Bill Status of HB0454 100th General Assembly
Short Description: COMMUNITY BANK OF IL ACT
Rep. Mary E. Flowers - Barbara Flynn Currie - William Davis - Kelly M. Cassidy - La Shawn K. Ford
| 1/8/2019||House||Session Sine Die|
Statutes Amended In Order of Appearance
Synopsis As Introduced
Creates the Community Bank of Illinois Act. Provides that the Department of Financial and Professional Regulation shall operate The Community Bank of Illinois. Specifies the authority of the advisory board of directors to the Bank. Provides that the Secretary of Financial and Professional Regulation is to employ a president and employees. Contains provisions concerning the removal and discharge of appointees. Provides that State funds must be deposited in the Bank. Contains provisions concerning the nonliability of officers and sureties after deposit. Specifies the powers of the Bank. Contains provisions concerning the guaranty of deposits and the Bank's role as a clearinghouse, the authorization of loans the General Revenue Fund, bank loans to farmers, limitations on loans by the Bank, the name in which business is conducted and titles taken, civil actions, surety on appeal, audits, electronic fund transfer systems, confidentiality of bank records, the sale and leasing of acquired agricultural real estate, and the Illinois higher education savings plan. Provides that the Bank is the custodian of securities. Amends the Illinois State Auditing Act to require that the Auditor General must contract with an independent certified public accounting firm for an annual audit of The Community Bank of Illinois as provided in the Community Bank of Illinois Act. Amends the Eminent Domain Act to allow the Bank to acquire property by eminent domain.
| ||Fiscal Note (Financial & Professional Regulation)|
| ||The minimum capital required to operate the bank is projected at $13.6 billion (assuming a minimum of 12 percent capital to asset ratio that the Division of Banking recommends to State Chartered Banks Currently). The bank would not be FDIC insured and its deposits would be guaranteed by the full faith and credit of the State of Illinois. The Illinois Department of Financial and Professional Regulation (IDFPR) would need at least 100 new positions to the agency to operate the bank. Assuming 100 new positions with a starting salary of $70,000,00 plus benefits, HB 454 would lead to a recurring annual cost of approximately $10,739,900. A higher amount may be required after review of the business plan. This fiscal note does not include any administrative costs to operate the bank (lnformation technology support audit fees, marketing, lending and investment staff, and costs to operate facilities). For the purposes of this fiscal note, it is estimated that the expenses currently incurred by the various universities and state agencies associated with the management of locally held funds would no longer be expended by those respective agencies but would be spent instead by the Community Bank of Illinois and would therefore be revenue neutral to State government, It would require that the respective staff of those agencies be transferred to the Community Bank of Illinois.
The Illinois Department of Financial and Professional Regulation bank would be competing with the banks it regulates, thus putting the Department in conflict of interest position.