HB2570 104TH GENERAL ASSEMBLY

LRB104 08860 JRC 18915 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB2570

Introduced 2/4/2025, by Rep. Jay Hoffman

SYNOPSIS AS INTRODUCED:

30 ILCS 105/5.1030 new
750 ILCS 47/57 new

Amends the State Finance Act to create the Surrogacy Agreement Escrow Protection Fund. Amends the Gestational Surrogacy Act. Provides that the Fund is to be used solely for the purpose of providing restitution to those who have suffered monetary loss arising out of an escrow transaction related to a gestational surrogacy contract as regulated by the Act. Provides that the Fund is to be applied only to restitution ordered by the Director of Public Health and restitution may not exceed the amount actually lost.

A BILL FOR

AN ACT concerning finance.

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

Section 5. The State Finance Act is amended by adding Section 5.1030 as follows:

(30 ILCS 105/5.1030 new)

Sec. 5.1030. The Surrogacy Agreement Escrow Protection Fund.

Section 10. The Gestational Surrogacy Act is amended by adding Section 57 as follows:

(750 ILCS 47/57 new)

Sec. 57.Surrogacy Agreement Escrow Protection Fund.

(a) The Surrogacy Agreement Escrow Protection Fund is created as a special income-earning fund in the State treasury.

(b) All moneys paid into the Fund together and all accumulated undistributed income shall be held as a special fund in the State treasury. The Fund shall be used solely for the purpose of providing restitution to those who have suffered monetary loss arising out of an escrow transaction related to a gestational surrogacy contract as regulated by this Act.

(c) The Fund shall be applied only to restitution ordered by the Director of Public Health. Restitution may not exceed the amount actually lost. The Fund may not be used for the payment of attorney's fees or other fees.

(d) The Fund shall be subrogated to the amount of the restitution, and the Director shall request the Attorney General to engage in all reasonable collection steps to collect restitution from the party responsible for the loss and reimburse the Fund.

(e) Notwithstanding any other provisions of this Section, the payment of restitution from the Fund shall be a matter of grace and not of right, and no person shall have any vested rights in the Fund as a beneficiary or otherwise. Before seeking restitution from the Fund, the person or beneficiary shall apply for restitution on a form provided by the Director. The form shall include any information the Director may reasonably require to determine that restitution is appropriate.

(f) Any person who suffered a monetary loss that would qualify them for restitution under this Section on or after January 1, 2023, may apply for restitution.

(g) Every entity in the State engaged in escrow transactions as required by this Act shall be assessed a yearly fee of $1,000. At any time when the balance of the Fund falls below $150,000, a special fee must be assessed in the amount necessary to bring the balance over $150,000. Each entity shall be assessed a percentage of that total equal to the percentage of escrow funds each entity handled the previous calendar year of the total. These fees may not be assessed until an initial appropriation has been made to the Fund.