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SB 1301

Sales tax; providing exemption for animal shelters. Effective date.

2026 Regular Session Introduced by Micheal Bergstrom

Public deposits must go to financial institutions with satisfactory or outstanding Illinois CRA ratings, effective Jan 1, 2026, tying deposits to CRA performance.

Second Reading referred to Revenue and Taxation Committee then to Appropriations Committee
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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  • Deposits already made: State/public funds already deposited may not be withdrawn prior to maturity solely because of a less‑than‑satisfactory Illinois CRA rating.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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