Illinois House Floor Debate — April 27, 2023

"Speaker, let the record show that Representatives Burke, Will Davis, Jones, and Delgado are excused today." Speaker Hernandez, B.: "Leader Keicher is recognized to report any excused absences on the Republican side of the aisle."

"Ladies and Gentlemen, we have a special announcement. In my desk, this trophy is ours. Tuesday, 5 p.m., we will rule 10300037.docx 5  STATE OF ILLINOIS 103rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 37th Legislative Day 4/27/2023 the Senate. And it's up to every player, every player to get there early. Get your hands, get your bats, 'cause we got to beat them into submission. We won it last year, and we want to win it this year. Ladies and Gentlemen, let's send the Senate a message, they can't mess with the House." Speaker Hernandez, B.: "Representative Coffey, for what reason do you seek recognition?"

"Point of personal privilege." Speaker Hernandez, B.: "Please proceed." 10300037.docx 6  STATE OF ILLINOIS 103rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 37th Legislative Day 4/27/2023

"Thank you, Madam Speaker. I just want to take a moment to recognize the day of birth of the greatest seatmate in the history of the House of Representatives, Representative Will Guzzardi. And Representative Suzanne Ness is going to help us out, sing Happy Birthday, Will Guzzardi. So, Representative Suzanne Ness, please take it away."

"Okay. Is everybody ready? And we're going to say also happy birthday to Ann Williams tomorrow. So, Mike Coffey… okay. We'll get you all in. Ready? One, two, three. (Singing of Happy Birthday.)" Speaker Hernandez, B.: "Representative Ford, for what reason do you seek recognition?"

"Thank you, Madam Speaker. Point of personal privilege." Speaker Hernandez, B.: "Please proceed."

"It brings me great honor to bring attention to some guests that we have in the chamber on the Republican side. We have It Takes a Village. They are state partners, and they help us develop children from a very early age. We have Anita Hutchinson, and we have Nakisha Hobbs. And we also have another member of their team, and I want everyone to welcome them to the House. Thank you so very much. Please welcome them to the House of Representatives." Speaker Hernandez, B.: "Under the Order of Resolutions, we have House Resolution 233 (sic-223), offered by Representative Tipsword. Representative Tipsword is recognized."

"Thank you all. This is House Bill 3479, related to financial technology and digital currency. It's a Bill that we've discussed before but seemingly ran out of voters at the last minute." Speaker Hernandez, B.: "I apologize, Representative. We will be asking the Clerk to pull this back to Second Reading." 10300037.docx 8  STATE OF ILLINOIS 103rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 37th Legislative Day 4/27/2023

"Yes. Please… yeah."

"Floor Amendment 2 removes significant opposition, including that of credit unions, the Credit Union League. I move for its adoption. We'll discuss the Bill in total." Speaker Hernandez, B.: "Representative Walker moves the adoption of Floor Amendment #2. All those in favor say 'aye'; all those opposed say 'nay'. In the opinion of the Chair, the 'ayes' have it. And the Amendment is adopted. Any further Amendments, Mr. Clerk?"

