SPRINGFIELD, Ill. � Gov. JB Pritzker signed four bills into law Tuesday aiming to bring economic equity across the state. Each of the new laws championed by the Legislative Black Caucus addresses decades of disinvestment in Black and brown communities by creating new economic policies and programs.
“It’s easy to see the terrible consequences of systemic racism in economic access, in equity, in opportunity. But, it’s another thing to actually do something about it,� Pritzker said. “Together, these four bills mark significant progress in our efforts to close the racial gaps and eliminate barriers that have for too long unfairly held Black and brown Illinoisans back.�
Lt. Governor Juliana Stratton says the amount of money you make or home you can afford too often depends on race. She said the median net worth of white families in the United States is roughly $171,000. Stratton noted it’s ten times higher than that of Black families. She also said the amount is eight times higher than the net worth of Latinx families.
“It is the product of discriminatory and predatory lending practices,� Stratton stressed. “It is the product of a lack of access to affordable credit. It’s the product of job discrimination and not being promoted despite being hardworking and productive.�
Reinvesting in communities
The Illinois Community Reinvestment Act sets new standards for the state to analyze low and moderate-income lending by banks, credit unions, and non-bank mortgage lenders. Caucus members say this creates an incentive for financial institutions to help those most in need. Another provision establishes a community development loan program to guarantee small business and consumer loans to borrowers of color or people who live in low-income communities who haven’t qualified up to this point.
“Because of historic redlining and racist policies built into our real estate system, it’s been harder for Black families to find affordable, quality housing. This law helps change that,� said Senate Majority Leader Kimberly Lightford (D-Maywood).
also creates a Commission on Equity and Inclusion to develop a new procurement scoring system. Sponsors say minority contractors should have a fair chance of landing state contracts with agencies and universities. Under the updated scoring system, Illinois must award 20% of points to vendors committed to diversity and other equity measures. The commission is also tasked with providing support for diversity hiring and training initiatives for agencies.
“Agenda changes when authority walks in the room,� said Sen. Christopher Belt (D-Centreville). “So, in order for us to make sure that all of these things are being followed the way that they’re supposed to be, we created an authority to change the agenda.�
Belt also said the state should accept nothing less than true equity to ensure success for minority families and businesses.
Capping the price of loans
The prohibits lenders from charging more than 36% APR on consumer loans. Sponsors say the new cap will provide protections against payday, installment, and auto title loans. They already expect various loan business groups to file bills asking for carveouts citing unintended consequences. However, Sen. Jacqueline Collins (D-Chicago) says they’re ready to defend this law.
“Let me assure you, casting a wide net to stop predatory lending was very much an intended consequence,� Collins said.
Protecting human rights
amends the Illinois Human Rights Act to protect anyone trying to support themselves or their families by getting a job if they have a criminal history.
“Because of this new law, never again should an employer refuse to hire someone based on a criminal conviction if that conviction has nothing to do with the type of job being sought,� said Rep. Sonya Harper (D-Chicago).
The Caucus Chair’s measure also requires large private companies to track and report wage data on race and gender. Harper said companies will face penalties if owners fail to obtain equal pay certificates from the Illinois Department of Labor.
“These measures are a major step forward not only for the residents of underserved and disadvantaged communities, but the state as a whole,� Harper added.
Belt echoed that message later in the signing ceremony.
“If you’re doing better, your family does better. If your family does better, that community does better,� Belt said. “How? Because you’re building in that community. You’re spending to businesses that are already in that community.�
Here to help
Sen. Robert Peters (D-Chicago) is the new Senate Chair of the Black Caucus. He said people shouldn’t say the new laws only impact Cook County. Peters emphasized the Black Caucus looked out for everyone.
“For too long, there have been people who try to divide us up and break us up specifically for whatever they need. But, we’re united to make sure that as we come out of this crisis, as we come out of this pain, that we look towards each other as neighbors, as community, as family. And we say we are here to help,� Peters said. “This is not an individualistic time to pick ourselves up from bootstraps that we don’t have and if we had a little was taken away decades ago. This is a time for us to pick each other up as one community, as one Illinois.�
Still, a major challenge is ensuring the state implements the laws. Caucus members previously noted several times that many of their plans that became law went years without implementation.
“A lot of the issues that we’re trying to address with the new laws today, we’ve been trying to address them for years,� Harper explained. “Going forward, we have a committee in our Legislative Black Caucus that is going to be tracking our laws and making sure that they’re implemented perfectly so that we can report to the governor’s office or those noted agencies when our laws aren’t being properly implemented the way that we intended for them to be.�
