Sen. Antonio Muņoz
Filed: 10/28/2019
 
 


 




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1
AMENDMENT TO SENATE BILL 670 




2 AMENDMENT NO. ______. Amend Senate Bill 670 by replacing 
3everything after the enacting clause with the following:


4 "Section 5. The Freedom of Information Act is amended by 
5changing Section 7.5 as follows:

6 (5 ILCS 140/7.5)
7 Sec. 7.5. Statutory exemptions. To the extent provided for 
8by the statutes referenced below, the following shall be exempt 
9from inspection and copying:
10  (a) All information determined to be confidential 
11 under Section 4002 of the Technology Advancement and 
12 Development Act.
13  (b) Library circulation and order records identifying 
14 library users with specific materials under the Library 
15 Records Confidentiality Act.
16  (c) Applications, related documents, and medical 
 
 
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1 records received by the Experimental Organ Transplantation 
2 Procedures Board and any and all documents or other records 
3 prepared by the Experimental Organ Transplantation 
4 Procedures Board or its staff relating to applications it 
5 has received.
6  (d) Information and records held by the Department of 
7 Public Health and its authorized representatives relating 
8 to known or suspected cases of sexually transmissible 
9 disease or any information the disclosure of which is 
10 restricted under the Illinois Sexually Transmissible 
11 Disease Control Act.
12  (e) Information the disclosure of which is exempted 
13 under Section 30 of the Radon Industry Licensing Act.
14  (f) Firm performance evaluations under Section 55 of 
15 the Architectural, Engineering, and Land Surveying 
16 Qualifications Based Selection Act.
17  (g) Information the disclosure of which is restricted 
18 and exempted under Section 50 of the Illinois Prepaid 
19 Tuition Act.
20  (h) Information the disclosure of which is exempted 
21 under the State Officials and Employees Ethics Act, and 
22 records of any lawfully created State or local inspector 
23 general's office that would be exempt if created or 
24 obtained by an Executive Inspector General's office under 
25 that Act.
26  (i) Information contained in a local emergency energy 
 
 
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1 plan submitted to a municipality in accordance with a local 
2 emergency energy plan ordinance that is adopted under 
3 Section 11-21.5-5 of the Illinois Municipal Code.
4  (j) Information and data concerning the distribution 
5 of surcharge moneys collected and remitted by carriers 
6 under the Emergency Telephone System Act.
7  (k) Law enforcement officer identification information 
8 or driver identification information compiled by a law 
9 enforcement agency or the Department of Transportation 
10 under Section 11-212 of the Illinois Vehicle Code.
11  (l) Records and information provided to a residential 
12 health care facility resident sexual assault and death 
13 review team or the Executive Council under the Abuse 
14 Prevention Review Team Act.
15  (m) Information provided to the predatory lending 
16 database created pursuant to Article 3 of the Residential 
17 Real Property Disclosure Act, except to the extent 
18 authorized under that Article.
19  (n) Defense budgets and petitions for certification of 
20 compensation and expenses for court appointed trial 
21 counsel as provided under Sections 10 and 15 of the Capital 
22 Crimes Litigation Act. This subsection (n) shall apply 
23 until the conclusion of the trial of the case, even if the 
24 prosecution chooses not to pursue the death penalty prior 
25 to trial or sentencing.
26  (o) Information that is prohibited from being 
 
 
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1 disclosed under Section 4 of the Illinois Health and 
2 Hazardous Substances Registry Act.
3  (p) Security portions of system safety program plans, 
4 investigation reports, surveys, schedules, lists, data, or 
5 information compiled, collected, or prepared by or for the 
6 Regional Transportation Authority under Section 2.11 of 
7 the Regional Transportation Authority Act or the St. Clair 
8 County Transit District under the Bi-State Transit Safety 
9 Act. 
10  (q) Information prohibited from being disclosed by the 
11 Personnel Record Review Act. 
12  (r) Information prohibited from being disclosed by the 
13 Illinois School Student Records Act. 
14  (s) Information the disclosure of which is restricted 
15 under Section 5-108 of the Public Utilities Act. 