"Thank you. This Bill has been discussed before, but it is a much better Bill now. It is about financial tech and digital currency regulation. It is a Bill that's been two years in the works, and I believe it's a… it's a great Bill. I'm going to go over… summarize some of it. First, since May 2022, the wave of bankruptcies by digital asset exchanges, brokers, and lenders and the collapse of so-called stablecoin have revealed critical need for greater financial stability in this system. If we can get can get stability within these products and these companies, we can add stability to our entire banking system and put them in a situation where they 10300037.docx 9  STATE OF ILLINOIS 103rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 37th Legislative Day 4/27/2023 don't have to be bailed out. It requires digital asset exchanges and other digital asset businesses to obtain a license from the state. It establishes consumer protection, like those we have for other financial industries that already apply to traditional services, such as disclosers, transparency, asset safeguards, and customer service standards, as well as fitness of the company so that they don't more easily go out of business and we can't find their assets. It allows the creation of trust companies for the special purpose of acting as fiduciary for customers' digital assets. That's a Bill that we passed out of this House last year, did not get taken up by the Senate. If you think about it, a trust company is the perfect place to store digital assets because it requires trustee fiduciary responsibility and beneficiary to be stated up front. And on transmitters of money across state lines, we're… have a Money Transmission Modernization Act harmonizing regulation of money transmission across state lines that multiple states have joined into. And since this is talking about that kind of transfer across state lines, multiple states have to be agreeing on what the regulations are so those companies can continue to operate. The… the purpose… for legislative intent, I've been asked to read this. It… what's happened lately is a lot of people have called us and say, 'Am I covered? Am I covered? What is this?' Well, let me… for purpose of legislative intent, does the Digital Asset Regulation Act contained in HB3479 consider credit and debit card products to be digital assets? The answer is no because debit and credit card products as we use today are used 10300037.docx 10  STATE OF ILLINOIS 103rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 37th Legislative Day 4/27/2023 instead of cash, fee at currency, i.e., currency issued by the United States Government or another government. They don't follow… fall under the definition of a digital asset. A digital asset is a digital representation of value used as a medium of exchange, year of account, or a store of value that is not fee at currency. Thus all of these high-tech product offerings that our current banks, credit unions, others offer are not part of… not covered by this Act as digital currencies because what they're doing is exchanging elements of value backed up by the United States dollar or… or other fee at currencies. The… the other reason that I… we really need to do this Bill now is that many people are both confused and there's significant losses related to these offerings because one of… in my mind, the most perverse things that happens is communities that are unbanked that do not have access to standard financial products are being solicited online. Sometimes in Spanish, sometimes in other ways, offering returns and offering guarantees that are not actually available. And there have been significant losses in the United States and in Illinois to these scammers. So, we need to do this now, and I would ask for your support. And let me just say the bulk of the… bulk of the opposition that caused this to be seriously discussed last time has been removed. Thank you." Speaker Hernandez, B.: "Representative Croke is recognized."

"Thank you, Madam Speaker. Will the Sponsor yield?" Speaker Hernandez, B.: "He indicates he will."

"Thank you, Representative Walker, for bringing this legislation forward. I know that it was a lot of various 10300037.docx 11  STATE OF ILLINOIS 103rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 37th Legislative Day 4/27/2023 negotiations and a lot of players involved. And I just wanted to clarify because I know that I've had some outreach from associations and companies. So, can you just talk a little bit more about what kind of activities would require a license under the Digital Asset Regulation Act? Specifically, I'm thinking about, you know, software developers that are consumer facing but they do not deal with financial assets or like that retail that we consider in the… in the crypto world."

"Yes, thank you for that question. As I said, this is a… this is a consumer protection Bill. This is not meant to get involved in other arenas. Thank you. We've discussed before, the primary purpose of the Digital Assets Regulation Act is to regulate financial service providers that exchange, transfer, or store digital assets on behalf of Illinois residents. In other words, if you're handling other people's money, with the first Amendment we clarified that merely developing software for this industry is not covered by this Act. The payment processors are covered by the Interstate Commerce Act. The people that do payroll processing are not covered by this Act because what they're doing is technologically moving elements of value that are backed by U.S. currency or other fee at currencies. Beyond exchanging, transferring, and storing digital assets on behalf of residents, the Act also covers digital asset administration with Illinois residents around issuing, controlling, or otherwise administering digital assets that residents engage in. So, that's the concept. That's the intent. I think that we have responded to dozens of questions pointing out to very, 10300037.docx 12  STATE OF ILLINOIS 103rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 37th Legislative Day 4/27/2023 very many operators that this Act in fact does not apply to them. It does apply to the people that we want it to apply to, which are… are digital asset actors."

"I thank you. And to the Bill. I just want to say that I think, as someone who is obviously has been very active in financial assets and kind of the crypto in legislation, that this Bill will not hinder innovation. I think that this Bill is good for the consumer and that there needs to be some sort of level of regulation in this industry. So, I… I hope everyone can get behind Representative Walker in this Bill." Speaker Hernandez, B.: "Leader Davidsmeyer is recognized."

"That's correct."

"That's correct."

"Yeah, that's correct."

"What… what will happen are really two things. This Act specifically says it can be preempted by Federal Law, unless they're… provided it's about the subject that we're talking about. It could occur in the long term that the feds regulate a significant portion of this industry. And there are a couple of things that we do for smaller entities to protect our consumers in Illinois, as we do with community banks now. But in general, as the fed takes over, we retreat."

