Illinois 2025-2026 Regular Session

Illinois House Bill HB3560 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3560 Introduced , by Rep. Kevin John Olickal SYNOPSIS AS INTRODUCED: New Act Creates the Public Banking Option Act. Establishes the Illinois Bank Account Board under the Department of Financial and Professional Regulation for the purpose of protecting consumers who lack access to traditional banking services from predatory, discriminatory, and costly alternatives. Sets forth provisions concerning the actions required by the Board to create the Illinois Bank Account Program, including establishing a process by which an individual may open an Illinois Bank Account, which shall be designed to maximize Program participation; the mechanisms by which an account holder may deposit funds into an Illinois Bank Account for no fee; a process through which an account holder may elect to have a portion, up to the entirety, of the account holder's paycheck or earnings due for labor or services performed directly deposited by electronic fund transfer into the account holder's Illinois Bank Account; a process through which employers and hiring entities shall be required to remit through a payroll direct deposit arrangement each worker's elected payroll contribution to the worker's Illinois Bank Account in accordance with the worker's election; and mechanisms by which an account holder can withdraw funds from an Illinois Bank Account using an Illinois Bank Account debit card for no fee; a process, available to all account holders for no fee, through which an account holder may arrange for payment to a registered payee using a preauthorized electronic fund transfer from an Illinois Bank Account; a process and terms and conditions for becoming a registered payee; voluntary automatic disbursement rules to assist an account holder in managing automated payments to registered payees based on the availability of funds in the account holder's account; and other specified actions. Establishes duties concerning the Program for employers with more than 25 employees, hiring entities with more than 25 independent contractors performing the same or similar labor or service, and landlords or a landlord's agent. Grants the Department rulemaking authority to implement the provisions of the Act. Effective immediately. LRB104 10432 BAB 20507 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3560 Introduced , by Rep. Kevin John Olickal SYNOPSIS AS INTRODUCED: New Act New Act Creates the Public Banking Option Act. Establishes the Illinois Bank Account Board under the Department of Financial and Professional Regulation for the purpose of protecting consumers who lack access to traditional banking services from predatory, discriminatory, and costly alternatives. Sets forth provisions concerning the actions required by the Board to create the Illinois Bank Account Program, including establishing a process by which an individual may open an Illinois Bank Account, which shall be designed to maximize Program participation; the mechanisms by which an account holder may deposit funds into an Illinois Bank Account for no fee; a process through which an account holder may elect to have a portion, up to the entirety, of the account holder's paycheck or earnings due for labor or services performed directly deposited by electronic fund transfer into the account holder's Illinois Bank Account; a process through which employers and hiring entities shall be required to remit through a payroll direct deposit arrangement each worker's elected payroll contribution to the worker's Illinois Bank Account in accordance with the worker's election; and mechanisms by which an account holder can withdraw funds from an Illinois Bank Account using an Illinois Bank Account debit card for no fee; a process, available to all account holders for no fee, through which an account holder may arrange for payment to a registered payee using a preauthorized electronic fund transfer from an Illinois Bank Account; a process and terms and conditions for becoming a registered payee; voluntary automatic disbursement rules to assist an account holder in managing automated payments to registered payees based on the availability of funds in the account holder's account; and other specified actions. Establishes duties concerning the Program for employers with more than 25 employees, hiring entities with more than 25 independent contractors performing the same or similar labor or service, and landlords or a landlord's agent. Grants the Department rulemaking authority to implement the provisions of the Act. Effective immediately. LRB104 10432 BAB 20507 b LRB104 10432 BAB 20507 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3560 Introduced , by Rep. Kevin John Olickal SYNOPSIS AS INTRODUCED:
3	3	New Act New Act
4	4	New Act
5	5	Creates the Public Banking Option Act. Establishes the Illinois Bank Account Board under the Department of Financial and Professional Regulation for the purpose of protecting consumers who lack access to traditional banking services from predatory, discriminatory, and costly alternatives. Sets forth provisions concerning the actions required by the Board to create the Illinois Bank Account Program, including establishing a process by which an individual may open an Illinois Bank Account, which shall be designed to maximize Program participation; the mechanisms by which an account holder may deposit funds into an Illinois Bank Account for no fee; a process through which an account holder may elect to have a portion, up to the entirety, of the account holder's paycheck or earnings due for labor or services performed directly deposited by electronic fund transfer into the account holder's Illinois Bank Account; a process through which employers and hiring entities shall be required to remit through a payroll direct deposit arrangement each worker's elected payroll contribution to the worker's Illinois Bank Account in accordance with the worker's election; and mechanisms by which an account holder can withdraw funds from an Illinois Bank Account using an Illinois Bank Account debit card for no fee; a process, available to all account holders for no fee, through which an account holder may arrange for payment to a registered payee using a preauthorized electronic fund transfer from an Illinois Bank Account; a process and terms and conditions for becoming a registered payee; voluntary automatic disbursement rules to assist an account holder in managing automated payments to registered payees based on the availability of funds in the account holder's account; and other specified actions. Establishes duties concerning the Program for employers with more than 25 employees, hiring entities with more than 25 independent contractors performing the same or similar labor or service, and landlords or a landlord's agent. Grants the Department rulemaking authority to implement the provisions of the Act. Effective immediately.
