Rep. Monique D. Davis

Filed: 3/12/2013

 

 


 

 


 
09800HB2406ham002LRB098 09262 MGM 42847 a

1
AMENDMENT TO HOUSE BILL 2406

2    AMENDMENT NO. ______. Amend House Bill 2406 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Banking Act is amended by adding
5Section 47.5 as follows:
 
6    (205 ILCS 5/47.5 new)
7    Sec. 47.5. Records and report; women-owned business,
8minority-owned business, and small business.
9    (a) The purpose of this Section is to facilitate the
10enforcement of fair lending laws and enable communities,
11governmental entities, and creditors to identify business and
12community development needs and opportunities of women-owned
13businesses, minority-owned businesses, and small businesses.
14For the purposes of this Section, "women-owned business",
15"minority-owned business", and "small business" have the
16meanings as given to those terms in the Dodd-Frank Wall Street

 

 

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1Reform and Consumer Protection Act.
2    (b) Subject to the requirements of this Section, for any
3application to a financial institution for credit, the
4financial institution shall:
5        (1) inquire whether the business is a women-owned
6    business, minority-owned business, or small business,
7    without regard to whether the application is received in
8    person, by mail, by telephone, by electronic mail or other
9    form of electronic transmission, or by any other means, and
10    whether the application is in response to a solicitation by
11    the financial institution; and
12        (2) maintain a record of the responses to the inquiries
13    separately from the application and accompanying
14    information on forms supplied by the Department.
15    Any applicant for credit may refuse to provide any
16information requested pursuant to this subsection (b) in
17connection with any application for credit.
18    (c) Where feasible, no loan underwriter or other officer or
19employee of a financial institution, or any affiliate of a
20financial institution, involved in making any determination
21concerning an application for credit shall have access to any
22information provided by the applicant pursuant to a request
23under subsection (b) in connection with an application.
24    If a financial institution determines that a loan
25underwriter or other officer, employee, or affiliate of a
26financial institution involved in making any determination

 

 

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1concerning an application for credit should have access to any
2information provided by the applicant pursuant to a request
3under subsection (b), the financial institution shall provide
4notice to the applicant of the access of the underwriter to the
5information, along with notice that the financial institution
6may not discriminate on the basis of the information.
7    (d) Each financial institution shall compile and maintain a
8record of the information provided by any loan applicant
9pursuant to a request under subsection (b) on forms supplied by
10the Department.
11    Information compiled and maintained under subsection (b)
12shall be itemized in order to clearly and conspicuously
13disclose:
14        (1) the number of the application and the date on which
15    the application was received;
16        (2) the type and purpose of the loan or other credit
17    being applied for;
18        (3) the amount of the credit or credit limit applied
19    for and the amount of the credit transaction or the credit
20    limit approved for the applicant;
21        (4) the type of action taken with respect to the
22    application and the date of the action;
23        (5) the census tract in which the principal place of
24    business of the women-owned business, minority-owned
25    business, or small business loan applicant is located;
26        (6) the gross annual revenue of the business in the

 

 

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1    last fiscal year of the women-owned business,
2    minority-owned business, or small business loan applicant
3    preceding the date of the application;
4        (7) the race, sex, and ethnicity of the principal
5    owners of the business; and
6        (8) any additional data that the Department determines
7    would aid in fulfilling the purposes of this Section.
8    (e) In compiling and maintaining any record of information
9under this Section, a financial institution shall not include
10in the record the name, specific address (other than the census
11tract required by paragraph (5) of subsection (d)), telephone
12number, electronic mail address, or any other personally
13identifiable information concerning any individual who is, or
14is connected with, the women-owned business, minority-owned
15business, or small business loan applicant.
16    (f) The data required to be compiled and maintained under
17this Section by the financial institution shall be submitted
18annually to the Department. If the financial institution has
19not received any credit applications from women-owned,
20minority-owned, or small businesses, the financial institution
21shall not be required to submit an annual report as required
22under this Section.
23    (h) The Department shall adopt rules necessary to implement
24this Section.
25    (i) This Section shall be operative only until the
26effective date of the federal regulations implementing Section

 

 

09800HB2406ham002- 5 -LRB098 09262 MGM 42847 a

11071 of the federal Dodd-Frank Wall Street Reform and Consumer
2Protection Act.
 
