Bill Text: IL SB1301 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Deposit of State Moneys Act and the Public Funds Investment Act. Provides that the State Treasurer or any public agency may consider the current and historical ratings that a financial institution has received under the Illinois Community Reinvestment Act when deciding whether to deposit State or public funds in that financial institution. Provides that, effective January 1, 2026, no State or public funds may be deposited in a financial institution subject to the Illinois Community Reinvestment Act unless either (i) the institution has a current rating of satisfactory or outstanding under the Illinois Community Reinvestment Act or (ii) the Department of Financial and Professional Regulation has not yet completed its initial examination of the institution pursuant to the Illinois Community Reinvestment Act. Makes conforming changes. Effective January 1, 2026.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-02-04 - Assigned to Financial Institutions [SB1301 Detail]

Download: Illinois-2025-SB1301-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1301 Introduced 1/28/2025, by Sen. Mattie Hunter SYNOPSIS AS INTRODUCED:
15 ILCS 520/16.1 from Ch. 130, par. 35.1
15 ILCS 520/16.3
30 ILCS 235/8
Amends the Deposit of State Moneys Act and the Public Funds Investment Act. Provides that the State Treasurer or any public agency may consider the current and historical ratings that a financial institution has received under the Illinois Community Reinvestment Act when deciding whether to deposit State or public funds in that financial institution. Provides that, effective January 1, 2026, no State or public funds may be deposited in a financial institution subject to the Illinois Community Reinvestment Act unless either (i) the institution has a current rating of satisfactory or outstanding under the Illinois Community Reinvestment Act or (ii) the Department of Financial and Professional Regulation has not yet completed its initial examination of the institution pursuant to the Illinois Community Reinvestment Act. Makes conforming changes. Effective January 1, 2026.
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A BILL FOR
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AN ACT concerning State government.
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
changing Sections 16.1 and 16.3 as follows:
(15 ILCS 520/16.1) (from Ch. 130, par. 35.1)
Sec. 16.1. Depository reports. The State Treasurer may
request, at his discretion, a financial institution, as a
condition to serving as a State depository of public funds, to
submit to the State Treasurer a copy of the consolidated
report of condition and income required to be submitted on a
periodic basis to a State state or federal regulator of the
financial institution, and a copy of the financial
institution's Illinois Community Reinvestment Act statement
and examination, if available, and a copy of the financial
institution's federal Community Reinvestment Act of 1977
statement and examination, if available. Nothing in this
Section, however, shall require a financial institution to
submit any document or part thereof deemed to be confidential
by a State or federal regulator of the financial institution.
(Source: P.A. 87-510.)
(15 ILCS 520/16.3)

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Sec. 16.3. Consideration of financial institution's
commitment to its community.
(a) In addition to any other requirements of this Act, the
State Treasurer shall consider the financial institution's
record and current level of financial commitment to its local
community when deciding whether to deposit State funds in that
financial institution. The State Treasurer may consider
factors, including, but not necessarily limited to:
(1) for financial institutions subject to the federal
Community Reinvestment Act of 1977, the current and
historical ratings that the financial institution has
received, to the extent that those ratings are publicly
available, under the federal Community Reinvestment Act of
1977;
(1.5) for financial institutions subject to the
Illinois Community Reinvestment Act, the current and
historical ratings that the financial institution has
received, to the extent that those ratings are publicly
available, under the Illinois Community Reinvestment Act;
(2) any changes in ownership, management, policies, or
practices of the financial institution that may affect the
level of the financial institution's commitment to its
community;
(3) the financial impact that the withdrawal or denial
of deposits of State funds might have on the financial
institution; and

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(4) the financial impact to the State as a result of
withdrawing State funds or refusing to deposit additional
State funds in the financial institution.
(a-5) Effective January 1, 2022, no State funds may be
deposited in a financial institution subject to the federal
Community Reinvestment Act of 1977 unless the institution has
a current rating of satisfactory or outstanding under the
Community Reinvestment Act of 1977.
(a-6) Effective January 1, 2026, no State funds may be
deposited in a financial institution subject to the Illinois
Community Reinvestment Act unless either (i) the institution
has a current rating of satisfactory or outstanding under the
Illinois Community Reinvestment Act or (ii) the Department of
Financial and Professional Regulation has not yet completed
its initial examination of the institution pursuant to the
Illinois Community Reinvestment Act.
(a-10) When investing or depositing State funds, the State
Treasurer may give preference to financial institutions that
have a current rating of outstanding under the federal
Community Reinvestment Act of 1977 and the Illinois Community
Reinvestment Act.
(b) Nothing in this Section shall be construed as
authorizing the State Treasurer to conduct an examination or
investigation of a financial institution or to receive
information that is not publicly available and the disclosure
of which is otherwise prohibited by law.

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(Source: P.A. 101-657, eff. 3-23-21.)
Section 10. The Public Funds Investment Act is amended by
changing Section 8 as follows:
(30 ILCS 235/8)
Sec. 8. Consideration of financial institution's
commitment to its community.
(a) In addition to any other requirements of this Act, a
public agency shall consider the financial institution's
record and current level of financial commitment to its local
community when deciding whether to deposit public funds in
that financial institution. The public agency may consider
factors including, but not necessarily limited to:
(1) for financial institutions subject to the federal
Community Reinvestment Act of 1977, the current and
historical ratings that the financial institution has
received, to the extent that those ratings are publicly
available, under the federal Community Reinvestment Act of
1977;
(1.5) for financial institutions subject to the
Illinois Community Reinvestment Act, the current and
historical ratings that the financial institution has
received, to the extent that those ratings are publicly
available, under the Illinois Community Reinvestment Act;
(2) any changes in ownership, management, policies, or

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practices of the financial institution that may affect the
level of the financial institution's commitment to its
community;
(3) the financial impact that the withdrawal or denial
of deposits of public funds might have on the financial
institution;
(4) the financial impact to the public agency as a
result of withdrawing public funds or refusing to deposit
additional public funds in the financial institution; and
(5) any additional burden on the resources of the
public agency that might result from ceasing to maintain
deposits of public funds at the financial institution
under consideration.
(a-5) Effective January 1, 2022, no public funds may be
deposited in a financial institution subject to the federal
Community Reinvestment Act of 1977 unless the institution has
a current rating of satisfactory or outstanding under the
Community Reinvestment Act of 1977.
(a-6) Effective January 1, 2026, no public funds may be
deposited in a financial institution subject to the Illinois
Community Reinvestment Act unless either (i) the institution
has a current rating of satisfactory or outstanding under the
Illinois Community Reinvestment Act or (ii) the Department of
Financial and Professional Regulation has not yet completed
its initial examination of the institution pursuant to the
Illinois Community Reinvestment Act.

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(a-10) When investing or depositing public funds, the
public agency may give preference to financial institutions
that have a current rating of outstanding under the federal
Community Reinvestment Act of 1977 and the Illinois Community
Reinvestment Act.
(b) Nothing in this Section shall be construed as
authorizing the public agency to conduct an examination or
investigation of a financial institution or to receive
information that is not publicly available and the disclosure
of which is otherwise prohibited by law.
(Source: P.A. 101-657, eff. 3-23-21.)
Section 99. Effective date. This Act takes effect January
1, 2026.