6	6	LRB104 10432 BAB 20507 b LRB104 10432 BAB 20507 b
7	7	LRB104 10432 BAB 20507 b
8	8	A BILL FOR
9	9	HB3560LRB104 10432 BAB 20507 b HB3560 LRB104 10432 BAB 20507 b
10	10	HB3560 LRB104 10432 BAB 20507 b
11	11	1 AN ACT concerning regulation.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 1. Short title. This Act may be cited as the Public
15	15	5 Banking Option Act.
16	16	6 Section 2. Findings. The General Assembly finds that:
17	17	7 (1) Due to high unemployment rates, homelessness
18	18	8 rising, and an unprecedented wave of evictions looming as
19	19	9 a result of the COVID-19 pandemic, the financial stability
20	20	10 of the State's most vulnerable residents has become a
21	21	11 matter of particularly urgent concern, not only to those
22	22	12 individuals, themselves, but to the economic health of the
23	23	13 State as a whole.
24	24	14 (2) Access to basic financial services, including
25	25	15 demand deposit (checking) and savings accounts, is a
26	26	16 critical component of financial stability. 1/5 of Illinois
27	27	17 households are unbanked or underbanked. Underbanked
28	28	18 households are defined as those that have a bank account
29	29	19 but have used alternative financial services (AFS) for
30	30	20 transactions, including check cashing and money orders,
31	31	21 and for credit, including payday loans. Among underbanked
32	32	22 households, AFS transaction use is 3 times more prevalent
33	33	23 than the use of AFS for credit. Around 17% of United States
34	34
35	35
36	36
37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3560 Introduced , by Rep. Kevin John Olickal SYNOPSIS AS INTRODUCED:
38	38	New Act New Act
39	39	New Act
40	40	Creates the Public Banking Option Act. Establishes the Illinois Bank Account Board under the Department of Financial and Professional Regulation for the purpose of protecting consumers who lack access to traditional banking services from predatory, discriminatory, and costly alternatives. Sets forth provisions concerning the actions required by the Board to create the Illinois Bank Account Program, including establishing a process by which an individual may open an Illinois Bank Account, which shall be designed to maximize Program participation; the mechanisms by which an account holder may deposit funds into an Illinois Bank Account for no fee; a process through which an account holder may elect to have a portion, up to the entirety, of the account holder's paycheck or earnings due for labor or services performed directly deposited by electronic fund transfer into the account holder's Illinois Bank Account; a process through which employers and hiring entities shall be required to remit through a payroll direct deposit arrangement each worker's elected payroll contribution to the worker's Illinois Bank Account in accordance with the worker's election; and mechanisms by which an account holder can withdraw funds from an Illinois Bank Account using an Illinois Bank Account debit card for no fee; a process, available to all account holders for no fee, through which an account holder may arrange for payment to a registered payee using a preauthorized electronic fund transfer from an Illinois Bank Account; a process and terms and conditions for becoming a registered payee; voluntary automatic disbursement rules to assist an account holder in managing automated payments to registered payees based on the availability of funds in the account holder's account; and other specified actions. Establishes duties concerning the Program for employers with more than 25 employees, hiring entities with more than 25 independent contractors performing the same or similar labor or service, and landlords or a landlord's agent. Grants the Department rulemaking authority to implement the provisions of the Act. Effective immediately.
