agreement with the Department or
as requiring a financial institution to change its current
practice of cooperating with the Department's requests on a
case-by-case basis.
Any agreement entered into with a financial institution
under this Section shall provide that the financial
institution shall compare the data of account holders, owners,
or customers who maintain one or more accounts at the
financial institution with data of individuals and business
entities who are identified by the Department as delinquent
taxpayers and whose name, record address, and social security
number or tax identification number are provided by the
Department to the financial institution.
If the financial institution or the Department determines
that the name and social security number or tax identification
number of an individual or business entity identified by the
Department as a delinquent taxpayer matches the name and
social security number or tax identification number of an
account holder, owner, or customer who maintains one or more
accounts at the financial institution, then the financial
institution shall report the individual's or business entity's
name and either social security number or tax identification
number to the Department for each calendar quarter in which
the Department notifies the financial institution that the
individual or business entity is a delinquent taxpayer.
(c) The reporting requirements of subsection (b) of this

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Section apply to personal (both individual and joint) and
business accounts, including sole proprietorship accounts. In
the case of a joint account, the account holder or owner shall
be deemed to be the primary account holder or owner
established by the financial institution in accordance with
the financial institution's internal procedures.
(d) The Department shall make a reasonable effort to
accommodate those financial institutions on which the
requirements of this Section would impose a hardship. In the
case of a non-automated financial institution, a paper copy
including either social security numbers or tax identification
numbers is an acceptable format. In order to allow for data
processing implementation, no agreement shall become effective
earlier than 90 days after its execution.
(e) All information provided by a financial institution
under this Section is confidential and may be used only for the
purpose of enforcing payment of delinquent taxes.
(f) A financial institution that provides information
under this Section shall not be liable to any account holder,
owner, or other person in any civil, criminal, or
administrative action for any of the following:
(1) disclosing the required information to the
Department, any other provisions of law notwithstanding;
(2) holding, encumbering, or surrendering any of an
individual's accounts as defined in subsection (a) of this
Section in response to a lien or order to withhold and

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deliver issued by the Department; or
(3) any other action taken or omission made in good
faith to comply with this Section, including individual or
mechanical errors, provided that the action or omission
does not constitute gross negligence or willful
misconduct.
(g) Each agreement under this Section shall provide that
the Department shall pay to the financial institution
providing or comparing the data a reasonable fee not to exceed
the institution's actual cost of providing the data or
performing the comparison.