HB1700 EngrossedLRB104 08228 SPS 18278 b HB1700 Engrossed LRB104 08228 SPS 18278 b
HB1700 Engrossed LRB104 08228 SPS 18278 b
1 AN ACT concerning State government.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Deposit of State Moneys Act is amended by
5 changing Sections 16.1 and 16.3 as follows:
6 (15 ILCS 520/16.1) (from Ch. 130, par. 35.1)
7 Sec. 16.1. Depository reports. The State Treasurer may
8 request, at his discretion, a financial institution, as a
9 condition to serving as a State depository of public funds, to
10 submit to the State Treasurer a copy of the consolidated
11 report of condition and income required to be submitted on a
12 periodic basis to a State state or federal regulator of the
13 financial institution, and a copy of the financial
14 institution's Illinois Community Reinvestment Act statement
15 and examination, if available, and a copy of the financial
16 institution's federal Community Reinvestment Act of 1977
17 statement and examination, if available. Nothing in this
18 Section, however, shall require a financial institution to
19 submit any document or part thereof deemed to be confidential
20 by a State or federal regulator of the financial institution.
21 (Source: P.A. 87-510.)
22 (15 ILCS 520/16.3)
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1 Sec. 16.3. Consideration of financial institution's
2 commitment to its community.
3 (a) In addition to any other requirements of this Act, the
4 State Treasurer shall consider the financial institution's
5 record and current level of financial commitment to its local
6 community when deciding whether to deposit State funds in that
7 financial institution. The State Treasurer may consider
8 factors, 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 (1.5) for financial institutions subject to the
16 Illinois Community Reinvestment Act, the current and
17 historical ratings that the financial institution has
18 received under the Illinois Community Reinvestment Act, to
19 the extent that those ratings are publicly available;
20 (2) any changes in ownership, management, policies, or
21 practices of the financial institution that may affect the
22 level of the financial institution's commitment to its
23 community;
24 (3) the financial impact that the withdrawal or denial
25 of deposits of State funds might have on the financial
26 institution; and
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1 (4) the financial impact to the State as a result of
2 withdrawing State funds or refusing to deposit additional
3 State funds in the financial institution.
4 (a-5) Effective January 1, 2022, no State funds may be
5 deposited in a financial institution subject to the federal
6 Community Reinvestment Act of 1977 unless the institution has
7 a current rating of satisfactory or outstanding under the
8 Community Reinvestment Act of 1977.
9 (a-6) Effective January 1, 2026, no State funds may be
10 deposited in a financial institution subject to the Illinois
11 Community Reinvestment Act unless either (i) the institution
12 has a current rating of satisfactory or outstanding under the
13 Illinois Community Reinvestment Act at the time of deposit or
14 (ii) the Department of Financial and Professional Regulation
15 has not yet completed its initial examination of the
16 institution pursuant to the Illinois Community Reinvestment
17 Act. State funds that have been deposited may not be withdrawn
18 from a financial institution prior to the date of maturity
19 solely on the basis of a less than satisfactory rating under
20 the Illinois Community Reinvestment Act.
21 (a-10) When investing or depositing State funds, the State
22 Treasurer may give preference to financial institutions that
23 have a current rating of outstanding under the federal
24 Community Reinvestment Act of 1977 and the Illinois Community
25 Reinvestment Act.
26 (b) Nothing in this Section shall be construed as
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1 authorizing the State Treasurer to conduct an examination or
2 investigation of a financial institution or to receive
3 information that is not publicly available and the disclosure
4 of which is otherwise prohibited by law.
5 (Source: P.A. 101-657, eff. 3-23-21.)
6 Section 10. The Public Funds Investment Act is amended by
7 changing Section 8 as follows:
8 (30 ILCS 235/8)
9 Sec. 8. Consideration of financial institution's
10 commitment to its community.
11 (a) In addition to any other requirements of this Act, a
12 public agency shall consider the financial institution's
13 record and current level of financial commitment to its local
14 community when deciding whether to deposit public funds in
15 that financial institution. The public agency may consider
16 factors including, but not necessarily limited to:
17 (1) for financial institutions subject to the federal
18 Community Reinvestment Act of 1977, the current and
19 historical ratings that the financial institution has
20 received, to the extent that those ratings are publicly
21 available, under the federal Community Reinvestment Act of
22 1977;
23 (1.5) for financial institutions subject to the
24 Illinois Community Reinvestment Act, the current and
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1 historical ratings that the financial institution has
2 received under the Illinois Community Reinvestment Act, to
3 the extent that those ratings are publicly available;
4 (2) any changes in ownership, management, policies, or
5 practices of the financial institution that may affect the
6 level of the financial institution's commitment to its
7 community;
8 (3) the financial impact that the withdrawal or denial
9 of deposits of public funds might have on the financial
10 institution;
11 (4) the financial impact to the public agency as a
12 result of withdrawing public funds or refusing to deposit
13 additional public funds in the financial institution; and
14 (5) any additional burden on the resources of the
15 public agency that might result from ceasing to maintain
16 deposits of public funds at the financial institution
17 under consideration.
18 (a-5) Effective January 1, 2022, no public funds may be
19 deposited in a financial institution subject to the federal
20 Community Reinvestment Act of 1977 unless the institution has
21 a current rating of satisfactory or outstanding under the
22 Community Reinvestment Act of 1977.
23 (a-6) Effective January 1, 2026, no public funds may be
24 deposited in a financial institution subject to the Illinois
25 Community Reinvestment Act unless either (i) the institution
26 has a current rating of satisfactory or outstanding under the
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1 Illinois Community Reinvestment Act at the time of deposit or
2 (ii) the Department of Financial and Professional Regulation
3 has not yet completed its initial examination of the
4 institution pursuant to the Illinois Community Reinvestment
5 Act. Public funds that have been deposited may not be
6 withdrawn from a financial institution prior to the date of
7 maturity solely on the basis of a less than satisfactory
8 rating under the Illinois Community Reinvestment Act.
9 (a-10) When investing or depositing public funds, the
10 public agency may give preference to financial institutions
11 that have a current rating of outstanding under the federal
12 Community Reinvestment Act of 1977 and the Illinois Community
13 Reinvestment Act.
14 (b) Nothing in this Section shall be construed as
15 authorizing the public agency to conduct an examination or
16 investigation of a financial institution or to receive
17 information that is not publicly available and the disclosure
18 of which is otherwise prohibited by law.
19 (Source: P.A. 101-657, eff. 3-23-21.)
20 Section 99. Effective date. This Act takes effect January
21 1, 2026.
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