16  (t) All identified or deidentified health information 
17 in the form of health data or medical records contained in, 
18 stored in, submitted to, transferred by, or released from 
19 the Illinois Health Information Exchange, and identified 
20 or deidentified health information in the form of health 
21 data and medical records of the Illinois Health Information 
22 Exchange in the possession of the Illinois Health 
23 Information Exchange Authority due to its administration 
24 of the Illinois Health Information Exchange. The terms 
25 "identified" and "deidentified" shall be given the same 
26 meaning as in the Health Insurance Portability and 
 
 
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1 Accountability Act of 1996, Public Law 104-191, or any 
2 subsequent amendments thereto, and any regulations 
3 promulgated thereunder. 
4  (u) Records and information provided to an independent 
5 team of experts under the Developmental Disability and 
6 Mental Health Safety Act (also known as Brian's Law). 
7  (v) Names and information of people who have applied 
8 for or received Firearm Owner's Identification Cards under 
9 the Firearm Owners Identification Card Act or applied for 
10 or received a concealed carry license under the Firearm 
11 Concealed Carry Act, unless otherwise authorized by the 
12 Firearm Concealed Carry Act; and databases under the 
13 Firearm Concealed Carry Act, records of the Concealed Carry 
14 Licensing Review Board under the Firearm Concealed Carry 
15 Act, and law enforcement agency objections under the 
16 Firearm Concealed Carry Act. 
17  (w) Personally identifiable information which is 
18 exempted from disclosure under subsection (g) of Section 
19 19.1 of the Toll Highway Act.
20  (x) Information which is exempted from disclosure 
21 under Section 5-1014.3 of the Counties Code or Section 
22 8-11-21 of the Illinois Municipal Code. 
23  (y) Confidential information under the Adult 
24 Protective Services Act and its predecessor enabling 
25 statute, the Elder Abuse and Neglect Act, including 
26 information about the identity and administrative finding 
 
 
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1 against any caregiver of a verified and substantiated 
2 decision of abuse, neglect, or financial exploitation of an 
3 eligible adult maintained in the Registry established 
4 under Section 7.5 of the Adult Protective Services Act. 
5  (z) Records and information provided to a fatality 
6 review team or the Illinois Fatality Review Team Advisory 
7 Council under Section 15 of the Adult Protective Services 
8 Act. 
9  (aa) Information which is exempted from disclosure 
10 under Section 2.37 of the Wildlife Code. 
11  (bb) Information which is or was prohibited from 
12 disclosure by the Juvenile Court Act of 1987. 
13  (cc) Recordings made under the Law Enforcement 
14 Officer-Worn Body Camera Act, except to the extent 
15 authorized under that Act.
16  (dd) Information that is prohibited from being 
17 disclosed under Section 45 of the Condominium and Common 
18 Interest Community Ombudsperson Act. 
19  (ee) Information that is exempted from disclosure 
20 under Section 30.1 of the Pharmacy Practice Act. 
21  (ff) Information that is exempted from disclosure 
22 under the Revised Uniform Unclaimed Property Act. 
23  (gg) Information that is prohibited from being 
24 disclosed under Section 7-603.5 of the Illinois Vehicle 
25 Code. 
26  (hh) Records that are exempt from disclosure under 
 
