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Public Act 102-0802


 

Public Act 0802 102ND GENERAL ASSEMBLY

  
  
  

 


 
Public Act 102-0802
 
HB5194 EnrolledLRB102 25895 BMS 35253 b

    AN ACT concerning regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 1. Short title. This Act may be cited as the
Banking Development District Act.
 
    Section 5. Definitions. As used in this Act:
    "Department" means the Department of Financial and
Professional Regulation.
    "Depository institution" means a bank, savings bank,
savings and loan association, or credit union organized or
chartered under the laws of this State or any other state or
under the laws of the United States.
    "Improvement" does not include ordinary maintenance and
repairs.
    "Local government" means a municipality, county, township,
or other unit of local government.
    "Secretary" means the Secretary of Financial and
Professional Regulation or the Secretary's designee.
    "State Treasurer" means the State Treasurer or the State
Treasurer's designee.
 
    Section 10. Banking development district program.
    (a) There is hereby created a banking development district
program, the purpose of which is to encourage the
establishment of banking branches for banking services in
geographic locations where there are the greatest underbanked
and unbanked populations. The Department shall, in
consultation with the State Treasurer, adopt rules in
accordance with the Illinois Administrative Procedure Act that
set forth the criteria for the establishment of banking
development districts.
    (b) The criteria for the establishment of banking
development districts shall include, but not be limited to,
the following:
        (1) the location, number, and proximity of sites where
    banking services are available within the district;
        (2) the identification of unmet consumer needs for
    banking services within the district;
        (3) the economic viability and unmet local credit
    needs of the community within the district;
        (4) the existing commercial development within the
    district;
        (5) the impact that additional banking services would
    have on potential economic development in the district;
    and
        (6) any other criteria that the Secretary, in
    consultation with the State Treasurer, deems appropriate.
 
    Section 15. Application.
    (a) The governing board of a local government, in
conjunction with a depository institution, may submit an
application to the Department for the designation of a banking
development district. The boundaries of the proposed banking
development district shall include property on which the
depository institution plans to make improvements to establish
a banking branch. The application shall include the legal
description of the property to be designated.
    (b) The Secretary, in consultation with the State
Treasurer, shall issue a determination on the application
within 60 days after receiving the application. If an
application is approved, the Department shall transmit
notification of the approval and a copy of all application
materials to the applicants, the Governor, the State
Comptroller, the State Treasurer, the Director of Commerce and
Economic Opportunity, the President of the Senate, the Speaker
of the House of Representatives, the Minority Leader of the
Senate, the Minority Leader of the House of Representatives,
and the clerk of the county, the municipal clerk, or the
equivalent official in which the property is located.
 
    Section 20. Existing facilities. Notwithstanding any other
provision of law, an application may be submitted by a local
government in conjunction with a depository institution that
has already opened a branch within the area of the proposed
district. In considering the criteria authorized under Section
10, the Secretary must also take into account the importance
and benefits of preserving the banking services offered by the
existing branch and the likelihood that the branch will remain
open if the application is not approved.
 
    Section 25. Deposits of public funds. When investing or
depositing State funds, the State Treasurer and local
governments may give preference to depository institutions
that have an approved banking development district
application.
 
    Section 30. Limitations. Nothing in this Act shall be
construed as authorizing the State Treasurer or local
governments to conduct an examination or investigation of a
depository institution or to receive information that is not
publicly available and the disclosure of which is otherwise
prohibited by law.
 
    Section 35. Rulemaking. In addition to such powers as may
be prescribed by this Act, the Department, in consultation
with the State Treasurer, may adopt rules consistent with the
purposes of this Act, including, but not limited to:
        (1) rules that define the terms used in this Act and as
    may be necessary and appropriate to interpret and
    implement this Act;
        (2) rules that establish fees for applications or
    other services rendered by the Department related to this
    Act; and
        (3) rules as may be necessary for the enforcement of
    this Act.
 
    Section 99. Effective date. This Act takes effect January
1, 2023.

Effective Date: 1/1/2023