41	41	LRB104 10432 BAB 20507 b LRB104 10432 BAB 20507 b
42	42	LRB104 10432 BAB 20507 b
43	43	A BILL FOR
44	44
45	45
46	46
47	47
48	48
49	49	New Act
50	50
51	51
52	52
53	53	LRB104 10432 BAB 20507 b
54	54
55	55
56	56
57	57
58	58
59	59
60	60
61	61
62	62
63	63	HB3560 LRB104 10432 BAB 20507 b
64	64
65	65
66	66	HB3560- 2 -LRB104 10432 BAB 20507 b HB3560 - 2 - LRB104 10432 BAB 20507 b
67	67	HB3560 - 2 - LRB104 10432 BAB 20507 b
68	68	1 households use AFS transactions. These transaction
69	69	2 services can be a significant expense for low-income
70	70	3 Illinoisans. For example, check cashers charge as much as
71	71	4 10% of the cost of the check being cashed. In 2018, AFS
72	72	5 costs for unbanked and underbanked Americans totaled
73	73	6 $189,000,000,000 in fees and interest, which means the
74	74	7 average annual cost per person for using AFS was $3,000.
75	75	8 (3) Predatory banking practices, including expensive
76	76	9 overdraft fees, create a vicious cycle leading to the
77	77	10 lasting exclusion of Illinois residents from traditional
78	78	11 and affordable financial services and disproportionately
79	79	12 harm low-income people and people of color. Banking
80	80	13 options that target the poor generate significant revenue
81	81	14 through these exploitative practices. In 2019, 84% of
82	82	15 those fees were paid by 9% of account holders, and those
83	83	16 customers typically carried low balances averaging less
84	84	17 than $350.
85	85	18 (4) Unbanked households pay proportionally more for
86	86	19 their financial services, lack secure means of saving,
87	87	20 have fewer opportunities to build credit, and are rejected
88	88	21 for loans at far higher rates. Basic financial
89	89	22 transactions, including the payment of rent, utilities,
90	90	23 and other recurring bills or charitable contributions, are
91	91	24 a particularly formidable challenge for households lacking
92	92	25 access to important tools, including automated bill pay,
93	93	26 or whose monthly income fluctuates too much to make
94	94
95	95
96	96
97	97
98	98
99	99	HB3560 - 2 - LRB104 10432 BAB 20507 b
100	100
101	101
102	102	HB3560- 3 -LRB104 10432 BAB 20507 b HB3560 - 3 - LRB104 10432 BAB 20507 b
103	103	HB3560 - 3 - LRB104 10432 BAB 20507 b
104	104	1 automated processes viable. Because they have fewer
105	105	2 options when their money runs short, unbanked households
106	106	3 face a far more destructive cycle of punitive action when
107	107	4 they default on their recurring bills, which leads to
108	108	5 compounding interest and further debt. For all these
109	109	6 reasons, exclusion from traditional financial services
110	110	7 significantly increases the risk of poverty and
111	111	8 homelessness and places an unnecessary burden on the
112	112	9 entire economy.
113	113	10 (5) Limited access to affordable financial services is
114	114	11 a problem that disproportionately impacts low-income
115	115	12 communities and communities of color. The racial disparity
116	116	13 in banking access in Illinois is stark. The most recent
117	117	14 5-year estimate from 2017 through 2021 shows 2.4% of white
118	118	15 households were unbanked, whereas 20.4% of black
119	119	16 households were unbanked. Hispanic households face similar
120	120	17 disparities, with 10.9% of Hispanic households unbanked.
121	121	18 Despite improvements as Illinosians recover from the
122	122	19 pandemic, the racial gap remains pronounced, with black
123	123	20 households having a significantly higher unbanked rate
124	124	21 than their white counterparts. In Chicago, where the
125	125	22 disparities are amplified, the number of unbanked white
126	126	23 households held evenly with the rate across the State at
127	127	24 2.5% while black households maintained a persistently high
128	128	25 23.7% unbanked rate.