 
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1 Section 1A-16.7 of the Election Code. 
2  (ii) Information which is exempted from disclosure 
3 under Section 2505-800 of the Department of Revenue Law of 
4 the Civil Administrative Code of Illinois. 
5  (jj) Information and reports that are required to be 
6 submitted to the Department of Labor by registering day and 
7 temporary labor service agencies but are exempt from 
8 disclosure under subsection (a-1) of Section 45 of the Day 
9 and Temporary Labor Services Act. 
10  (kk) Information prohibited from disclosure under the 
11 Seizure and Forfeiture Reporting Act. 
12  (ll) Information the disclosure of which is restricted 
13 and exempted under Section 5-30.8 of the Illinois Public 
14 Aid Code. 
15  (mm) Records that are exempt from disclosure under 
16 Section 4.2 of the Crime Victims Compensation Act. 
17  (nn) Information that is exempt from disclosure under 
18 Section 70 of the Higher Education Student Assistance Act. 
19  (oo) Communications, notes, records, and reports 
20 arising out of a peer support counseling session prohibited 
21 from disclosure under the First Responders Suicide 
22 Prevention Act. 
23  (pp) Names and all identifying information relating to 
24 an employee of an emergency services provider or law 
25 enforcement agency under the First Responders Suicide 
26 Prevention Act. 
 
 
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1  (qq) (oo) Information and records held by the 
2 Department of Public Health and its authorized 
3 representatives collected under the Reproductive Health 
4 Act. 
5  (rr) (oo) Information that is exempt from disclosure 
6 under the Cannabis Regulation and Tax Act. 
7  (ss) (oo) Data reported by an employer to the 
8 Department of Human Rights pursuant to Section 2-108 of the 
9 Illinois Human Rights Act.
10  (tt) (oo) Recordings made under the Children's 
11 Advocacy Center Act, except to the extent authorized under 
12 that Act. 
13  (uu) (oo) Information that is exempt from disclosure 
14 under Section 50 of the Sexual Assault Evidence Submission 
15 Act. 
16  (vv) (oo) Information that is exempt from disclosure 
17 under subsections (f) and (j) of Section 5-36 of the 
18 Illinois Public Aid Code. 
19  (ww) (oo) Information that is exempt from disclosure 
20 under Section 16.8 of the State Treasurer Act. 
21  (xx) Information that is exempt from disclosure or 
22 information that shall not be made public under the 
23 Illinois Insurance Code. 
24(Source: P.A. 100-20, eff. 7-1-17; 100-22, eff. 1-1-18; 
25100-201, eff. 8-18-17; 100-373, eff. 1-1-18; 100-464, eff. 
268-28-17; 100-465, eff. 8-31-17; 100-512, eff. 7-1-18; 100-517, 
 
 
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1eff. 6-1-18; 100-646, eff. 7-27-18; 100-690, eff. 1-1-19; 
2100-863, eff. 8-14-18; 100-887, eff. 8-14-18; 101-13, eff. 
36-12-19; 101-27, eff. 6-25-19; 101-81, eff. 7-12-19; 101-221, 
4eff. 1-1-20; 101-236, eff. 1-1-20; 101-375, eff. 8-16-19; 
5101-377, eff. 8-16-19; 101-452, eff. 1-1-20; 101-466, eff. 
61-1-20; revised 9-25-19.)

7 Section 10. The Illinois Insurance Code is amended by 
8adding Article VIII.33 as follows:

9 (215 ILCS 5/Art. VIII.33 heading new)
10
ARTICLE VIII 1/3.  Corporate Governance Annual Disclosure Law


11 (215 ILCS 5/130.1 new)
12 Sec. 130.1. Short title. This Article may be cited as the 
13Corporate Governance Annual Disclosure Law. 

14 (215 ILCS 5/130.2 new)
15 Sec. 130.2. Purpose and scope. The purpose of this Article 
16is to:
17  (1) provide the Director a summary of an insurer's or 
18 insurance group's corporate governance structure, 
19 policies, and practices to permit the Director to gain and 
20 maintain an understanding of the insurer's corporate 
21 governance framework;
22  (2) outline the requirements for completing a 
 
 
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1 corporate governance annual disclosure with the Director;
2  (3) provide for the confidential treatment of the 
3 corporate governance annual disclosure and related 
4 information that will contain confidential and sensitive 
5 information related to an insurer's or insurance group's 
6 internal operations and proprietary and trade-secret 
7 information that, if made public, could potentially cause 
8 the insurer or insurance group competitive harm or 
9 disadvantage.
10 Nothing in this Article shall be construed to prescribe or 
11impose corporate governance standards and internal procedures 
12beyond that which is required under applicable State corporate 
13law. Notwithstanding the foregoing, nothing in this Article 
14shall be construed to limit the Director's authority or the 
15rights or obligations of third parties under Sections 131.21, 
16132 through 132.7, and 401 through 403.
The requirements of 
17this Article apply to all insurers domiciled in this State.

