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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3266

Introduced 2/3/2026, by Sen. Mattie Hunter

SYNOPSIS AS INTRODUCED:

305 ILCS 5/11-3.1

from Ch. 23, par. 11-3.1

Amends the Illinois Public Aid Code. Provides that, to the extent
permitted under federal law and regulations, the Department of Human
Services shall, as soon as practical after the effective date of the
amendatory Act but not later than March 1, 2027, implement an electronic
benefits transfer system that uses industry-standard commercial electronic
funds transfer technology, including, at a minimum, the use of cards with
EMV chips.
LRB104 18410 RPS 31852 b

A BILL FOR

SB3266
LRB104 18410 RPS 31852 b
1

AN ACT concerning public aid.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Illinois Public Aid Code is amended by
5
changing Section 11-3.1 as follows:

6

(305 ILCS 5/11-3.1)

(from Ch. 23, par. 11-3.1)
7

Sec. 11-3.1.
Any recipient of financial aid which is
8
payable to the recipient at regular intervals may elect to
9
have the aid deposited, and the Illinois Department of Human
10
Services is authorized to deposit the aid, directly in the
11
recipient's savings account or checking account or in any
12
electronic benefits transfer account or accounts in a
13
financial institution approved by the Illinois Department of
14
Human Services and in accordance with the rules and
15
regulations of the Department of Human Services. The Illinois
16
Department of Human Services and any electronic benefits
17
transfer financial institutions or contractor shall encourage
18
financial institutions to provide checking account and savings
19
account services to recipients of public aid.
20

Any recipient of financial aid or benefits distributed by
21
means other than electronic benefits transfer under Articles
22
III, IV, and VI of this Code may elect to receive the aid by
23
means of direct deposit transmittals to his or her account

SB3266
- 2 -
LRB104 18410 RPS 31852 b
1
maintained at a bank, savings and loan association, or credit
2
union or by means of electronic benefits transfer in a
3
financial institution approved by the Illinois Department of
4
Human Services and in accordance with rules and regulations of
5
the Illinois Department of Human Services. The Illinois
6
Department of Human Services may distribute financial aid or
7
food stamp benefits by means of electronic benefits transfer
8
and may require recipients to receive financial aid or food
9
stamp benefits by means of electronic benefits transfer,
10
provided that any electronic benefits transfer made under this
11
Section shall be accomplished in compliance with the
12
Electronic Fund Transfer Act and any relevant rules
13
promulgated thereunder. The Illinois Department of Human
14
Services may provide for a method of compensation for services
15
in accordance with the rules and regulations of the Illinois
16
Department of Human Services, the United States Department of
17
Agriculture, the United States Department of Health and Human
18
Services, and the State Comptroller and the State Treasurer.
19
The Illinois Department of Human Services shall require a
20
convenient density of distribution points for recipients of
21
public aid to have adequate options to access aid held in an
22
electronic benefits transfer account. No fee may be charged to
23
recipients for reasonable access to public aid benefits held
24
in such an account. Deposits into a financial institution for
25
electronic benefits transfer accounts shall be subject to
26
community reinvestment and to serving public benefits

SB3266
- 3 -
LRB104 18410 RPS 31852 b
1
recipients pursuant to relevant criteria of the State
2
Treasurer, Comptroller, and the Illinois Department of Human
3
Services. The Electronic Benefits Transfer Fund is hereby
4
created for the purpose of electronically disbursing public
5
aid benefits.
6

The electronic benefits transfer contractor shall inform
7
the Department of Human Services whenever it has distributed
8
financial aid to individuals by means of electronic benefits
9
transfer. The Illinois Department of Human Services shall
10
determine the amount to be reimbursed to the contractor and
11
shall direct the State Treasurer to transfer this portion of
12
the amount previously vouchered by the Department of Human
13
Services and approved by the Comptroller pursuant to Section
14
9.05(c) of the State Comptroller Act to the contractor from
15
the Electronic Benefits Transfer Fund created under Section
16
9.05(b) of the State Comptroller Act in accordance with the
17
rules and regulations of the Illinois Department of Human
18
Services, the United States Department of Agriculture, the
19
United States Department of Health and Human Services, the
20
State Comptroller, and the State Treasurer.
21

To the extent permitted under federal law and regulations,
22
the Department of Human Services shall, as soon as practical
23
after the effective date of this amendatory Act of the 104th
24
General Assembly but not later than March 1, 2027, implement
25
an electronic benefits transfer system that uses
26
industry-standard commercial electronic funds transfer

SB3266
- 4 -
LRB104 18410 RPS 31852 b
1
technology, including, at a minimum, the use of cards with EMV
2
chips.

3
(Source: P.A. 95-331, eff. 8-21-07.)

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