3    Section 10. The Illinois Credit Union Act is amended by
4adding Section 9.5 as follows:
 
5    (205 ILCS 305/9.5 new)
6    Sec. 9.5. Records and report; women-owned business,
7minority-owned business, and small business.
8    (a) The purpose of this Section is to facilitate the
9enforcement of fair lending laws and enable communities,
10governmental entities, and creditors to identify business and
11community development needs and opportunities of women-owned
12businesses, minority-owned businesses, and small businesses.
13For the purposes of this Section, "women-owned business",
14"minority-owned business", and "small business" have the
15meanings as given to those terms in the Dodd-Frank Wall Street
16Reform and Consumer Protection Act.
17    (b) Subject to the requirements of this Section, for any
18application to a credit union for credit, the credit union
19shall:
20        (1) inquire whether the business is a women-owned
21    business, minority-owned business, or small business,
22    without regard to whether the application is received in
23    person, by mail, by telephone, by electronic mail or other
24    form of electronic transmission, or by any other means, and

 

 

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1    whether the application is in response to a solicitation by
2    the credit union; and
3        (2) maintain a record of the responses to the inquiries
4    separately from the application and accompanying
5    information on forms supplied by the Department.
6    Any applicant for credit may refuse to provide any
7information requested pursuant to this subsection (b) in
8connection with any application for credit.
9    (c) Where feasible, no loan underwriter or other officer or
10employee of a credit union, or any affiliate of a credit union,
11involved in making any determination concerning an application
12for credit shall have access to any information provided by the
13applicant pursuant to a request under subsection (b) in
14connection with an application.
15    If a credit union determines that a loan underwriter or
16other officer, employee, or affiliate of a credit union
17involved in making any determination concerning an application
18for credit should have access to any information provided by
19the applicant pursuant to a request under subsection (b), the
20credit union shall provide notice to the applicant of the
21access of the underwriter to the information, along with notice
22that the credit union may not discriminate on the basis of the
23information.
24    (d) Each credit union shall compile and maintain a record
25of the information provided by any loan applicant pursuant to a
26request under subsection (b) on forms supplied by the

 

 

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1Department.
2    Information compiled and maintained under subsection (b)
3shall be itemized in order to clearly and conspicuously
4disclose:
5        (1) the number of the application and the date on which
6    the application was received;
7        (2) the type and purpose of the loan or other credit
8    being applied for;
9        (3) the amount of the credit or credit limit applied
10    for and the amount of the credit transaction or the credit
11    limit approved for the applicant;
12        (4) the type of action taken with respect to the
13    application and the date of the action;
14        (5) the census tract in which the principal place of
15    business of the women-owned business, minority-owned
16    business, or small business loan applicant is located;
17        (6) the gross annual revenue of the business in the
18    last fiscal year of the women-owned business,
19    minority-owned business, or small business loan applicant
20    preceding the date of the application;
21        (7) the race, sex, and ethnicity of the principal
22    owners of the business; and
23        (8) any additional data that the Department determines
24    would aid in fulfilling the purposes of this Section.
25    (e) In compiling and maintaining any record of information
26under this Section, a credit union shall not include in the

 

 

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1record the name, specific address (other than the census tract
2required by paragraph (5) of subsection (d)), telephone number,
3electronic mail address, or any other personally identifiable
4information concerning any individual who is, or is connected
5with, the women-owned business, minority-owned business, or
6small business loan applicant.
7    (f) The data required to be compiled and maintained under
8this Section by the credit union shall be submitted annually to
9the Department. If the credit union has not received any credit
10applications from women-owned, minority-owned, or small
11businesses, the credit union shall not be required to submit an
12annual report as required under this Section.
13    (h) The Department shall adopt rules necessary to implement
14this Section.
15    (i) This Section shall be operative only until the
16effective date of the federal regulations implementing Section
171071 of the federal Dodd-Frank Wall Street Reform and Consumer
18Protection Act.
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.".