18 (215 ILCS 5/130.3 new)
19 Sec. 130.3. Definitions. As used in this Article: 
20 "Director" means the Director of Insurance.
21 "Corporate governance annual disclosure" means a 
22confidential report filed by the insurer or insurance group 
23made in accordance with the requirements of this Article.
24 "Insurance group" means those insurers and affiliates 
25included within an insurance holding company system as defined 
 
 
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1in Section 131.1.
2 "Insurer" has the same meaning given to that term in 
3Section 2, except that it does not include agencies, 
4authorities, or instrumentalities of the United States, its 
5possessions and territories, the Commonwealth of Puerto Rico, 
6the District of Columbia, or a state or political subdivision 
7of a state.
8 "ORSA summary report" means the own risk and solvency 
9assessment report filed in accordance with Article VIII 1/4.

10 (215 ILCS 5/130.4 new)
11 Sec. 130.4. Disclosure requirement.
12 (a) An insurer, or the insurance group of which the insurer 
13is a member, shall, no later than June 1 of each calendar year, 
14submit to the Director a corporate governance annual disclosure 
15that contains the information described in subsection (b) of 
16Section 130.5. Notwithstanding any request from the Director 
17made pursuant to subsection (c), if the insurer is a member of 
18an insurance group, the insurer shall submit the report 
19required by this Section to the Director of the lead state for 
20the insurance group, in accordance with the laws of the lead 
21state, as determined by the procedures outlined in the most 
22recent Financial Analysis Handbook adopted by the National 
23Association of Insurance Commissioners.
24 (b) The corporate governance annual disclosure must 
25include a signature of the insurer's or insurance group's chief 
 
 
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1executive officer or corporate secretary attesting to the best 
2of that individual's belief and knowledge that the insurer has 
3implemented the corporate governance practices required by 
4this Section and that a copy of the disclosure has been 
5provided to the insurer's board of directors or the appropriate 
6committee thereof.
7 (c) An insurer not required to submit a corporate 
8governance annual disclosure under this Section shall do so 
9upon the Director's request.
10 (d) For purposes of completing the corporate governance 
11annual disclosure, the insurer or insurance group may provide 
12information regarding corporate governance at the ultimate 
13controlling parent level, an intermediate holding company 
14level, or the individual legal entity level, depending upon how 
15the insurer or insurance group has structured its system of 
16corporate governance. The insurer or insurance group is 
17encouraged to make the corporate governance annual disclosure 
18at the level at which the insurer's or insurance group's risk 
19appetite is determined, the level at which the earnings, 
20capital, liquidity, operations, and reputation of the insurer 
21are overseen collectively and at which the supervision of those 
22factors is coordinated and exercised, or the level at which 
23legal liability for failure of general corporate governance 
24duties would be placed. If the insurer or insurance group 
25determines the level of reporting based on these criteria, it 
26shall indicate which of the 3 criteria was used to determine 
 
 
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1the level of reporting and explain any subsequent changes in 
2the level of reporting.
3 (e) The review of the corporate governance annual 
4disclosure and any additional requests for information shall be 
5made through the lead state as determined by the procedures 
6within the most recent Financial Analysis Handbook adopted by 
7the National Association of Insurance Commissioners.
8 (f) Insurers providing information substantially similar 
9to the information required by this Article in other documents 
10provided to the Director, including proxy statements filed in 
11conjunction with the requirements of Section 131.13 or other 
12State or federal filings provided to the Department, are not 
13required to duplicate that information in the corporate 
14governance annual disclosure but are only required to 
15cross-reference the document in which the information is 
16included.

