DuBuclet Measure to Ensure State Funds Flow to Equity-Minded Institutions

CHICAGO –A bill sponsored by state Rep. Kimberly DuBuclet, D-Chicago, will help ensure that the state only invests state dollars in financial institutions that make it a priority to guarantee access to financial services to all customers regardless of their backgrounds.

“As a state, it is imperative for us to spend our taxpayer funds in a way that reflects our core values,” DuBuclet said. “This legislation keeps the momentum of the Community Reinvestment Act going by further encouraging our state’s banks, credit unions and mortgage lenders to play by the rules that level the playing field for all of our communities.”

DuBuclet’s Senate Bill 1301 will require all state funds deposited in financial institutions be held in entities that have a passing rating from the state’s Department of Financial and Professional Regulation (IDFPR). In 2021, as part of the Illinois Legislative Black Caucus’ (ILBC) Four Pillars framework to address systemic racism, financial institutions in Illinois began rating financial institutions on their ability to serve the needs of local residents.

Before its passage, many low- and moderate-income residents may have had to rely on payday lenders and other less reliable methods to meet their financial needs. To attain a passing rating, institutions must adequately advertise services to the community, offer nondigital alternatives, and not engage in discriminatory practices, among other criteria.

Senate Bill 1301 passed both chambers with bipartisan support and was recently signed into law by Gov. JB Pritzker earlier this month.