Bill Text: IL HB2406 | 2013-2014 | 98th General Assembly | Amended

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Bill Title: Amends the Illinois Banking Act. Provides that all State banks shall include in their quarterly statement to the Secretary of Financial and Professional Regulation (i) a list of all loans given to minority owned businesses in the last quarter and (ii) the ethnicity of the majority of owners of those businesses. Effective immediately.

Sponsorship: Partisan Bill (Democrat 29)

Status: (Failed) 2014-12-03 - Session Sine Die [HB2406 Detail]

Download: Illinois-2013-HB2406-Amended.html

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Rep. Monique D. Davis

Filed: 3/12/2013

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AMENDMENT TO HOUSE BILL 2406
AMENDMENT NO. ______. Amend House Bill 2406 by replacing
everything after the enacting clause with the following:
"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

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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

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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

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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

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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

09800HB2406ham002 - 6 - LRB098 09262 MGM 42847 a
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

09800HB2406ham002 - 7 - LRB098 09262 MGM 42847 a
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

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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.".