17 (215 ILCS 5/130.5 new)
18 Sec. 130.5. Contents of corporate governance annual 
19disclosure.
20 (a) The insurer or insurance group has discretion over the 
21responses to the corporate governance annual disclosure 
22inquiries if the corporate governance annual disclosure 
23contains the material information necessary to permit the 
24Director to gain an understanding of the insurer's or insurance 
25group's corporate governance structure, policies, and 
 
 
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1practices. The Director may request additional information 
2that he or she deems material and necessary to provide the 
3Director with a clear understanding of the corporate governance 
4policies, the reporting or information system, or controls 
5implementing those policies.
6 (b) Notwithstanding subsection (a), the corporate 
7governance annual disclosure shall be prepared in a manner 
8consistent with rules adopted by the Director. Documentation 
9and supporting information shall be maintained and made 
10available upon examination or upon the request of the Director.
11 (c) The Director may retain, at the insurer's expense, 
12third-party consultants, including attorneys, actuaries, 
13accountants, and other experts not otherwise a part of the 
14Director's staff, as may be reasonably necessary to assist the 
15Director in reviewing the corporate governance annual 
16disclosure and related information or the insurer's compliance 
17with this Article. Any persons retained shall be under the 
18direction and control of the Director and shall act only in an 
19advisory capacity.

20 (215 ILCS 5/130.6 new)
21 Sec. 130.6. Confidentiality.
22 (a) Documents, materials, or other information, including 
23the corporate governance annual disclosure, in the possession 
24or control of the Department that are obtained by, created by, 
25or disclosed to the Director or any other person under this 
 
 
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1Article are recognized by this State as being proprietary and 
2to contain trade secrets. All such documents, materials, or 
3other information shall be confidential by law and privileged, 
4shall not be subject to the Freedom of Information Act, shall 
5not be subject to subpoena, and shall not be subject to 
6discovery or admissible in evidence in any private civil 
7action. However, the Director is authorized to use the 
8documents, materials, or other information in furtherance of 
9any regulatory or legal action brought as a part of the 
10Director's official duties. The Director shall not otherwise 
11make the documents, materials, or other information public 
12without the prior written consent of the insurer.
13 (b) Neither the Director nor any person who received 
14documents, materials, or other corporate governance annual 
15disclosure-related information through examination or 
16otherwise, while acting under the authority of the Director or 
17with whom such documents, materials, or other information are 
18shared pursuant to this Article, shall be permitted or required 
19to testify in any private civil action concerning any 
20confidential documents, materials, or information subject to 
21subsection (a).
22 (c) In order to assist in the performance of the Director's 
23regulatory duties, the Director may:
24  (1) upon request, share documents, materials, or other 
25 corporate governance annual disclosure-related 
26 information, including the confidential and privileged 
 
 
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1 documents, materials, and information subject to 
2 subsection (a), including proprietary and trade-secret 
3 documents and materials with other state, federal, and 
4 international financial regulatory agencies, including 
5 members of any supervisory college as defined in subsection 
6 (c) of Section 131.20, with the National Association of 
7 Insurance Commissioners, and with third-party consultants, 
8 if the recipient agrees in writing to maintain the 
9 confidentiality and privileged status of the corporate 
10 governance annual disclosure-related documents, materials, 
11 or other information and has verified in writing the legal 
12 authority to maintain confidentiality; and
13  (2) receive documents, materials, or other corporate 
14 governance annual disclosure-related information, 
15 including otherwise confidential and privileged documents, 
16 materials, and information, including proprietary and 
17 trade-secret information and documents from regulatory 
18 officials of other state, federal, and international 
19 financial regulatory agencies, including members of any 
20 supervisory college as defined in subsection (c) of Section 
21 131.20, and from the National Association of Insurance 
22 Commissioners, and shall maintain as confidential or 
23 privileged any documents, materials, or information 
24 received with notice or the understanding that it is 
25 confidential or privileged under the laws of the 
26 jurisdiction that is the source of the document, material, 
 
