summary
Introduced
02/07/2025
02/07/2025
In Committee
03/21/2025
03/21/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
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.
AI Summary
This bill establishes the Illinois Bank Account Program, a public banking option designed to provide free, zero-penalty financial services to unbanked and underbanked residents of Illinois. The program aims to address financial inequities by creating a state-administered bank account that offers free deposits, withdrawals, and bill payments, with a particular focus on serving low-income and minority communities who are disproportionately excluded from traditional banking services. The bill creates an Illinois Bank Account Board composed of diverse members from government, banking, and consumer advocacy backgrounds to oversee the program. Key provisions include requiring employers with over 25 employees to offer direct deposit into these accounts, allowing landlords to accept rent payments through the accounts, and establishing a comprehensive system for account opening, fund management, and electronic transactions. The program will provide a secure, federally insured transaction account with robust access methods, including a debit card, ATM networks, and online/mobile platforms, and will be designed to accommodate individuals with limited identification or housing stability. The ultimate goal is to provide a low-cost, accessible financial service that can help reduce predatory financial practices and support economic stability for vulnerable populations, particularly those who have historically been marginalized by traditional banking systems.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Rule 19(a) / Re-referred to Rules Committee (on 03/21/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3560&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB3560.htm |
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