"That's exactly right."

"Yeah, in… in Amendment 2 the… they were exempted. This is not meant to cover individuals investing on their own. Now, who they're dealing with, the exchange or the purveyor, may have to get a license. But the individual trading on their own account are simply not covered by this Act."

"This… the elements of these industries that are covered by federal regulation from the Securities and Exchange Commission or Office of the Comptroller of the Currency, for instance, they are… they are not covered by this Act because they're already regulated. The… what we're trying to do is to bring in people to identify them. And, yes, some of the elements that they have in those Acts we're trying to replicate here until these entities become regulated by the SEC. And those are things like consumer transparency, the fitness of a company. What happens when they go bankrupt? Where are the funds? All the things that companies normally have to go through when they're listed."

"I really can't… can't answer that 'cause I don't know how he's going to define that tax. I would say this is about consumer protection. I'm not going to take a position, nor… nor am I especially enamored with the idea of a transaction tax."

"Thank you. With respect, since there's no transaction tax that's been proposed, I don't know how to react to that."

"I was just going to say there's no transaction tax that's been proposed to which I can react. So, that's not… that's not about this Bill."

"I doubt it."

"Although, we could trade some projections if you'd like."

"Representative, I just heard something, and I need some help. And, Mr.… Madam Speaker, can you please lower the noise? Because this is very important. I just heard the previous speaker say something about a financial transaction tax. So, can you please explain to me what is he talking about?"

"That's going to be difficult…"

"That's not a part of this Bill?"

"…because it's not proposed."

"Pardon me."

"It is not proposed. It's not part of this Bill."

"Okay. Thank you. I was a little excited. But now I want to discuss with you about the Bill. So, this is dealing with the cryptocurrency, right?"

"It's… it's cryptocurrency plus anything else that is… that is based… on that base, yeah. There are all kinds of elements to it but cryptocurrency primarily."

"Well, I just want to say that I'm from the old school. And so, back in the day, we didn't have all this. So, I really need for you to explain to me how is it that we as the state would be able to regulate this type of currency, and it's not done on the federal level. I need to know what is… what will be the acting or the player, like the FDIC, to protect people's investment and guarantee the return for any losses? 10300037.docx 18  STATE OF ILLINOIS 103rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 37th Legislative Day 4/27/2023 And… and when you think about what's been happening with the banks when they do the stress tests for the banks and for some of those banks that we thought was okay, they were really not okay. So, I'm just wondering if you could please explain how the taxpayers of the State of Illinois will be protected and how would we be responsible for any loss that may occur since this is not FDIC."

"Yeah, this… well, those are good questions. This is not about covering losses. This is about identifying people in this industry who are not now regulated, who do things that look like they're banks, or lending companies, or transactors. They are regulated by no one. We're going to take them, identify them, have them identify themselves, and then regulate them as we do in our Department of Banking. And we regulate hundreds of institutions now at the state. But this is… it is to protect consumers for a loss. It is not an insurance process that will cover the losses. We're trying to protect it from happening in the first place."

"Okay. So, I… I have a better understanding. You're protecting the people in the state from the bad actors."

"Exactly right."

"Okay. Thank you very much. I appreciate that."

"Thank you." Speaker Hernandez, B.: "The Chair recognizes Representative Walker to close."

"I believe the time is now for this Bill. It is got a lot of pieces to it that are good for the state, good for the industry, good for the consumers. I ask for an 'aye' vote." 10300037.docx 19  STATE OF ILLINOIS 103rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 37th Legislative Day 4/27/2023 Speaker Hernandez, B.: "The question is, 'Shall House Bill 3479 pass?' All in favor vote 'aye'; all opposed vote 'nay'. The voting is open. Have all voted who wish? Have all voted who wish? Have all voted who wish? Mr. Clerk, take… please take the record. On this question, there are 90 voting in 'favor', 21 voting 'against', 0 voting 'present'. And this Bill, having received a Constitutional Majority, is hereby declared passed. Members, we will be moving towards Second Readings. Senate Bill 40, Leader Gabel. Mr. Clerk, please read the Bill."