 
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1 or information.
2 (d) A written agreement with the National Association of 
3Insurance Commissioners or a third-party consultant governing 
4sharing and use of information provided pursuant to this 
5Article shall:
6  (1) include specific procedures and protocols for 
7 maintaining the confidentiality and security of corporate 
8 governance annual disclosure-related information shared 
9 with the National Association of Insurance Commissioners 
10 or a third-party consultant pursuant to this Article, 
11 including procedures and protocols for sharing by the 
12 National Association of Insurance Commissioners only with 
13 other state regulators from states in which the insurance 
14 group has domiciled insurers; the agreement shall provide 
15 that the recipient agrees in writing to maintain the 
16 confidentiality and privileged status of the corporate 
17 governance annual disclosure-related documents, materials, 
18 or other information and has verified in writing the legal 
19 authority to maintain confidentiality;
20  (2) specify that ownership of the corporate governance 
21 annual disclosure-related information shared with the 
22 National Association of Insurance Commissioners or a 
23 third-party consultant remains with the Director and that 
24 the National Association of Insurance Commissioners' or 
25 third-party consultant's use of the information is subject 
26 to the direction of the Director;
 
 
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1  (3) prohibit the National Association of Insurance 
2 Commissioners or a third-party consultant from storing the 
3 information shared pursuant to this Article in a permanent 
4 database after the underlying analysis is completed;
5  (4) require the National Association of Insurance 
6 Commissioners or a third-party consultant to provide 
7 prompt notice to the Director and to the insurer or 
8 insurance group regarding any subpoena, request for 
9 disclosure, or request for production of the insurer's or 
10 insurance group's corporate governance annual 
11 disclosure-related information;
12  (5) require the National Association of Insurance 
13 Commissioners or a third-party consultant to consent to 
14 intervention by an insurer in any judicial or 
15 administrative action in which the National Association of 
16 Insurance Commissioners or a third-party consultant may be 
17 required to disclose confidential information about the 
18 insurer shared with the National Association of Insurance 
19 Commissioners or a third-party consultant pursuant to this 
20 Article; and
21  (6) require the National Association of Insurance 
22 Commissioners or a third-party consultant to obtain 
23 written consent of the insurer before making any of the 
24 insurer's corporate governance annual disclosure-related 
25 information public.
26 (e) The sharing of information and documents by the 
 
 
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1Director pursuant to this Article shall not constitute a 
2delegation of regulatory authority or rulemaking, and the 
3Director is solely responsible for the administration, 
4execution, and enforcement of this Article.
5 (f) No waiver of any applicable privilege or claim of 
6confidentiality in the documents, proprietary and trade-secret 
7materials, or other corporate governance annual 
8disclosure-related information shall occur as a result of 
9disclosure of such information or documents to the Director 
10under this Section or as a result of sharing as authorized in 
11this Article.
12 (g) Documents, materials, or other information in the 
13possession or control of the National Association of Insurance 
14Commissioners or any third-party consultants pursuant to this 
15Article shall be confidential by law and privileged, shall not 
16be subject to the Freedom of Information Act, shall not be 
17subject to subpoena, and shall not be subject to discovery or 
18admissible in evidence in any private civil action.

19 (215 ILCS 5/130.7 new)
20 Sec. 130.7. Sanctions. Any insurer failing, without just 
21cause, to timely file the corporate governance annual 
22disclosure as required in this Article shall be required, after 
23notice and a hearing, to pay a penalty of $200 for each day's 
24delay, to be recovered by the Director. Any penalty recovered 
25shall be paid into the General Revenue Fund. The Director may 
 
 
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1reduce the penalty if the insurer demonstrates to the Director 
2that the imposition of the penalty would constitute a financial 
3hardship to the insurer.


4 Section 99. Effective date. This Act takes effect upon 
5becoming law.".