HB3559 104TH GENERAL ASSEMBLY

LRB104 10431 BAB 20506 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3559

Introduced 2/18/2025, by Rep. Kevin John Olickal

SYNOPSIS AS INTRODUCED:

New Act

Creates the Reentry Financial Empowerment Act. Requires the Department of Financial and Professional Regulation to oversee the Illinois Reentry Account program to provide no-fee, federally insured debit accounts to reentering citizens who have been released from an Illinois correctional facility for fewer than 12 months. Requires accounts for reentering citizens to include no monthly maintenance fees, overdraft fees, or minimum balance requirements; access to a network of ATMs for cash withdrawals created in partnership with a financial administrator or financial administrators partnered with the state; a secure debit card for account access; and online and mobile banking options. Provides that the Department shall work with the Illinois Department of Corrections to ensure eligible reentering citizens are informed of the program upon release, and the Illinois Department of Corrections shall facilitate enrollment into the program. Requires the Department to contract with one or more financial institutions to administer accounts under the program and provides standards for the institutions. Establishes monitoring responsibilities for the Department and requires reporting of the program's progress to the General Assembly. 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 1. Short title. This Act may be cited as the Reentry Financial Empowerment Act.

Section 2. Findings. The General Assembly finds that:

(1) Individuals reentering society after incarceration face significant barriers to financial stability, including limited access to financial services.

(2) A lack of access to affordable banking services increases the likelihood of reliance on predatory financial products, which perpetuate cycles of poverty and exclusion.

(3) Providing reentering citizens with no-fee, no-minimum-balance debit accounts will empower individuals to reintegrate into society, reduce recidivism, and contribute to the economic health of Illinois.

(4) It is in the State's interest to ensure reentering citizens have the tools to manage their finances securely and affordably.

Section 5. Definitions. As used in this Act:

"Department" means the Department of Financial and Professional Regulation.

"IDOC" means the Illinois Department of Corrections.

"Illinois Reentry Account Program" means the program established to provide no-fee debit accounts to reentering citizens.

"Reentering citizen" means an individual who has been released from an Illinois correctional facility for fewer than 12 months.

Section 10. The Illinois Reentry Account Program.

(a) The Department shall establish and oversee the Illinois Reentry Account Program to provide no-fee, federally insured debit accounts to reentering citizens.

(b) Accounts provided under this program shall include the following features:

(1) no monthly maintenance fees, overdraft fees, or minimum balance requirements;

(2) access to a network of ATMs for cash withdrawals created in partnership with a financial administrator or financial administrators partnered with the State;

(3) a secure debit card for account access; and

(4) online and mobile banking options.

Section 15. Implementation.

(a) The Department shall work with IDOC to ensure eligible reentering citizens are informed of the program upon release.

(b) IDOC shall facilitate the enrollment of reentering citizens by:

(1) providing information about the program during pre-release counseling; and

(2) assisting with account setup and activation prior to release.

(c) The Department shall contract with one or more financial institutions to administer accounts under the program. Participating institutions must:

(1) agree to the program's terms and conditions, including the prohibition of fees for account holders; and

(2) provide adequate infrastructure to support the program, including ATMs and branch services in underserved areas.

Section 20. Reporting and Monitoring.

(a) The Department shall monitor program participation and outcomes, including:

(1) the number of accounts opened;

(2) geographic distribution of account holders; and

(3) financial outcomes for account holders, such as reduced reliance on predatory financial services.

(b) The Department shall submit an annual report to the General Assembly detailing program progress and any recommendations for improvement.

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