SB1676 95TH GENERAL ASSEMBLY

LRB095 11020 MJR 31335 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB1676

Introduced 2/9/2007, by Sen. Jacqueline Y. Collins

SYNOPSIS AS INTRODUCED:

20 ILCS 3205/6	from Ch. 17, par. 456
205 ILCS 5/80	from Ch. 17, par. 392

Amends the Office of Banks and Real Estate Act. Provides that the Commissioner of Banks and Real Estate shall adopt rules establishing the minimum education requirements and training requirements for examiners appointed or assigned to examine the affairs of State-chartered banks. Provides that the rules are to be proposed no later than 180 days after the effective date after consultation with the State Banking Board of Illinois. Requires the consultation of the Board of Trustees of the Illinois Bank Examiners' Education Foundation only when education or training of examiners is to be funded, in whole or in part, from the Illinois Bank Examiners' Education Fund. Amends the Illinois Banking Act. Requires the Commissioner to consult with the State Banking Board of Illinois and to receive comments from the Board on matters pertaining to the minimum education and training requirements for bank examiners. Requires the Board to submit to the Commissioner proposed suggestions or revisions regarding any rule that the Commissioner may propose pursuant to certain provisions in the Office of Banks and Real Estate Act. Effective immediately.

FISCAL NOTE ACT MAY APPLY

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 Office of Banks and Real Estate Act is amended by changing Section 6 as follows:

(20 ILCS 3205/6) (from Ch. 17, par. 456)

Sec. 6. Duties. The Commissioner shall direct and supervise all the administrative and technical activities of the Office and shall:

(a) Apply and carry out this Act and the law and all rules adopted in pursuance thereof.

(b) Appoint, subject to the provisions of the Personnel Code, such employees, experts, and special assistants as may be necessary to carry out effectively the provisions of this Act and, if the rate of compensation is not otherwise fixed by law, fix their compensation; but neither the Commissioner nor any deputy commissioner shall be subject to the Personnel Code.

(c) Serve as Chairman of the State Banking Board of Illinois.

(d) Serve as Chairman of the Board of Trustees of the Illinois Bank Examiners' Education Foundation.

(e) Issue guidelines in the form of rules or regulations which will prohibit discrimination by any State chartered bank against any individual, corporation, partnership, association or other entity because it appears in a so-called blacklist issued by any domestic or foreign corporate or governmental entity.

(f) Make an annual report to the Governor regarding the work of the Office as the Commissioner may consider desirable or as the Governor may request.

(g) Perform such other acts as may be requested by the State Banking Board of Illinois pursuant to its lawful powers and perform any other lawful act that the Commissioner considers to be necessary or desirable to carry out the purposes and provisions of this Act.

(h) Adopt, in accordance with the Illinois Administrative Procedure Act, reasonable rules that the Commissioner deems necessary for the proper administration and enforcement of any Act the administration of which is vested in the Commissioner or the Office of Banks and Real Estate.

(i) Work in cooperation with the Director of Aging to encourage all financial institutions regulated by the Office to participate fully in the Department on Aging's financial exploitation of the elderly intervention program.

(j) Adopt rules establishing the minimum education requirements and training requirements for examiners appointed or assigned to examine the affairs of State-chartered banks. The rules are to be proposed no later than 180 days after the effective date of this amendatory Act of the 95th General Assembly after consultation with the State Banking Board of Illinois. In addition to consultation with the State Banking Board of Illinois, the Commissioner shall consult with and receive approval from the Board of Trustees of the Illinois Bank Examiners' Education Foundation only when education or training of examiners is to be funded, in whole or in part, from the Illinois Bank Examiners' Education Fund.

(k) For the purposes of this Section:

"Commissioner" means the Director of Financial and Professional Regulation of the Division of Banks and Real Estate; and

"Office" or "Office of Banks and Real Estate" means the Department of Financial and Professional Regulation.

(Source: P.A. 92-483, eff. 8-23-01; 93-786, eff. 7-21-04.)

