Illinois General Assembly - Full Text of HB5194
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Full Text of HB5194  102nd General Assembly

HB5194eng 102ND GENERAL ASSEMBLY

  
  
  

 


 
HB5194 EngrossedLRB102 25895 BMS 35253 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Banking Development District Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Department" means the Department of Financial and
8Professional Regulation.
9    "Depository institution" means a bank, savings bank,
10savings and loan association, or credit union organized or
11chartered under the laws of this State or any other state or
12under the laws of the United States.
13    "Improvement" does not include ordinary maintenance and
14repairs.
15    "Local government" means a municipality, county, township,
16or other unit of local government.
17    "Secretary" means the Secretary of Financial and
18Professional Regulation or the Secretary's designee.
19    "State Treasurer" means the State Treasurer or the State
20Treasurer's designee.
 
21    Section 10. Banking development district program.
22    (a) There is hereby created a banking development district

 

 

HB5194 Engrossed- 2 -LRB102 25895 BMS 35253 b

1program, the purpose of which is to encourage the
2establishment of banking branches for banking services in
3geographic locations where there are the greatest underbanked
4and unbanked populations. The Department shall, in
5consultation with the State Treasurer, adopt rules in
6accordance with the Illinois Administrative Procedure Act that
7set forth the criteria for the establishment of banking
8development districts.
9    (b) The criteria for the establishment of banking
10development districts shall include, but not be limited to,
11the following:
12        (1) the location, number, and proximity of sites where
13    banking services are available within the district;
14        (2) the identification of unmet consumer needs for
15    banking services within the district;
16        (3) the economic viability and unmet local credit
17    needs of the community within the district;
18        (4) the existing commercial development within the
19    district;
20        (5) the impact that additional banking services would
21    have on potential economic development in the district;
22    and
23        (6) any other criteria that the Secretary, in
24    consultation with the State Treasurer, deems appropriate.
 
25    Section 15. Application.

 

 

HB5194 Engrossed- 3 -LRB102 25895 BMS 35253 b

1    (a) The governing board of a local government, in
2conjunction with a depository institution, may submit an
3application to the Department for the designation of a banking
4development district. The boundaries of the proposed banking
5development district shall include property on which the
6depository institution plans to make improvements to establish
7a banking branch. The application shall include the legal
8description of the property to be designated.
9    (b) The Secretary, in consultation with the State
10Treasurer, shall issue a determination on the application
11within 60 days after receiving the application. If an
12application is approved, the Department shall transmit
13notification of the approval and a copy of all application
14materials to the applicants, the Governor, the State
15Comptroller, the State Treasurer, the Director of Commerce and
16Economic Opportunity, the President of the Senate, the Speaker
17of the House of Representatives, the Minority Leader of the
18Senate, the Minority Leader of the House of Representatives,
19and the clerk of the county, the municipal clerk, or the
20equivalent official in which the property is located.
 
21    Section 20. Existing facilities. Notwithstanding any other
22provision of law, an application may be submitted by a local
23government in conjunction with a depository institution that
24has already opened a branch within the area of the proposed
25district. In considering the criteria authorized under Section

 

 

HB5194 Engrossed- 4 -LRB102 25895 BMS 35253 b

110, the Secretary must also take into account the importance
2and benefits of preserving the banking services offered by the
3existing branch and the likelihood that the branch will remain
4open if the application is not approved.
 
5    Section 25. Deposits of public funds. When investing or
6depositing State funds, the State Treasurer and local
7governments may give preference to depository institutions
8that have an approved banking development district
9application.
 
10    Section 30. Limitations. Nothing in this Act shall be
11construed as authorizing the State Treasurer or local
12governments to conduct an examination or investigation of a
13depository institution or to receive information that is not
14publicly available and the disclosure of which is otherwise
15prohibited by law.
 
16    Section 35. Rulemaking. In addition to such powers as may
17be prescribed by this Act, the Department, in consultation
18with the State Treasurer, may adopt rules consistent with the
19purposes of this Act, including, but not limited to:
20        (1) rules that define the terms used in this Act and as
21    may be necessary and appropriate to interpret and
22    implement this Act;
23        (2) rules that establish fees for applications or

 

 

HB5194 Engrossed- 5 -LRB102 25895 BMS 35253 b

1    other services rendered by the Department related to this
2    Act; and
3        (3) rules as may be necessary for the enforcement of
4    this Act.
 
5    Section 99. Effective date. This Act takes effect January
61, 2023.