129	129	26 (6) Providing Illinois residents with a zero-fee,
130	130
131	131
132	132
133	133
134	134
135	135	HB3560 - 3 - LRB104 10432 BAB 20507 b
136	136
137	137
138	138	HB3560- 4 -LRB104 10432 BAB 20507 b HB3560 - 4 - LRB104 10432 BAB 20507 b
139	139	HB3560 - 4 - LRB104 10432 BAB 20507 b
140	140	1 zero-penalty, zero-minimum-balance requirement public
141	141	2 option for basic financial services would empower
142	142	3 Illinoisans by providing a stable, affordable financial
143	143	4 platform for all Illinois residents, especially the
144	144	5 unbanked and underbanked who currently rely on expensive
145	145	6 AFS transactions. The Illinois Bank Account Program would
146	146	7 mitigate the demand for exploitative alternatives to
147	147	8 banking services with respect to which upselling and
148	148	9 cross-selling into expensive accounts and products is the
149	149	10 norm. A market analysis of the proposed Illinois Bank
150	150	11 Account Program and any modifications that may be
151	151	12 necessary for its successful and cost-effective
152	152	13 implementation will enhance the State's ability to serve
153	153	14 the financial services needs of unbanked and underbanked
154	154	15 Illinois residents.
155	155	16 Section 5. Definitions. As used in this Act:
156	156	17 "Board" means the Illinois Bank Account Board created
157	157	18 under this Act.
158	158	19 "Department" means the Department of Financial and
159	159	20 Professional Regulation.
160	160	21 "Electronic fund transfer" means a transfer of funds,
161	161	22 other than a transaction originated by check, draft, or
162	162	23 similar paper instrument, that is initiated through an
163	163	24 electronic device for the purpose of ordering, instructing, or
164	164	25 authorizing a financial institution to debit or credit an
165	165
166	166
167	167
168	168
169	169
170	170	HB3560 - 4 - LRB104 10432 BAB 20507 b
171	171
172	172
173	173	HB3560- 5 -LRB104 10432 BAB 20507 b HB3560 - 5 - LRB104 10432 BAB 20507 b
174	174	HB3560 - 5 - LRB104 10432 BAB 20507 b
175	175	1 account.
176	176	2 "Financial institution" means any bank subject to the
177	177	3 Illinois Banking Act, including a branch of an out-of-state
178	178	4 bank as defined in Section 2 of the Illinois Banking Act, any
179	179	5 savings bank subject to the Savings Bank Act, and any
180	180	6 federally chartered commercial bank, savings bank, or savings
181	181	7 and loan association organized and operated in this State
182	182	8 under the laws of the United States.
183	183	9 "Illinois Bank Account" means a bank account opened
184	184	10 through a process established by the Illinois Bank Account
185	185	11 Board.
186	186	12 "Program" means the Illinois Bank Account Program created
187	187	13 under this Act.
188	188	14 Section 10. The Illinois Bank Account Board.
189	189	15 (a) The Illinois Bank Account Board is established by the
190	190	16 Department for the purpose of protecting consumers who lack
191	191	17 access to traditional banking services from predatory,
192	192	18 discriminatory, and costly alternatives and to administer the
193	193	19 Illinois Bank Account Program.
194	194	20 (b) The Board shall consist of all the following members:
195	195	21 (1) The State Treasurer or the State Treasurer's
196	196	22 designee.
197	197	23 (2) The Secretary of Financial and Professional
198	198	24 Regulation or the Secretary's designee.
199	199	25 (3) An individual with banking expertise, particularly
200	200
201	201
202	202
203	203
204	204
205	205	HB3560 - 5 - LRB104 10432 BAB 20507 b
206	206
207	207
208	208	HB3560- 6 -LRB104 10432 BAB 20507 b HB3560 - 6 - LRB104 10432 BAB 20507 b
209	209	HB3560 - 6 - LRB104 10432 BAB 20507 b
210	210	1 expertise in transaction accounts and debit cards,
211	211	2 appointed by the President of the Senate.
212	212	3 (4) An individual with expertise in economic and
213	213	4 racial justice and cultural competence appointed by the
214	214	5 Speaker of the House of Representatives.
215	215	6 (5) An employee representative appointed by the
216	216	7 Governor.
