HB2542 EngrossedLRB099 09938 MGM 30156 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Banking Act is amended by adding
5Section 47.5 as follows:
 
6    (205 ILCS 5/47.5 new)
7    Sec. 47.5. Records and report; women-owned business,
8minority-owned business, and small business.
9    (a) The purpose of this Section is to facilitate the
10enforcement of fair lending laws and enable communities,
11governmental entities, and creditors to identify business and
12community development needs and opportunities of women-owned
13businesses, minority-owned businesses, and small businesses.
14For the purposes of this Section, "women-owned business",
15"minority-owned business", and "small business" have the
16meanings as given to those terms in the Dodd-Frank Wall Street
17Reform and Consumer Protection Act.
18    (b) Subject to the requirements of this Section, for any
19application to a financial institution for credit, the
20financial institution shall:
21        (1) inquire whether the business is a women-owned
22    business, minority-owned business, or small business,
23    without regard to whether the application is received in

 

 

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1    person, by mail, by telephone, by electronic mail or other
2    form of electronic transmission, or by any other means, and
3    whether the application is in response to a solicitation by
4    the financial institution; and
5        (2) maintain a record of the responses to the inquiries
6    separately from the application and accompanying
7    information on forms supplied by the Department.
8    Any applicant for credit may refuse to provide any
9information requested pursuant to this subsection (b) in
10connection with any application for credit.
11    (c) Where feasible, no loan underwriter or other officer or
12employee of a financial institution, or any affiliate of a
13financial institution, involved in making any determination
14concerning an application for credit shall have access to any
15information provided by the applicant pursuant to a request
16under subsection (b) in connection with an application.
17    If a financial institution determines that a loan
18underwriter or other officer, employee, or affiliate of a
19financial institution involved in making any determination
20concerning an application for credit should have access to any
21information provided by the applicant pursuant to a request
22under subsection (b), the financial institution shall provide
23notice to the applicant of the access of the underwriter to the
24information, along with notice that the financial institution
25may not discriminate on the basis of the information.
26    (d) Each financial institution shall compile and maintain a

 

 

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1record of the information provided by any loan applicant
2pursuant to a request under subsection (b) on forms supplied by
3the Department.
4    Information compiled and maintained under subsection (b)
5shall be itemized in order to clearly and conspicuously
6disclose:
7        (1) the number of the application and the date on which
8    the application was received;
9        (2) the type and purpose of the loan or other credit
10    being applied for;
11        (3) the amount of the credit or credit limit applied
12    for and the amount of the credit transaction or the credit
13    limit approved for the applicant;
14        (4) the type of action taken with respect to the
15    application and the date of the action;
16        (5) the census tract in which the principal place of
17    business of the women-owned business, minority-owned
18    business, or small business loan applicant is located;
19        (6) the gross annual revenue of the business in the
20    last fiscal year of the women-owned business,
21    minority-owned business, or small business loan applicant
22    preceding the date of the application;
23        (7) the race, sex, and ethnicity of the principal
24    owners of the business; and
25        (8) any additional data that the Department determines
26    would aid in fulfilling the purposes of this Section.

 

 

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1    (e) In compiling and maintaining any record of information
2under this Section, a financial institution shall not include
3in the record the name, specific address (other than the census
4tract required by paragraph (5) of subsection (d)), telephone
5number, electronic mail address, or any other personally
6identifiable information concerning any individual who is, or
7is connected with, the women-owned business, minority-owned
8business, or small business loan applicant.
9    (f) The data required to be compiled and maintained under
10this Section by the financial institution shall be submitted
11annually to the Department. If the financial institution has
12not received any credit applications from women-owned,
13minority-owned, or small businesses, the financial institution
14shall not be required to submit an annual report as required
15under this Section.
16    (g) The Department shall adopt rules necessary to implement
17this Section.
18    (h) This Section shall be operative only until the
19effective date of the federal regulations implementing Section
201071 of the federal Dodd-Frank Wall Street Reform and Consumer
21Protection Act.
 
