Bill > HB1700

This bill amends the Deposit of State Moneys Act and the Public Funds Investment Act to expand the criteria for depositing state and public funds in financial institutions by incorporating provisions related to the Illinois Community Reinvestment Act (CRA). Specifically, the bill requires the State Treasurer and public agencies to consider a financial institution's ratings under both the federal and Illinois Community Reinvestment Acts when deciding where to deposit funds. Effective January 1, 2026, public and state funds can only be deposited in financial institutions that either have a satisfactory or outstanding rating under the Illinois CRA or are still undergoing their initial examination by the Department of Financial and Professional Regulation. Importantly, the bill prohibits withdrawing previously deposited funds before maturity solely based on a less-than-satisfactory Illinois CRA rating. The legislation also allows public agencies and the State Treasurer to request additional documentation from financial institutions, such as community reinvestment statements and examinations, and gives preference to institutions with outstanding ratings under both the federal and state Community Reinvestment Acts. The bill aims to encourage financial institutions to maintain strong commitments to their local communities and provide transparency in public fund depositing practices.

Budget and Finance, Government Affairs

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1700&GAID=18&DocTypeID=HB&SessionID=114&GA=104