217	217	8 (6) An individual with expertise in banking or
218	218	9 consumer financial services affiliated with an academic
219	219	10 institution appointed by the Governor.
220	220	11 (7) An individual with banking expertise appointed by
221	221	12 the Governor.
222	222	13 (8) A public banking advocate appointed by the Senate
223	223	14 President.
224	224	15 (9) A consumer representative or advocate with
225	225	16 expertise in banking access and financial empowerment,
226	226	17 including within historically unbanked and underbanked
227	227	18 communities, appointed by the Speaker of the House.
228	228	19 (c) In making appointments to the Board, the appointing
229	229	20 authorities shall take into consideration the cultural,
230	230	21 ethnic, and geographic diversity of the State so that the
231	231	22 Board's composition reflects the communities of Illinois.
232	232	23 (d)(1) Except as provided in paragraph (2), members of the
233	233	24 Board shall serve without compensation.
234	234	25 (2) Subject to appropriation, members of the Board
235	235	26 shall be reimbursed for necessary travel expenses incurred
236	236
237	237
238	238
239	239
240	240
241	241	HB3560 - 6 - LRB104 10432 BAB 20507 b
242	242
243	243
244	244	HB3560- 7 -LRB104 10432 BAB 20507 b HB3560 - 7 - LRB104 10432 BAB 20507 b
245	245	HB3560 - 7 - LRB104 10432 BAB 20507 b
246	246	1 in connection with their Board duties.
247	247	2 (e)(1) Except for the members described in paragraphs (3)
248	248	3 and (9) of subsection (a), a Board member, or State
249	249	4 Treasurer's staff working with the Board, while serving in
250	250	5 that capacity shall not have a direct or indirect investment
251	251	6 or ownership interest in or be employed by, a consultant to, a
252	252	7 member of the Board of directors of, affiliated with, or
253	253	8 otherwise a representative of, a private bank or financial
254	254	9 services institution unless that position is an unpaid
255	255	10 volunteer position.
256	256	11 (2) The restrictions in paragraph (1) do not include
257	257	12 ownership of a share of a diversified mutual fund or
258	258	13 exchange-traded fund that holds shares of a private bank
259	259	14 or financial services institution.
260	260	15 (f) To the extent the State, to successfully implement the
261	261	16 Illinois Bank Account Program, contracts with entities to
262	262	17 provide administrative and financial services, the State has a
263	263	18 proprietary interest in ensuring that the entities with which
264	264	19 it contracts have not engaged in conduct that would undermine
265	265	20 the goals, efficiency, and reputation of the Illinois Bank
266	266	21 Account Program, including, but not limited to, by violating
267	267	22 banking, consumer protection, fair lending, or fair housing
268	268	23 laws.
269	269	24 Section 15. The Illinois Bank Account Program. The
270	270	25 Illinois Bank Account Program is hereby created to offer
271	271
272	272
273	273
274	274
275	275
276	276	HB3560 - 7 - LRB104 10432 BAB 20507 b
277	277
278	278
279	279	HB3560- 8 -LRB104 10432 BAB 20507 b HB3560 - 8 - LRB104 10432 BAB 20507 b
280	280	HB3560 - 8 - LRB104 10432 BAB 20507 b
281	281	1 Illinoisans access to a voluntary, zero-fee, zero-penalty,
282	282	2 federally insured transaction account and related payment
283	283	3 services at no cost to account holders, including robust and
284	284	4 geographically diverse mechanisms for accessing account funds
285	285	5 and account management tools that facilitate the automation of
286	286	6 basic financial transactions designed to serve the needs of
287	287	7 individuals with low or fluctuating income. To administer the
288	288	8 Program, the Board shall establish within 12 months of
289	289	9 seating:
290	290	10 (1) A process by which an individual may open an
291	291	11 Illinois Bank Account, which shall be designed to maximize
292	292	12 Program participation.
293	293	13 (2) The mechanisms by which an account holder may
294	294	14 deposit funds into an Illinois Bank Account for no fee,
295	295	15 which mechanisms shall include, but not be limited to,
296	296	16 electronic fund transfers arranged through an employer's
297	297	17 or hiring entity's payroll direct deposit arrangement and
298	298	18 cash loading through in-network partners.
