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SB 1301

FUNDS-COMMUNITY REINVESTMENT

104th Regular Session Introduced by Kimberly Du Buclet and 5 co-sponsors

The act requires state and public deposits to go only to institutions rated satisfactory or outstanding under the Illinois CRA, effective Jan 1, 2026.

Public Act . . . . . . . . . 104-0092
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Bill Summary · SB 1301

Summary — SB 1301 (Public Act 104-0092)

Status: Enacted (Public Act 104-0092). Governor approved Aug 1, 2025. Effective date: January 1, 2026.
Statutory changes: amends the Deposit of State Moneys Act (15 ILCS 520/16.1 & 16.3) and the Public Funds Investment Act (30 ILCS 235/8).

Purpose / Intent

To require the State Treasurer and other public agencies to consider a financial institution’s record under the Illinois Community Reinvestment Act (Illinois CRA) when deciding where to deposit state or public funds, and to restrict deposits to institutions with at least a satisfactory Illinois CRA rating (with a limited transitional exception).

Key provisions

  • Adds Illinois CRA ratings as an express factor for deposit decisions by:
    • The State Treasurer (Deposit of State Moneys Act, Sec. 16.3).
    • Public agencies (Public Funds Investment Act, Sec. 8).
  • Prohibition effective January 1, 2026:
    • No State or public funds may be deposited in a financial institution subject to the Illinois CRA unless either:
    • The institution has a current rating of “satisfactory” or “outstanding” under the Illinois CRA at the time of deposit; or
    • The Department of Financial and Professional Regulation (DFPR) has not yet completed its initial Illinois CRA examination of that institution.
  • Maintains earlier federal-CRA requirement (effective Jan 1, 2022) that institutions subject to the federal CRA must have a current “satisfactory” or “outstanding” federal CRA rating to receive State/public deposits.
  • Preference: the Treasurer/public agencies may give preference to institutions rated “outstanding” under the federal CRA and Illinois CRA.
  • Deposits already made: State/public funds already deposited may not be withdrawn prior to maturity solely because of a less‑than‑satisfactory Illinois CRA rating.
  • Reporting/records: The State Treasurer may request (but not compel confidential) copies of consolidated reports of condition and income and CRA statements/examinations, if publicly available.
  • Limits: Does not authorize the Treasurer or agencies to conduct regulatory examinations or to obtain nonpublic information.

Who is affected

  • Financial institutions subject to the Illinois Community Reinvestment Act (primarily state‑regulated banks/credit unions subject to Illinois CRA examination).
  • State Treasurer, state agencies, and local/public agencies that invest or hold public funds.
  • Department of Financial and Professional Regulation (DFPR), which performs Illinois CRA exams.

Practical impacts / considerations

  • Incentivizes stronger community reinvestment performance by tying eligibility for public deposits to Illinois CRA ratings.
  • Institutions with less-than‑satisfactory Illinois CRA ratings may lose public deposits beginning 1/1/2026, potentially affecting liquidity and funding costs.
  • Public agencies must include Illinois CRA ratings in their deposit policies and may need procedures to check ratings and DFPR examination status.
  • The law preserves stability by preventing early withdrawal of maturing deposits solely due to a low Illinois CRA rating.
  • Does not override confidentiality or regulatory access limits.

Compiled from official sources — confirm details with the bill’s official record.

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