Illinois Sen. Walker’s financial records management bill passes House and Senate

Passed bill authored by State Sen. Mark L. Walker seeks to update Illinois statutes governing financial institutions’ management and disclosure of customer records, aiming to clarify lawful sharing and enhance protections, according to the Illinois General Assembly.

In the House, 75 Democrats and 40 Republicans voted in favor of the bill.

Meanwhile, in the Senate, 37 Democrats and 19 Republicans voted in favor of the bill.

Walker introduced the bill in the Illinois Senate on Feb. 6, 2025 during the 104th session.

The legislation, known as SB1777, was passed on May 22, 2025 during the general assembly session 104.

According to the Illinois General Assembly site, the legislature summarized the bill’s official text as follows: “Amends the Illinois Banking Act. In provisions concerning customer financial records and confidentiality, provides that the language does not prohibit the furnishing of financial information to the executor, executrix, administrator, or other lawful representative of the estate of a customer. Amends the Savings Bank Act and the Illinois Credit Union Act to make the same changes. Amends the Illinois Credit Union Act. Amends the Illinois Trust and Payable on Death Accounts Act. Provides that any holder of an account may elect a per stirpes distribution option to the descendants of a natural person beneficiary if the beneficiary predeceases the last surviving holder of the account. Makes other changes. Amends the Financial Institutions Electronic Documents and Digital Signature Act. In provisions concerning electronic notices, provides that consent to electronic transactions given by the customer under the federal Electronic Signatures in Global and National Commerce Act satisfies applicable consent requirements. Amends the Probate Act of 1975. Provides that any person doing business or performing transactions on behalf of or at the direction of an executor or administrator with a will annexed is entitled to the presumption that the executor or administrator is lawfully authorized to conduct the business or perform the transaction as long as the person verifies that the letters testamentary or administration was issued by the court solely to the executor or administrator. Provides that if the letters testamentary or administration with the will annexed provide for co-executors or co-administrators, the person is entitled to the presumption only when the business or transaction is performed on behalf or at the direction of all listed executors or administrators in the letters. Provides that any person, corporation, or financial institution that conducts business or performs transactions on behalf of or at the direction of an executor or administrator with the will annexed is fully protected and released from liability if the person bases the presumption on the verification of the letters testamentary or administration with the will annexed.”

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill amends several Illinois statutes related to the management and disclosure of financial records by financial institutions. It updates the Illinois Banking Act, Savings Bank Act, Credit Union Act, and Trust and Payable on Death Accounts Act to clarify and expand the circumstances under which financial institutions can share customer records. This includes provisions for lawful disclosures to state or federal agencies for purposes like tax compliance and unclaimed property, as well as to law enforcement in cases of suspected fraud or exploitation. The bill also addresses the use of digital signatures and electronic records by financial institutions, providing criteria for the acceptance and validation of electronic documents and transactions. Furthermore, it establishes rules for the nomination and qualification of executors and administrators, expanding the list of eligible persons and stipulating conditions under which those with felony convictions may serve. The amendments include guarding the rights of customers to directly disclose their information and ensuring reimbursements for costs incurred by financial institutions in handling record disclosures. Effective dates have been specified for certain provisions.

The bill was sponsored by Rep. Dan Ugaste (Republican-65th District), Rep. Daniel Didech (Democrat-59th District), and Rep. Jennifer Gong-Gershowitz (Democrat-17th District), along with two other sponsors.

Bills in Illinois follow a multi-step legislative process, beginning with introduction in either the House or Senate, followed by committee review, floor debates, and votes in both chambers before reaching the governor for approval or veto. The General Assembly operates on a biennial schedule, and while typically thousands of bills are introduced each session, only a fraction successfully pass through the process to become law.

You can read more about bills and other measures here.

Walker graduated from Brown University with a BA.

Walker, a Democrat, was elected to the Illinois State Senate in 2024 to represent the state’s 27th Senate District, replacing previous state senator Ann Gillespie.

Lawmakers listed as “Not Voting” were present for the vote but did not cast a vote. Those marked as having an “Excused Absence” were not present and formally provided a reason for their absence, which was accepted.