299	299	19 (3) A process through which an account holder may
300	300	20 elect to have a portion, up to the entirety, of the account
301	301	21 holder's paycheck or earnings due for labor or services
302	302	22 performed directly deposited by electronic fund transfer
303	303	23 into the account holder's Illinois Bank Account.
304	304	24 (4) A process through which employers and hiring
305	305	25 entities shall be required to remit through a payroll
306	306	26 direct deposit arrangement each worker's elected payroll
307	307
308	308
309	309
310	310
311	311
312	312	HB3560 - 8 - LRB104 10432 BAB 20507 b
313	313
314	314
315	315	HB3560- 9 -LRB104 10432 BAB 20507 b HB3560 - 9 - LRB104 10432 BAB 20507 b
316	316	HB3560 - 9 - LRB104 10432 BAB 20507 b
317	317	1 contribution to the worker's Illinois Bank Account in
318	318	2 accordance with the worker's election.
319	319	3 (5) Mechanisms by which an account holder can withdraw
320	320	4 funds from an Illinois Bank Account using an Illinois Bank
321	321	5 Account debit card for no fee, which mechanisms shall
322	322	6 include, but not be limited to, withdrawals through
323	323	7 point-of-sale purchases using an Illinois Bank Account
324	324	8 debit card and through cash withdrawals at a robust and
325	325	9 geographically expansive network of participating ATMs,
326	326	10 bank or credit union branches, and other in-network
327	327	11 partners of designated financial institution partners.
328	328	12 (6) A process, available to all account holders for no
329	329	13 fee, through which an account holder may arrange for
330	330	14 payment to a registered payee using a preauthorized
331	331	15 electronic fund transfer from an Illinois Bank Account.
332	332	16 (7) A process and terms and conditions for becoming a
333	333	17 registered payee, which shall, at a minimum, require the
334	334	18 payee's agreement to specified terms and conditions to be
335	335	19 established by the Board in exchange for the benefits of
336	336	20 transparency and accountability afforded by participation
337	337	21 in an automated payment system and which shall be designed
338	338	22 to incentivize account holders' preauthorized electronic
339	339	23 fund transfers to registered payees and application of
340	340	24 voluntary automatic disbursement rules by limiting the
341	341	25 late payment fees and penalties that registered payees can
342	342	26 impose on account holders who pay them using preauthorized
343	343
344	344
345	345
346	346
347	347
348	348	HB3560 - 9 - LRB104 10432 BAB 20507 b
349	349
350	350
351	351	HB3560- 10 -LRB104 10432 BAB 20507 b HB3560 - 10 - LRB104 10432 BAB 20507 b
352	352	HB3560 - 10 - LRB104 10432 BAB 20507 b
353	353	1 electronic fund transfers from the account holders'
354	354	2 Illinois Bank Accounts.
355	355	3 (8) Voluntary automatic disbursement rules to assist
356	356	4 an account holder in managing automated payments to
357	357	5 registered payees based on the availability of funds in
358	358	6 the account holder's account, which an account holder may
359	359	7 voluntarily elect to apply or to stop applying to the
360	360	8 account holder's Illinois Bank Account at any time, and
361	361	9 which shall be designed to maximize consumer protection
362	362	10 and may include, but not be limited to, rules governing
363	363	11 the prioritization and timing of payments, rules limiting
364	364	12 payments to a percentage of funds available in the
365	365	13 Illinois Bank Account, and rules limiting disbursement to
366	366	14 designated registered payees only upon satisfaction of
367	367	15 specified conditions of the Illinois Bank Account.
368	368	16 (9) The following enrollment processes: (i)
369	369	17 facilitating the opening of an Illinois Bank Account by
370	370	18 individuals who may not have federal or State
371	371	19 government-issued photo identification while taking all
372	372	20 reasonable steps to maintain the confidentiality of
373	373	21 personal information consistent with all applicable law;
374	374	22 (ii) designing and establishing rules governing the
375	375	23 enrollment and participation in the Program of individuals
376	376	24 who do not have permanent housing; and (iii) optionally
377	377	25 designing and establishing rules governing the enrollment
378	378	26 and participation in the Program of individuals who are
379	379
380	380
381	381
382	382
383	383
384	384	HB3560 - 10 - LRB104 10432 BAB 20507 b
385	385
386	386
387	387	HB3560- 11 -LRB104 10432 BAB 20507 b HB3560 - 11 - LRB104 10432 BAB 20507 b
388	388	HB3560 - 11 - LRB104 10432 BAB 20507 b
389	389	1 under 18 years of age, including rules governing the
390	390	2 opening of an Illinois Bank Account by a person who is at
391	391	3 least 14 years of age without a co-signer or guarantor on
392	392	4 the account consistent with all applicable law.