22    Section 10. The Illinois Credit Union Act is amended by
23adding Section 9.5 as follows:
 
24    (205 ILCS 305/9.5 new)

 

 

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1    Sec. 9.5. Records and report; women-owned business,
2minority-owned business, and small business.
3    (a) The purpose of this Section is to facilitate the
4enforcement of fair lending laws and enable communities,
5governmental entities, and creditors to identify business and
6community development needs and opportunities of women-owned
7businesses, minority-owned businesses, and small businesses.
8For the purposes of this Section, "women-owned business",
9"minority-owned business", and "small business" have the
10meanings as given to those terms in the Dodd-Frank Wall Street
11Reform and Consumer Protection Act.
12    (b) Subject to the requirements of this Section, for any
13application to a credit union for credit, the credit union
14shall:
15        (1) inquire whether the business is a women-owned
16    business, minority-owned business, or small business,
17    without regard to whether the application is received in
18    person, by mail, by telephone, by electronic mail or other
19    form of electronic transmission, or by any other means, and
20    whether the application is in response to a solicitation by
21    the credit union; and
22        (2) maintain a record of the responses to the inquiries
23    separately from the application and accompanying
24    information on forms supplied by the Department.
25    Any applicant for credit may refuse to provide any
26information requested pursuant to this subsection (b) in

 

 

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1connection with any application for credit.
2    (c) Where feasible, no loan underwriter or other officer or
3employee of a credit union, or any affiliate of a credit union,
4involved in making any determination concerning an application
5for credit shall have access to any information provided by the
6applicant pursuant to a request under subsection (b) in
7connection with an application.
8    If a credit union determines that a loan underwriter or
9other officer, employee, or affiliate of a credit union
10involved in making any determination concerning an application
11for credit should have access to any information provided by
12the applicant pursuant to a request under subsection (b), the
13credit union shall provide notice to the applicant of the
14access of the underwriter to the information, along with notice
15that the credit union may not discriminate on the basis of the
16information.
17    (d) Each credit union shall compile and maintain a record
18of the information provided by any loan applicant pursuant to a
19request under subsection (b) on forms supplied by the
20Department.
21    Information compiled and maintained under subsection (b)
22shall be itemized in order to clearly and conspicuously
23disclose:
24        (1) the number of the application and the date on which
25    the application was received;
26        (2) the type and purpose of the loan or other credit

 

 

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1    being applied for;
2        (3) the amount of the credit or credit limit applied
3    for and the amount of the credit transaction or the credit
4    limit approved for the applicant;
5        (4) the type of action taken with respect to the
6    application and the date of the action;
7        (5) the census tract in which the principal place of
8    business of the women-owned business, minority-owned
9    business, or small business loan applicant is located;
10        (6) the gross annual revenue of the business in the
11    last fiscal year of the women-owned business,
12    minority-owned business, or small business loan applicant
13    preceding the date of the application;
14        (7) the race, sex, and ethnicity of the principal
15    owners of the business; and
16        (8) any additional data that the Department determines
17    would aid in fulfilling the purposes of this Section.
18    (e) In compiling and maintaining any record of information
19under this Section, a credit union shall not include in the
20record the name, specific address (other than the census tract
21required by paragraph (5) of subsection (d)), telephone number,
22electronic mail address, or any other personally identifiable
23information concerning any individual who is, or is connected
24with, the women-owned business, minority-owned business, or
25small business loan applicant.
26    (f) The data required to be compiled and maintained under

 

 

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1this Section by the credit union shall be submitted annually to
2the Department. If the credit union has not received any credit
3applications from women-owned, minority-owned, or small
4businesses, the credit union shall not be required to submit an
5annual report as required under this Section.
6    (g) The Department shall adopt rules necessary to implement
7this Section.
8    (h) This Section shall be operative only until the
9effective date of the federal regulations implementing Section
101071 of the federal Dodd-Frank Wall Street Reform and Consumer
11Protection Act.
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.