Illinois Banking-Related Laws Effective Mid-2010

Many changes to Illinois banking-related law took effect at the beginning of the year and were highlighted in our 2009 End-of-Session Report.  Some changes have triggers in mid-2010 and beyond.  Some of these are highlighted in this article.  The complete text of each Public Act is at www.ilga.gov.

Expansion of Predatory Lending Database Program
Public Act 96-856 is an omnibus measure containing several unrelated legislative initiatives that took effect mostly on December 31, 2009.  One provision extends the "Predatory Lending Database Program" to Kane, Peoria and Will counties, beginning July 1, 2010.

Identity Protection Act
Public Act 96-874, effective June 1, creates a new Identity Protection Act.  The Act requires most state agencies and all local government units to create an identity protection policy within 12 months from the effective date of the Act.  Each unit of government must file a written copy of its privacy policy with its governing board within 30 days after the policy is approved.  Among other things, these policies must ensure that employees with access to Social Security numbers keep the numbers confidential and protect them from unauthorized disclosures by redacting them on documents and other information.

Procurement Reform
Public Act 96-795, effective July 1, overhauls the State's procurement procedures.  Amends the registration and reporting requirements for state contractors and requires subcontractor reporting.  Prohibits entities from bidding on a state contract if the entity helped the State determine the need for the contract, subject to certain exemptions.  Also establishes new official positions to oversee state procurement procedures.

Viatical Settlements Act
Public Act 96-736, effective July 1, creates the Viatical Settlements Act of 2009.  A viatical settlement is a contract to buy another person's insurance policy for a percentage of the face value of the policy.  Among its many provisions, the bill provides for the licensing and regulation of viatical settlement agreements, while grandfathering those currently licensed under the existing Viatical Settlements Act.  The Act regulates providers of viatical settlement agreements, as well as brokers and life insurance producers who act as brokers of viatical settlements.  The bill also amends the Illinois Securities Law of 1953 to include viatical investments in the definition of a "security."

Campaign Spending Caps
Public Act 96-832 (effective partly on July 1, 2010; remainder on January 1, 2011), contains a $5,000 limit on individual donations to any political campaign in a primary, with the same limit in place again for the general election, and a $10,000 limit for corporations, labor unions and political action committees in a primary, and again in a general election.  Candidate reporting requirements for contributions will increase significantly, and the State Board of Elections will have enhanced authority to conduct audits of campaigns.  In addition, a Task Force will be created to study the issue of campaign reform in order to make recommendations for future legislative actions.