393	393	5 (10) Select a Program administrator, which may consist
394	394	6 of one or more contractors or Program staff or a
395	395	7 combination, whose duties shall include, but not be
396	396	8 limited to, all of the following:
397	397	9 (A) Providing a secure Internet web-based portal
398	398	10 and mobile application through which individuals can
399	399	11 enroll in the Program and entities can become
400	400	12 registered payees and through which account holders
401	401	13 can access and manage the account holders' Illinois
402	402	14 Bank Accounts, including direct deposits,
403	403	15 preauthorized electronic fund transfers to registered
404	404	16 payees, and automatic disbursement rule elections.
405	405	17 (B) Providing a method that enables employers and
406	406	18 hiring entities to remit each worker participant's
407	407	19 elected direct deposit payroll contribution to the
408	408	20 worker's Illinois Bank Account in accordance with the
409	409	21 worker's election.
410	410	22 (C) Facilitating enrollment of account holders in
411	411	23 the Program through coordination with government,
412	412	24 employers and hiring entities, and nonprofit partners.
413	413	25 (D) Facilitating and managing connectivity with
414	414	26 other State and local government programs providing
415	415
416	416
417	417
418	418
419	419
420	420	HB3560 - 11 - LRB104 10432 BAB 20507 b
421	421
422	422
423	423	HB3560- 12 -LRB104 10432 BAB 20507 b HB3560 - 12 - LRB104 10432 BAB 20507 b
424	424	HB3560 - 12 - LRB104 10432 BAB 20507 b
425	425	1 individuals with financial accounts to enable Program
426	426	2 account holders to transfer funds between their
427	427	3 Illinois Bank Accounts and their other State-managed
428	428	4 or locally managed accounts, as authorized by the
429	429	5 Board and in accordance with all applicable laws and
430	430	6 regulations.
431	431	7 (E) Facilitating and managing connectivity with
432	432	8 other State and local government agencies and entities
433	433	9 to enable and streamline remittance of local, State,
434	434	10 and federal benefit and public assistance payments and
435	435	11 other disbursements to account holders who are
436	436	12 entitled to those payments and who authorize those
437	437	13 payments to be directly deposited by electronic fund
438	438	14 transfer into an Illinois Bank Account, as authorized
439	439	15 by the Board and in accordance with all applicable
440	440	16 laws and regulations.
441	441	17 (11) Contract with a financial services network
442	442	18 administrator whose duties may include, but not be limited
443	443	19 to, all of the following:
444	444	20 (A) Contracting with, managing, and coordinating
445	445	21 the financial services vendors for the Program that
446	446	22 shall provide account holders access to their Illinois
447	447	23 Bank Accounts and services provided in concert with at
448	448	24 least one qualifying participating depository
449	449	25 financial institution that meets the requirements
450	450	26 established by the Board.
451	451
452	452
453	453
454	454
455	455
456	456	HB3560 - 12 - LRB104 10432 BAB 20507 b
457	457
458	458
459	459	HB3560- 13 -LRB104 10432 BAB 20507 b HB3560 - 13 - LRB104 10432 BAB 20507 b
460	460	HB3560 - 13 - LRB104 10432 BAB 20507 b
461	461	1 (B) Adding additional participating depository
462	462	2 financial institutions meeting the requirements
463	463	3 established by the Board, especially including
464	464	4 qualifying credit unions and other local financial
465	465	5 institutions, as Program scope and scale permits, in
466	466	6 accordance with the Board's specifications as set
467	467	7 forth in the contract between the Board and the
468	468	8 financial services network administrator.
