Illinois General Assembly - Full Text of HB3694
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Full Text of HB3694  102nd General Assembly

HB3694 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3694

 

Introduced 2/22/2021, by Rep. Lamont J. Robinson, Jr.

 

SYNOPSIS AS INTRODUCED:
 
10100SB1608ham002, 101st G.A., Sec. 35-5
10100SB1608ham002, 101st G.A., Sec. 35-40
15 ILCS 520/16.3
30 ILCS 235/8

    Provides that if and only if Senate Bill 1608 of the 101st General Assembly, as amended by House Amendment No. 2, becomes law, then the Illinois Community Reinvestment Act, the Deposit of State Moneys Act, and the Public Funds Investment Act are amended. Excludes banks organized under the Illinois Banking Act, savings banks organized under the Savings Bank Act, and credit unions organized under the Illinois Credit Union Act from within the meaning of "covered financial institution" under the Illinois Community Reinvestment Act. Provides that when investing or depositing State or public funds, the State Treasurer or a public agency may give preference to financial institutions that are not subject to the federal Community Reinvestment Act of 1977 and are established and doing business as not-for-profit consumer owned financial cooperatives, including credit unions. Makes conforming changes. Effective immediately.


LRB102 16907 RJF 22319 b

 

 

A BILL FOR

 

HB3694LRB102 16907 RJF 22319 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. If and only if Senate Bill 1608 of the 101st
5General Assembly, as amended by House Amendment No. 2, becomes
6law, then the Illinois Community Reinvestment Act is amended
7by changing Sections 35-5 and 35-40 as follows:
 
8    (10100SB1608ham002, 101st G.A., Sec. 35-5)
9    Sec. 35-5. Definitions. As used in this Act:
10    "Covered financial institution" means a bank chartered
11under the Illinois Banking Act, a savings bank chartered under
12the Illinois Savings Bank Act, a credit union incorporated
13under the Illinois Credit Union Act, an entity licensed under
14the Illinois Residential Mortgage License Act of 1987 which
15lent or originated 50 or more residential mortgage loans in
16the previous calendar year, and any other financial service
17provider institution under the jurisdiction of the Department
18as designated by rule by the Secretary, except a bank
19organized under the Illinois Banking Act, a savings bank
20organized under the Savings Bank Act, and a credit union
21organized under the Illinois Credit Union Act.
22    "Department" means the Department of Financial and
23Professional Regulation.

 

 

HB3694- 2 -LRB102 16907 RJF 22319 b

1    "Division of Banking" means the Division of Banking within
2the Department.
3    "Division of Financial Institutions" means the Division of
4Financial Institutions within the Department.
5    "Secretary" means the Secretary of Financial and
6Professional Regulation, or his or her designee, including the
7Director of the Division of Banking or the Director of the
8Division of Financial Institutions.
9(Source: 10100SB1608ham002.)
 
10    (10100SB1608ham002, 101st G.A., Sec. 35-40)
11    Sec. 35-40. Superiority and scope of Act. To the extent
12this Act conflicts with any other State law, this Act is
13superior and supersedes those laws; provided that, nothing
14herein shall apply to any lender that is a bank, savings bank,
15savings and loan association, or credit union organized
16chartered under the laws of this State, another state, or the
17United States.
18(Source: 10100SB1608ham002.)
 
19    Section 10. If and only if Senate Bill 1608 of the 101st
20General Assembly, as amended by House Amendment No. 2, becomes
21law, then the Deposit of State Moneys Act is amended by
22changing Section 16.3 as follows:
 
23    (15 ILCS 520/16.3)

 

 

