Illinois General Assembly - Full Text of HB3479
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Full Text of HB3479  103rd General Assembly


Rep. Mark L. Walker

Filed: 3/21/2023





10300HB3479ham001LRB103 29212 BMS 59307 a


2    AMENDMENT NO. ______. Amend House Bill 3479 on page 14,
3line 8, after "(7)", by inserting "or (16)"; and
4on page 23, line 2, by deleting "that"; and
5on page 25, line 7, by deleting "next"; and
6on page 26, line 21, by deleting "next"; and
7on page 31, line 16, by replacing "FBI" with "Federal Bureau of
8Investigation"; and
9on page 32, line 19, by replacing "Illinois" with "the
10Department"; and
11on page 51, line 21, by replacing "Between" with "between";



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1on page 57, line 10, by replacing "after" with "of"; and
2on page 58, by deleting lines 14 through 23; and
3on page 58, line 24, by replacing "(c)" with "(b)"; and
4on page 59, immediately below line 23, by inserting the
6    "(c) This Section does not apply to:
7        (1) money received for transmission subject to the
8    federal Remittance Rule, 12 CFR Part 1005, Subpart B, as
9    amended or recodified from time to time;
10        (2) money received for transmission pursuant to a
11    written agreement between the licensee and payee to
12    process payments for goods or services provided by the
13    payee;
14        (3) payroll processing services; or
15        (4) as authorized in the Secretary's sole
16    discretion."; and
17by replacing line 10 on page 68 through line 6 on page 69 with
18the following:
19                "(i) the original letter of credit, including
20            any amendments; and
21                (ii) A written statement from the beneficiary



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1            stating that any of the following events have
2            occurred:
3                    (I) the filing of a petition by or against
4                the licensee under the United States
5                Bankruptcy Code, 11 U.S.C. Sections 101
6                through 110, as amended or recodified from
7                time to time, for bankruptcy or
8                reorganization;
9                    (II) the filing of a petition by or
10                against the licensee for receivership, or the
11                commencement of any other judicial or
12                administrative proceeding for its dissolution
13                or reorganization;
14                    (III) the seizure of assets of a licensee
15                by the Secretary pursuant to an emergency
16                order issued in accordance with applicable
17                law, on the basis of an action, violation, or
18                condition that has caused or is likely to
19                cause the insolvency of the licensee; or
20                    (IV) the beneficiary has received notice
21                of expiration or nonextension of a letter of
22                credit and the licensee failed to demonstrate
23                to the satisfaction of the beneficiary that
24                the licensee will maintain permissible
25                investments in accordance with subsection (a)
26                of Section 10-3 upon the expiration or



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1                nonextension of the letter of credit."; and
2on page 74, line 7, by replacing "willful blindness" with
3"grossly negligent inattention to its legal obligations"; and
4on page 78, immediately below line 11, by inserting the
6"Section 11-4. Orders to cease and desist; civil penalties.
7    (a) If the Secretary determines that a licensee, an
8authorized delegate, or any other person has engaged or is
9engaged in practices contrary to this Act, the rules adopted
10under this Act, or an order issued under this Act, the
11Secretary may issue an order requiring the licensee or
12authorized delegate to cease and desist from the violation.
13The order becomes effective upon service of it upon the
14licensee or authorized delegate.
15    (b) The Secretary may issue an order against a licensee to
16cease and desist from providing money transmission through an
17authorized delegate that is the subject of a separate order by
18the Secretary.
19    (c) The Secretary may, in addition to or without the
20issuance of a cease and desist order, assess a penalty of up to
21$1,000 against a licensee or other person for each violation
22of this Act, the rules adopted under this Act, or an order
23issued under this Act as set forth in Section 11-6. The
24issuance of an order under this Section shall not be a