469	469	9 (C) Issuing to each account holder a secure debit
470	470	10 card, or other secure means of access to the account
471	471	11 holder's Illinois Bank Account, which shall use
472	472	12 current security and anti-fraud technology consistent
473	473	13 with industry standards.
474	474	14 (D) Providing a robust and geographically
475	475	15 expansive financial services network of partners
476	476	16 through which an account holder can load or withdraw
477	477	17 funds from an Illinois Bank Account using an Illinois
478	478	18 Bank Account debit card, or other secure means of
479	479	19 access to an Illinois Bank Account, for no fee,
480	480	20 including ATMs, bank or credit union branches, and
481	481	21 other in-network partners; minimize or eliminate
482	482	22 out-of-network fees for account holders; and ensure
483	483	23 that account holders are not charged out-of-network
484	484	24 fees that are not reasonable and actually incurred by
485	485	25 the Program vendor.
486	486	26 (12) Develop and negotiate a fair and equitable
487	487
488	488
489	489
490	490
491	491
492	492	HB3560 - 13 - LRB104 10432 BAB 20507 b
493	493
494	494
495	495	HB3560- 14 -LRB104 10432 BAB 20507 b HB3560 - 14 - LRB104 10432 BAB 20507 b
496	496	HB3560 - 14 - LRB104 10432 BAB 20507 b
497	497	1 Program fee and Program revenue sharing structure between
498	498	2 the State and the financial services network administrator
499	499	3 in furtherance of attaining a financially self-sustaining
500	500	4 Program, which agreement shall be reevaluated annually and
501	501	5 renegotiated as appropriate based on Program scope and
502	502	6 scale.
503	503	7 Section 20. Duties of employers. An employer with more
504	504	8 than 25 employees and a hiring entity with more than 25
505	505	9 independent contractors performing the same or similar labor
506	506	10 or service, excluding the federal government, shall:
507	507	11 (1) Have and maintain a payroll direct deposit
508	508	12 arrangement that enables voluntary worker participation in
509	509	13 the Program.
510	510	14 (2) Deposit all wages and other payments due a worker
511	511	15 that the worker has authorized to be directly deposited by
512	512	16 electronic fund transfer into the worker's Illinois Bank
513	513	17 Account in accordance with the worker's authorization.
514	514	18 (3) Coordinate the payroll process with the Program
515	515	19 administrator's application Program interface to
516	516	20 facilitate accurate and seamless payment by direct deposit
517	517	21 in accordance with the authorization of each worker
518	518	22 participant.
519	519	23 (4) Cooperate with the Program administrator in
520	520	24 providing all requested information available to the
521	521	25 employer or hiring entity necessary for the opening and
522	522
523	523
524	524
525	525
526	526
527	527	HB3560 - 14 - LRB104 10432 BAB 20507 b
528	528
529	529
530	530	HB3560- 15 -LRB104 10432 BAB 20507 b HB3560 - 15 - LRB104 10432 BAB 20507 b
531	531	HB3560 - 15 - LRB104 10432 BAB 20507 b
532	532	1 administration of a worker's Illinois Bank Account.
533	533	2 (5) Upon request of the administrator, provide
534	534	3 additional forms or notifications to a worker.
535	535	4 (6) Refrain from discharging, disciplining,
536	536	5 threatening to discharge or discipline, or in any other
537	537	6 manner retaliating or taking an adverse action against a
538	538	7 worker or applicant because of the individual's
539	539	8 participation or manner of participation in the Program.
540	540	9 Section 25. Duties of landlords.
541	541	10 (a) A landlord or a landlord's agent must allow a tenant to
542	542	11 pay rent and deposits of security by an electronic funds
543	543	12 transfer from an Illinois Bank Account.
544	544	13 (b) A landlord's, or a landlord's agent's, receipt of
545	545	14 payment from an Illinois Bank Account pursuant to the
546	546	15 requirements of the Program shall not be considered a waiver
547	547	16 of any right the landlord or landlord's agent may otherwise
548	548	17 have to establish the base rent on, or to raise rent for, the
549	549	18 rental unit.
550	550	19 Section 30. Rulemaking. The Department may adopt rules to
551	551	20 implement the provisions of this Act.
552	552
553	553
554	554
555	555
556	556
557	557	HB3560 - 15 - LRB104 10432 BAB 20507 b