HB2542 99TH GENERAL ASSEMBLY

LRB099 09938 MGM 30156 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB2542

Introduced 2/18/2015, by Rep. Monique D. Davis

SYNOPSIS AS INTRODUCED:

205 ILCS 5/47.5 new
205 ILCS 305/9.5 new

Amends the Illinois Banking Act and the Illinois Credit Union Act. Requires financial institutions and credit unions to maintain and submit a record of applications for credit from women-owned businesses, minority-owned businesses, or small businesses. Provides requirements for the maintenance and collection of those records. Authorizes the Department of Financial and Professional Regulation to adopt rules necessary to implement the provisions. Provides that the provisions shall be operative only until the effective date of the federal regulations implementing a specified provision of the federal Dodd-Frank Wall Street Reform and Consumer Protection Act. Effective immediately.

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Banking Act is amended by adding Section 47.5 as follows:

(205 ILCS 5/47.5 new)

Sec. 47.5. Records and report; women-owned business, minority-owned business, and small business.

(a) The purpose of this Section is to facilitate the enforcement of fair lending laws and enable communities, governmental entities, and creditors to identify business and community development needs and opportunities of women-owned businesses, minority-owned businesses, and small businesses. For the purposes of this Section, "women-owned business", "minority-owned business", and "small business" have the meanings as given to those terms in the Dodd-Frank Wall Street Reform and Consumer Protection Act.

(b) Subject to the requirements of this Section, for any application to a financial institution for credit, the financial institution shall:

(1) inquire whether the business is a women-owned business, minority-owned business, or small business, without regard to whether the application is received in person, by mail, by telephone, by electronic mail or other form of electronic transmission, or by any other means, and whether the application is in response to a solicitation by the financial institution; and

(2) maintain a record of the responses to the inquiries separately from the application and accompanying information on forms supplied by the Department.

Any applicant for credit may refuse to provide any information requested pursuant to this subsection (b) in connection with any application for credit.

(c) Where feasible, no loan underwriter or other officer or employee of a financial institution, or any affiliate of a financial institution, involved in making any determination concerning an application for credit shall have access to any information provided by the applicant pursuant to a request under subsection (b) in connection with an application.

If a financial institution determines that a loan underwriter or other officer, employee, or affiliate of a financial institution involved in making any determination concerning an application for credit should have access to any information provided by the applicant pursuant to a request under subsection (b), the financial institution shall provide notice to the applicant of the access of the underwriter to the information, along with notice that the financial institution may not discriminate on the basis of the information.

(d) Each financial institution shall compile and maintain a record of the information provided by any loan applicant pursuant to a request under subsection (b) on forms supplied by the Department.

Information compiled and maintained under subsection (b) shall be itemized in order to clearly and conspicuously disclose:

(1) the number of the application and the date on which the application was received;

(2) the type and purpose of the loan or other credit being applied for;

(3) the amount of the credit or credit limit applied for and the amount of the credit transaction or the credit limit approved for the applicant;

(4) the type of action taken with respect to the application and the date of the action;

(5) the census tract in which the principal place of business of the women-owned business, minority-owned business, or small business loan applicant is located;

(6) the gross annual revenue of the business in the last fiscal year of the women-owned business, minority-owned business, or small business loan applicant preceding the date of the application;

(7) the race, sex, and ethnicity of the principal owners of the business; and

(8) any additional data that the Department determines would aid in fulfilling the purposes of this Section.

(e) In compiling and maintaining any record of information under this Section, a financial institution shall not include in the record the name, specific address (other than the census tract required by paragraph (5) of subsection (d)), telephone number, electronic mail address, or any other personally identifiable information concerning any individual who is, or is connected with, the women-owned business, minority-owned business, or small business loan applicant.

(f) The data required to be compiled and maintained under this Section by the financial institution shall be submitted annually to the Department. If the financial institution has not received any credit applications from women-owned, minority-owned, or small businesses, the financial institution shall not be required to submit an annual report as required under this Section.

(h) The Department shall adopt rules necessary to implement this Section.

(i) This Section shall be operative only until the effective date of the federal regulations implementing Section 1071 of the federal Dodd-Frank Wall Street Reform and Consumer Protection Act.

Section 10. The Illinois Credit Union Act is amended by adding Section 9.5 as follows:

(205 ILCS 305/9.5 new)

Sec. 9.5. Records and report; women-owned business, minority-owned business, and small business.

(a) The purpose of this Section is to facilitate the enforcement of fair lending laws and enable communities, governmental entities, and creditors to identify business and community development needs and opportunities of women-owned businesses, minority-owned businesses, and small businesses. For the purposes of this Section, "women-owned business", "minority-owned business", and "small business" have the meanings as given to those terms in the Dodd-Frank Wall Street Reform and Consumer Protection Act.

(b) Subject to the requirements of this Section, for any application to a credit union for credit, the credit union shall:

(1) inquire whether the business is a women-owned business, minority-owned business, or small business, without regard to whether the application is received in person, by mail, by telephone, by electronic mail or other form of electronic transmission, or by any other means, and whether the application is in response to a solicitation by the credit union; and

(2) maintain a record of the responses to the inquiries separately from the application and accompanying information on forms supplied by the Department.

Any applicant for credit may refuse to provide any information requested pursuant to this subsection (b) in connection with any application for credit.

(c) Where feasible, no loan underwriter or other officer or employee of a credit union, or any affiliate of a credit union, involved in making any determination concerning an application for credit shall have access to any information provided by the applicant pursuant to a request under subsection (b) in connection with an application.

If a credit union determines that a loan underwriter or other officer, employee, or affiliate of a credit union involved in making any determination concerning an application for credit should have access to any information provided by the applicant pursuant to a request under subsection (b), the credit union shall provide notice to the applicant of the access of the underwriter to the information, along with notice that the credit union may not discriminate on the basis of the information.

(d) Each credit union shall compile and maintain a record of the information provided by any loan applicant pursuant to a request under subsection (b) on forms supplied by the Department.

Information compiled and maintained under subsection (b) shall be itemized in order to clearly and conspicuously disclose:

(1) the number of the application and the date on which the application was received;

(2) the type and purpose of the loan or other credit being applied for;

(3) the amount of the credit or credit limit applied for and the amount of the credit transaction or the credit limit approved for the applicant;

(4) the type of action taken with respect to the application and the date of the action;

(5) the census tract in which the principal place of business of the women-owned business, minority-owned business, or small business loan applicant is located;

(6) the gross annual revenue of the business in the last fiscal year of the women-owned business, minority-owned business, or small business loan applicant preceding the date of the application;

(7) the race, sex, and ethnicity of the principal owners of the business; and

(8) any additional data that the Department determines would aid in fulfilling the purposes of this Section.

(e) In compiling and maintaining any record of information under this Section, a credit union shall not include in the record the name, specific address (other than the census tract required by paragraph (5) of subsection (d)), telephone number, electronic mail address, or any other personally identifiable information concerning any individual who is, or is connected with, the women-owned business, minority-owned business, or small business loan applicant.

(f) The data required to be compiled and maintained under this Section by the credit union shall be submitted annually to the Department. If the credit union has not received any credit applications from women-owned, minority-owned, or small businesses, the credit union shall not be required to submit an annual report as required under this Section.

(h) The Department shall adopt rules necessary to implement this Section.

(i) This Section shall be operative only until the effective date of the federal regulations implementing Section 1071 of the federal Dodd-Frank Wall Street Reform and Consumer Protection Act.

Section 99. Effective date. This Act takes effect upon becoming law.