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1prerequisite to the taking of any action by the Secretary
2under this Section or any other Section of this Act.
3    (d) The Secretary shall issue a formal written notice of
4the cease and desist order, setting forth the specific reasons
5for the order and serve the licensee or the authorized
6delegate, either personally or by certified mail. Service by
7certified mail shall be deemed completed when the notice is
8deposited in United States mail."; and
9on page 81, line 20, by replacing "they conflict" with "this
10Act conflicts"; and
11on page 81, line 21, by replacing "establish" with "this Act
12establishes"; and
13on page 84, by replacing lines 18 through 21 with the
15    ""Confidential supervisory information" means information
16or documents obtained by employees, agents, or representatives
17of the Department in the course of any examination,
18investigation, audit, visit, registration, certification,
19review, licensing, or any other regulatory or supervisory
20activity pursuant to this Act, and any record prepared or
21obtained by the Department to the extent that the record
22summarizes or contains information derived from any report,
23document, or record described in this Act."; and



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1on page 86, immediately below line 11, by inserting the
3    "Digital asset business activity" does not include the
4development and dissemination of software in and of itself.";
6on page 95, lines 21 through 23, by replacing "Financial
7Protection Fund" each time it appears with "Digital Assets
8Regulation Fund"; and
9on page 96, lines 5 and 6, by replacing "Financial Protection
10Fund" with "Digital Assets Regulation Fund"; and
11on page 106, lines 3 through 5, by deleting ". The telephone
12line shall be operative 24 hours per day, Monday through
13Sunday"; and
14on page 112, line 14, by replacing "State" with "state"; and
15on page 112, by deleting lines 22 through 26; and
16on page 121, line 3, after "Regulations,", by inserting "or a
17charter as a New York State limited purpose trust company with
18approval to conduct virtual currency business under the New
19York Banking Law,"; and



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1on page 121, line 3, after "license", by inserting "or
2approval"; and
3on page 123, line 1, by replacing "State" with "state"; and
4on page 131, line 5, by replacing "State" with "state"; and
5on page 142, line 16, by replacing "Article" with "Section";
7on page 147, line 15, after "under", by inserting "this"; and
8on page 148, lines 12 and 13, by replacing "student loan
9servicing transaction" with "digital asset business activity";
11on page 152, line 2, by replacing "State" with "state"; and
12by replacing line 23 on page 153 through line 11 on page 154
13with the following:
14    "(a) Confidential supervisory information shall, unless
15made a matter of public record, not be subject to disclosure
16under the Freedom of Information Act, and shall only be
17subject to disclosure pursuant to subpoena or court order as
18provided in subsection (e)."; and



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1on page 154, line 17, by replacing "State" with "state"; and
2on page 154, by replacing line 20 through line 23 with "under
3this Act (1) shall not be subject to disclosure under the
4Freedom of Information Act, and (2) to the extent the records
5contain confidential supervisory information, shall only be
6subject to disclosure pursuant to subpoena or court order as
7provided in subsection (e)."; and
8on page 155, lines 10 through 14, by replacing "State" each
9time it appears with "state"; and
10on page 158, lines 6 and 7, by deleting "and any other
11financial law administered by the Department"; and
12on page 159, line 10, by deleting "; applicability"; and
13by deleting line 19 on page 159 through line 2 on page 160; and
14on page 160, immediately below line 2, by inserting the
16    "Section 135-10. Transition period.
17    (a) A covered person engaging in digital asset business
18activity without a license under this Act shall not be
19considered in violation of Section 115-5 until January 1,



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2    (b) A covered person engaging in digital asset business
3activity shall not be considered in violation of Sections
4105-5, 105-10, and 105-20 until January 1, 2024.
5    (c) A covered exchange shall not be considered in
6violation of Section 105-15 until January 1, 2025.
7    (d) Notwithstanding the foregoing, the Department may
8adopt rules pursuant to this Act upon this Act becoming law
9with such rules not to take effect earlier than January 1,
102024."; and
11on page 169, line 20, by replacing "Financial Protection Fund"
12with "Digital Assets Regulation Fund"; and
13on page 197, line 12, by replacing "like" with "like".