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HB 3559

Relating to nicotine; declaring an emergency.

2025 Regular Session Introduced by Farrah Chaichi and 3 co-sponsors

Creates no-fee, federally insured debit accounts for Illinois residents reentering after incarceration, easing access, reducing predatory banking, and supporting reintegration.

In committee upon adjournment.
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Bill Summary · HB 3559

HB 3559 — Reentry Banking Empowerment (Summary)

Purpose and intent

  • Introduces the Reentry Financial Empowerment Act to improve financial access for individuals reentering society after incarceration.
  • Establishes the Illinois Reentry Account Program to provide no-fee, federally insured debit accounts to reentering citizens (those released from an Illinois correctional facility within the past 12 months).
  • Aims to reduce reliance on predatory financial services, promote financial stability, and support successful reintegration and reduced recidivism.

Key provisions

Establishment and oversight

  • Creates the Illinois Reentry Account Program, to be overseen by the Department of Financial and Professional Regulation (DFPR).
  • DFPR is responsible for administering the program and contracting with financial institutions to operate the accounts.
  • The program requires standards for participating institutions and ongoing monitoring.

Account features

  • No-fee debit accounts that are federally insured.
  • No monthly maintenance fees, no overdraft fees, and no minimum balance requirements.
  • Access to a network of ATMs for cash withdrawals, established in partnership with a financial administrator or administrators partnered with the state.
  • A secure debit card for account access.
  • Online and mobile banking options.

Enrollment and outreach

  • DFPR must collaborate with the Illinois Department of Corrections (IDOC) to inform eligible reentering citizens about the program upon release.
  • IDOC shall facilitate enrollment, including:
    • Providing information during pre-release counseling.
    • Assisting with account setup and activation prior to release.

Institutional participation

  • The Department shall contract with one or more financial institutions to administer accounts under the program.
  • Institutions must agree to terms that prohibit fees for account holders and provide the necessary infrastructure (ATMs and branch services) in underserved areas.

Monitoring, reporting, and accountability

  • DFPR will monitor participation and outcomes, including:
    • Number of accounts opened.
    • Geographic distribution of account holders.
    • Financial outcomes (e.g., reduced reliance on predatory financial services).
  • An annual report to the General Assembly detailing progress and recommendations for improvement.

Affected parties

  • Reentering citizens (individuals released from Illinois correctional facilities within the last 12 months).
  • DFPR (program oversight, contracting, and monitoring).
  • IDOC (facilitates enrollment and information dissemination).
  • Partner financial institutions (administer accounts and provide infrastructure).

Implementation timeline and effective date

  • Effective date: immediate upon becoming law.
  • Implementation role begins with coordination between DFPR and IDOC, including pre-release counseling and enrollment activities.

Status and procedural notes

  • Status: Rule 19(a) / Re-referred to Rules Committee.
  • Introduced: February 18, 2025 (HB3559), with subsequent actions in 2025 including initial readings, committee assignments, and Rule 19(a) referral.

This bill represents a focused approach to expanding accessible, no-cost banking for people transitioning back into the community, with a clear implementation and accountability framework.

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

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