HB3694- 3 -LRB102 16907 RJF 22319 b

1    Sec. 16.3. Consideration of financial institution's
2commitment to its community.
3    (a) In addition to any other requirements of this Act, the
4State Treasurer shall consider the financial institution's
5record and current level of financial commitment to its local
6community when deciding whether to deposit State funds in that
7financial institution. The State Treasurer may consider
8factors including, but not necessarily limited to:
9        (1) for financial institutions subject to the federal
10    Community Reinvestment Act of 1977, the current and
11    historical ratings that the financial institution has
12    received, to the extent that those ratings are publicly
13    available, under the federal Community Reinvestment Act of
14    1977;
15        (2) any changes in ownership, management, policies, or
16    practices of the financial institution that may affect the
17    level of the financial institution's commitment to its
18    community;
19        (3) the financial impact that the withdrawal or denial
20    of deposits of State funds might have on the financial
21    institution; and
22        (4) the financial impact to the State as a result of
23    withdrawing State funds or refusing to deposit additional
24    State funds in the financial institution.
25    (a-5) Effective January 1, 2022, no State funds may be
26deposited in a financial institution subject to the federal

 

 

HB3694- 4 -LRB102 16907 RJF 22319 b

1Community Reinvestment Act of 1977 unless the institution has
2a current rating of satisfactory or outstanding under the
3Community Reinvestment Act of 1977.
4    (a-10) When investing or depositing State funds, the State
5Treasurer may give preference to financial institutions that
6are (i) subject to and have a current rating of outstanding
7under the federal Community Reinvestment Act of 1977; and (ii)
8not subject to the federal Community Reinvestment Act of 1977
9and are established and doing business as not-for-profit
10consumer-owned financial cooperatives, including credit
11unions.
12    (b) Nothing in this Section shall be construed as
13authorizing the State Treasurer to conduct an examination or
14investigation of a financial institution or to receive
15information that is not publicly available and the disclosure
16of which is otherwise prohibited by law.
17(Source: P.A. 93-251, eff. 7-1-04; 10100SB1608ham002.)
 
18    Section 15. If and only if Senate Bill 1608 of the 101st
19General Assembly, as amended by House Amendment No. 2, becomes
20law, then the Public Funds Investment Act is amended by
21changing Section 8 as follows:
 
22    (30 ILCS 235/8)
23    Sec. 8. Consideration of financial institution's
24commitment to its community.

 

 

HB3694- 5 -LRB102 16907 RJF 22319 b

1    (a) In addition to any other requirements of this Act, a
2public agency shall consider the financial institution's
3record and current level of financial commitment to its local
4community when deciding whether to deposit public funds in
5that financial institution. The public agency may consider
6factors including, but not necessarily limited to:
7        (1) for financial institutions subject to the federal
8    Community Reinvestment Act of 1977, the current and
9    historical ratings that the financial institution has
10    received, to the extent that those ratings are publicly
11    available, under the federal Community Reinvestment Act of
12    1977;
13        (2) any changes in ownership, management, policies, or
14    practices of the financial institution that may affect the
15    level of the financial institution's commitment to its
16    community;
17        (3) the financial impact that the withdrawal or denial
18    of deposits of public funds might have on the financial
19    institution;
20        (4) the financial impact to the public agency as a
21    result of withdrawing public funds or refusing to deposit
22    additional public funds in the financial institution; and
23        (5) any additional burden on the resources of the
24    public agency that might result from ceasing to maintain
25    deposits of public funds at the financial institution
26    under consideration.

 

 

HB3694- 6 -LRB102 16907 RJF 22319 b

1    (a-5) Effective January 1, 2022, no public funds may be
2deposited in a financial institution subject to the federal
3Community Reinvestment Act of 1977 unless the institution has
4a current rating of satisfactory or outstanding under the
5Community Reinvestment Act of 1977.
6    (a-10) When investing or depositing public funds, the
7public agency may give preference to financial institutions
8that are (i) subject to and have a current rating of
9outstanding under the federal Community Reinvestment Act of
101977; and (ii) not subject to the federal Community
11Reinvestment Act of 1977 and are established and doing
12business as not-for-profit consumer-owned financial
13cooperatives, including credit unions.
14    (b) Nothing in this Section shall be construed as
15authorizing the public agency to conduct an examination or
16investigation of a financial institution or to receive
17information that is not publicly available and the disclosure
18of which is otherwise prohibited by law.
19(Source: P.A. 93-251, eff. 7-1-04; 10100SB1608ham002.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.