SB1932 95TH GENERAL ASSEMBLY

LRB095 18671 RCE 44763 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB1932

Introduced 1/16/2008, by Sen. Mattie Hunter

SYNOPSIS AS INTRODUCED:

15 ILCS 520/16.4 new
30 ILCS 235/6.1 new

Amends the Deposit of State Moneys Act and the Public Funds Investment Act. Requires applicant financial institutions to submit a linked deposit and public investment plan that demonstrates how it will leverage State deposits and investments to create banking, lending, and investment opportunities within low-income and moderate-income communities, particularly those near its branches, and to disclose any direct, affiliate, or subsidiary relationship with or investment in any sub-prime lending intermediary. Requires the Treasurer to give notice of applications and allow for public comment. Requires a hearing if complaints are documented. Prohibits approval of an application if complaints are substantiated. Requires linked deposit agreements and evaluations of financial institutions to be posted on the Treasurer's website.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning public funds.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Deposit of State Moneys Act is amended by adding Section 16.4 as follows:

(15 ILCS 520/16.4 new)

Sec. 16.4. Deposit and investment plans; public comment; website information.

(a) Before the State Treasurer may consider an application from a financial institution to become or continue to be a depository of State money, the financial institution must (i) submit a linked deposit and public investment plan that demonstrates how it will leverage State deposits and investments to create banking, lending, and investment opportunities within low-income and moderate-income communities, particularly those near its branches and (ii) must disclose any direct, affiliate, or subsidiary relationship with or investment in any sub-prime lending intermediary.

(b) Before the State Treasurer may approve an application from a financial institution to become or continue to be a depository of State money, the State Treasurer must give notice on the Treasurer's website and in one or more newspapers of general circulation in the applicable areas that the Treasurer proposes to approve the application after a 30-day period during which the Treasurer will receive public comments. If, within the 30-day period, objections are raised based on documented complaints of fair housing, predatory lending, disinvestment, or limited access to financial services, then the Treasurer must give adequate public notice of and hold a hearing at a location convenient to the community. If, at the public hearing, a significant complaint is substantiated, then the Treasurer shall not approve the application.

(c) The State Treasurer must post on the Treasurer's website all linked deposit agreements and evaluations of financial institutions that are depositories of State money.

Section 10. The Public Funds Investment Act is amended by adding Section 6.1 as follows:

(30 ILCS 235/6.1 new)

Sec. 6.1. Deposit and investment plans; public comment; website information.

(a) Before the State Treasurer may consider an application from a financial institution to become or continue to be an agent for the investment of public funds, the financial institution must (i) submit a linked deposit and public investment plan that demonstrates how it will leverage State deposits and investments to create banking, lending, and investment opportunities within low-income and moderate-income communities, particularly those near its branches and (ii) must disclose any direct, affiliate, or subsidiary relationship with or investment in any sub-prime lending intermediary.

(b) Before the State Treasurer may approve an application from a financial institution to become or continue to be an agent for the investment of public funds, the State Treasurer must give notice on the Treasurer's website and in one or more newspapers of general circulation in the applicable areas that the Treasurer proposes to approve the application after a 30-day period during which the Treasurer will receive public comments. If, within the 30-day period, objections are raised based on documented complaints of fair housing, predatory lending, disinvestment, or limited access to financial services, then the Treasurer must give adequate public notice of and hold a hearing at a location convenient to the community. If, at the public hearing, a significant complaint is substantiated, then the Treasurer shall not approve the application.

(c) The State Treasurer must post on the Treasurer's website all linked deposit agreements and evaluations of financial institutions that are agents for the investment of public funds.