Section 10. The Illinois Banking Act is amended by changing Section 80 as follows:

(205 ILCS 5/80) (from Ch. 17, par. 392)

Sec. 80. Board; powers. The Board shall have the following powers in addition to any others that may be granted to it by law:

(a) To make, alter, and amend rules and regulations proposed for adoption by the Commissioner with respect to the following matters:

(i) The scope and nature of showings to be furnished and evidence to be presented in connection with the granting of charters of new banks, and in connection with the approval by the Commissioner of mergers, conversions, consolidations and changes of location, and the forms upon which any of such showings may be made.

(ii) The steps to be taken and the showings to be furnished in connection with voluntary dissolutions under Sections 68 to 74, inclusive, of this Act, and the forms upon which such showing are to be made.

(iii) The form, content and nature of the reports to be furnished to the Commissioner under Section 47 of this Act, and the definition of the scope of examinations and the data to be furnished in connection with examinations by the Commissioner under subsection (2) and subsection (5) of Section 48 of this Act.

(b) To review, consider and make recommendations to the Commissioner upon any banking matters.

(c) To require the Commissioner to report periodically to the Board on any banking matters, including the following:

(i) Data with respect to banks whose condition or practices are being critically considered or reviewed by the Commissioner pursuant to Section 51 of this Act, and data with respect to banks to which any notice has been given by the Commissioner pursuant to said Section 51; and

(ii) The extent and nature of all disciplinary action taken by the Commissioner against any bank or any officer or director thereof, and information with respect to the manner or extent of the remedial action, if any, taken by the criticized bank or director or officer; and

(iii) The extent and nature of all action taken by the Commissioner under or pursuant to Section 52 of this Act; and

(iv) The extent and nature of all action taken by the Commissioner under or pursuant to Section 31 of this Act.

(d) To require the Commissioner to furnish the Board reports in respect of the granting or of the denial of new charters, mergers, changes of location, conversions or consolidations, including the findings made and the basis for the action taken by the Commissioner in connection therewith.

(e) To review, consider and submit to the Commissioner and to the Governor proposals for amendments to this Act or for changes in or additions to the administration thereof which in the opinion of the Board are necessary or desirable in order to assure the safe and sound conduct of the banking business.

(f) To require the Commissioner to furnish the Board space for meetings to be held by the Board as well as to require the Commissioner to provide such clerical and technical assistance as the Board may require.

(g) To adopt its own by-laws with respect to Board meetings and procedures. Such by-laws shall provide that:

(i) A majority of the whole Board constitutes a quorum.

(ii) A majority of the quorum shall constitute effective action except that a vote of a majority of the whole Board shall be necessary for the approval of rules and regulations proposed for adoption by the Commissioner under Section 80(a), (i), (ii) and (iii) of this Act and shall be necessary for recommendations made to the Commissioner and to the Governor with regard to proposed amendments to this Act or to the administrative practices hereunder.

(iii) The Board shall meet at least once in each calendar year and upon the call of the Commissioner or a majority of the Board. The Commissioner or a majority of the Board may call such special or additional meetings as may be deemed necessary or desirable.

(h) To make rules to regulate the method of selecting candidates for consideration by the Governor to fill a vacancy in the Office of the Commissioner and the deputy commissioners.

(i) To make rules to regulate the method of selecting candidates for consideration by the Governor to fill a vacancy in the office of any of the 10 Class B members of the Board.

(j) To make rules to regulate the conduct of hearings under subsection (7) of Section 48 of this Act.

(k) To subpoena witnesses, to compel their attendance, to administer an oath, to examine any person under oath and to require the production of any relevant books, papers, accounts and documents in the course of and pursuant to any hearing being conducted under subsection (7) of Section 48 of this Act.

(l) To appoint hearing officers to conduct hearings under subsection (7) of Section 48 of this Act.

(m) To require the Commissioner to consult with the Board and to receive comments from the Board on matters pertaining to the minimum education and training requirements for bank examiners and require the Board to submit to the Commissioner proposed suggestions or revisions regarding any rule that the Commissioner may propose pursuant to Section 6(j) of the Office of Banks and Real Estate Act.

(n) For the purposes of this Section:

"Commissioner" means the Director of Financial and Professional Regulation of the Division of Banks and Real Estate; and

"Office" means the Department of Financial and Professional Regulation.

(Source: P.A. 89-508, eff. 7-3-96.)

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