HB4589 100TH GENERAL ASSEMBLY

LRB100 18278 XWW 33482 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB4589

Introduced , by Rep. Tony McCombie

SYNOPSIS AS INTRODUCED:

205 ILCS 205/9014	from Ch. 17, par. 7309-14
205 ILCS 205/9004 rep.

Amends the Savings Bank Act. Provides that a savings bank shall have its books, records, and accounts examined at least once every 18 months (rather than at least once in each year) in the same manner as a State Bank (rather than be audited by an independent licensed public accountant not connected with the savings bank). Removes requirements concerning an annual audit. Effective immediately.

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Savings Bank Act is amended by changing Section 9014 as follows:

(205 ILCS 205/9014) (from Ch. 17, par. 7309-14)

Sec. 9014. Examination Annual audit. (a) At least once every 18 months, in each year, but in no case more than 12 months after the last examination audit conducted pursuant to this Section, or more often if it is necessary or expedient, it shall be mandatory for each savings bank to have cause its books, records, and accounts examined in the same manner as a State bank under the Illinois Banking Act to be audited by an independent licensed public accountant not connected with the savings bank. This audit must produce a certified financial statement. The Commissioner may prescribe the scope of the audit within generally accepted auditing standards.

(b) The report of the audit shall be given to a committee composed of not fewer than 3 members of the board of directors, a majority of whom may not be an officer, employee, or agent of the savings bank, and the committee shall, at the meeting of the board of directors following receipt of the report, present in detail the nature, extent, and result of the report. A written summary of the committee's presentation, including a detailed listing of all criticisms made by the accountant conducting the audit and any responses thereto made by any member of the board of directors or any officer of the savings bank, shall be sent by registered mail to all members of the board of directors not present at the meeting at which the committee made its presentation.

(c) A copy of the audit report, including a balance sheet of the savings bank on the date of the audit and a statement of income and expenses of the savings bank during the year ending with the date of the audit and, if and when such is used, a copy of any written summary prepared for absent members of the board of directors shall be filed with the Commissioner by the committee receiving the report within 90 days of the audit date; except that the Commissioner may, for good cause shown, extend the filing date for up to 60 additional days.

(d) The report filed with the Commissioner shall be certified by the independent licensed public accountant conducting the audit. If any savings bank required to make an audit shall fail to cause an audit to be made, the Commissioner shall cause the audit to be made by an independent licensed public accountant at the savings bank's expense. In lieu of the audit required by this Section, the Commissioner may accept any audit or financial statement or portion thereof made exclusively for or in accordance and in compliance with regulations adopted by the Federal Deposit Insurance Corporation.

(e) A savings bank holding company shall cause its books and records to be audited at least once annually by an independent licensed public accountant. A copy of the independent licensed public accountant's report, along with all supporting documentation, shall be filed with the Commissioner. The report of audit shall be on a consolidated basis unless, in the auditor's opinion, certain subsidiaries or parent entities should be reported separately. If separate reports are prepared, they shall be prepared on the same basis as the report on the holding company.

(Source: P.A. 89-320, eff. 1-1-96; 90-301, eff. 8-1-97.)

(205 ILCS 205/9004 rep.)

Section 10. The Savings Bank Act is amended by repealing Section 9004.

Section 99. Effective date. This Act takes effect upon becoming law.