IL HB1572

Amends the Illinois Credit Union Act to reform the civil penalty assessment process for credit unions, requiring the Secretary to make reasonable determinations based on objective facts before imposing penalties.

Establishes that civil penalties can only be assessed when violations or unsafe practices directly result in substantial and material financial loss (at least 1% of total assets or gross income for the preceding 12 months) or constitute willful misconduct or material breach of fiduciary duty.

Requires credit unions to receive written notice of specific violations and a reasonable cure period to take remedial action before a civil penalty is imposed.

Sets maximum civil penalty amounts based on credit union asset size, ranging from $1,000 for institutions with assets under $10 million to $50,000 for those with $1 billion or more in assets.

Specifies that civil penalties are remedial rather than punitive, and allows credit unions to request a hearing within 90 days to stay the penalty order until a final administrative decision is issued.