"A point of personal privilege." Speaker Hernandez, B.: "Please proceed."

"Thank you. I just want to take a minute to introduce to the Body, I have with me Genevieve. She is a third grader from Darien. She attends Concord Elementary. She loves running and math, and she hopes to be an engineer one day. She's here with her mother, Cecelia, for Take Your Child to Work Day. So, let's welcome her." Speaker Hernandez, B.: "Representative Scherer is recognized." 10300037.docx 25  STATE OF ILLINOIS 103rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 37th Legislative Day 4/27/2023

"Thank you. Thank you, Madam Speaker. Today, I have a little girl with me. Her name is Bella Williams. She's my Page for the day. She's the daughter of Meggan Williams, who works in the Clerk's fiscal office with John Hollman. And today is Take Your Daughter to Work Day, so she's getting a little visit here on the House Floor. Let's give her a welcome." Speaker Hernandez, B.: "Leader Hernandez is recognized. Lisa Hernandez." Hernandez, L.: "Thank you, Madam Speaker. I'm just asking if the Body could give a nice warm welcome to some students from back in my district from Morton College. If you could rise, and just give them a nice warm welcome. These are students who are participating in some great programs that Morton College offers, such as ESL, adult programs, technology, citizenship. And, you know, it… it takes… I would say, 'cause I'm in that pool of folks, that it takes courage to go back to school and finish your education. Let's give these folks a nice, warm welcome." Speaker Hernandez, B.: "Mr. Clerk, Agreed Resolutions."

"Thank you so much, Madam Chair. I am standing here today to recognize House Resolution 233. This weekend is a very sorrow day for the Vietnamese American community here in Illinois and across the country. It is the… April 30 is the… 1995 is the fall of Saigon, where we had millions of folks really lost their homeland of Vietnam and we had a humanitarian crisis of over 5 thousand people who died at sea as well. So, I want to read this Resolution to really honor the contributions of the Vietnamese American community in Illinois. Now, I also want to say that it's an honor this week to serve with everyone in this House chamber. As a Vietnamese refugee who came over here from… from Vietnam and who received political asylum from the United States, it's… it's a very humbling experience to be one of the folks who were able to survive the Vietnam War and the aftermath of the war. And so, I wanted to really thank everyone in this chamber for having given me the opportunity to serve with you. I also want to thank and really pay respect to the folks who passed away in that war. We had 58 thousand U.S. soldiers pass away in that war. Young folks who went to that war to fight for democracy, human rights, and freedom. We also had 3.2 million Vietnamese folks who also died in that war as well. Three point two million Vietnamese died in the civil war. That's enough to fill 75 Chicago Bears' stadium. So, I wanted to acknowledge that fact. And I really want to, again, read this Resolution on behalf of the Vietnamese American community. House Resolution 233. WHEREAS, On April 30, 1975, Saigon, the capital of the Republic of Vietnam, popularly known as South Vietnam, was overthrown 10300037.docx 27  STATE OF ILLINOIS 103rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 37th Legislative Day 4/27/2023 by the North Vietnamese army, and the Republic of Vietnam was dissolved; and WHEREAS, Vietnamese and Americans worked together to organize the largest helicopter evacuation in history from the United States Embassy in Saigon, helping over 7,000 people, including 5,500 Vietnamese, leave within 24 hours; and WHEREAS, Further operations supported by Americans that spring, summer, and autumn helped approximately 125,000 Vietnamese refugees leave their country, and the eventual creation of a refugee program with the assistance of the United Nations helped over 500,000 Vietnamese people immigrate to the United States; and WHEREAS, Vietnamese American communities annually commemorate the Fall of Saigon, known as "Black April", in order to recognize the sacrifices of those in their communities who fought in defense of the ideals of democracy, freedom, and human rights; and WHEREAS, Over the past half century, hundreds of thousands of Vietnamese people have settled in the United States and have worked to build vibrant communities that contribute to the rich diversity of the United States; and WHEREAS, Illinois has its very own vibrant community of Vietnamese and Vietnamese Americans, including refugees who helped establish a "Little Saigon" neighborhood in a corridor along Argyle Street in Chicago's Uptown area, my district, the 13th District, building businesses and social service organizations; and WHEREAS, The Illinois community of Vietnamese and Vietnamese Americans has grown over the past half century from just 10300037.docx 28  STATE OF ILLINOIS 103rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 37th Legislative Day 4/27/2023 hundreds of people to between 30,000 and 40,000 people today; therefore, be it RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE HUNDRED THIRD GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we honor the contributions of Vietnamese and Vietnamese Americans to the United States and their values of upholding human rights, freedom, and democracy and recognize the sacrifices made in order to support these values, including losses of family, home, and life; and be it further RESOLVED, That we honor the courage, dignity, strength, and resiliency of Vietnamese refugees who were forced to flee their home to escape persecution and rebuild their lives and recognize the need to build empathy and understanding for the plight of refugees; and be it further RESOLVED, That we urge all Illinoisans to take time to learn about the history and contributions of Vietnamese and Vietnamese American people to Illinois and the United States. Thank you so much for your time. I really appreciate it." Speaker Hernandez, B.: "Representative Kifowit is recognized."

"Thank you, Madam Speaker. I want to thank the Sponsor of this Bill. As we saw last month, when we talked about our Vietnam veterans serving alongside the South Vietnamese Army and what it meant for them when we're together supporting democracy, supporting human rights, and supporting people. And then this Resolution just furthers to help us remember and to never forget that that is what our country is about, to be open arms, to take in refugees, and to be the beacon of hope and to have a just and free society for everybody, including refugees that are suffering and that are fleeing 10300037.docx 29  STATE OF ILLINOIS 103rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 37th Legislative Day 4/27/2023 persecution and unconscionable conditions. So, again, I want to thank the Sponsor for continuing to bring it to our attention, how our country, I believe the best country in the world, is standing up for all individuals of all races and everybody here for the rights and human dignity of… of our citizens and those that are coming in as well. So, thank you. And I am proud and honored to be a Sponsor on this Resolution." Speaker Hernandez, B.: "Representative Rashid, for what reason do you seek recognition?"

"A point of personal privilege." Speaker Hernandez, B.: "Please… please proceed."

"So, this is for a Resolution that's not on the board today, but I want to read it into the record because it is time sensitive, regarding Arab American Heritage Month. I just want to make sure that the time is right. Are we… are we done with the previous Resolution before I should proceed?" Speaker Hernandez, B.: "Yes, please proceed."

"Thank you. WHEREAS, It is appropriate and right to celebrate the diversity of cultures and heritages, as such celebrations serve as a reminder that, despite our differing backgrounds, everyone in Illinois is bound by a common hope for a better and more inclusive future for our children; and WHEREAS, The Arab American community has a long and integral history in the United States; and WHEREAS, Men and women of Arab descent have shared their rich culture, strong work ethic, and dedication to education, 10300037.docx 30  STATE OF ILLINOIS 103rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 37th Legislative Day 4/27/2023 while embracing the American spirit of opportunity and helping build a better State and nation for all; and WHEREAS, For over a century, Arab Americans have been making valuable contributions to every aspect of American society, including medicine, law, business, technology, government, and culture; and WHEREAS, The history of Arab Americans in American life often remains neglected and has been riddled with misunderstanding and bigotry; and WHEREAS, People of Middle Eastern descent began migrating to the United States in significant numbers in the 1800s; today, it is estimated that the current population of Arab Americans is approximately four million people; therefore, be it RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE HUNDRED THIRD GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we declare the month of April 2023 as Arab American Heritage Month in the State of Illinois; and be it further RESOLVED, That we recognize and celebrate the contributions to cultural diversity, economic growth, and the overall development of our State and nation made by the Arab American community; and be it further RESOLVED, That we encourage all Illinoisans and their families to learn about and celebrate the contributions of Arab Americans to Illinois and the United States. Thank you." Speaker Hernandez, B.: "And now, allowing perfunctory time for the Clerk, Leader Gabel moves the House stand adjourned until Tuesday, May 2, on the hour of noon. All those in favor say 'aye'; all those opposed say 'nay'. In the opinion of the Chair, the 'ayes' have it. And the House stands adjourned." 10300037.docx 31  STATE OF ILLINOIS 103rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 37th Legislative Day 4/27/2023