SB1786 EngrossedLRB099 10339 HLH 30566 b


  
1    AN ACT concerning revenue.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 5. The Department of Revenue Law of the
Civil 
5Administrative Code of Illinois is amended  by adding Section 
62505-760 as follows:
 
7    (20 ILCS 2505/2505-760 new)
8    Sec. 2505-760. Surrender of property; indemnification.
9    (a)  Any person or entity in possession of, or obligated 
10with respect to, property or rights to property subject to 
11levy, upon which a levy has been made, who, upon demand by the 
12Director, surrenders such property or rights to property or 
13discharges such obligation to the Director shall, at the 
14Director's discretion, be discharged from any obligation or 
15liability to the delinquent taxpayer and any other person with 
16respect to such property or rights to property arising from 
17such surrender or payment, but not in an amount in excess of 
18the amount of property or rights to property surrendered to the 
19Director. 
20    (b) The General Assembly recognizes that financial 
21institutions, as defined by Section 2 of the Illinois Banking 
22Act, are in a unique position to assist with the identification 
23of fraud pertaining to refunds deposited in their accounts. The 
 
 
SB1786 Engrossed- 2 -LRB099 10339 HLH 30566 b

1General Assembly further recognizes that, due to the 
2relationship between financial institutions and their 
3customers, financial institutions are reluctant to turn over 
4funds they have identified as fraudulent without assurances 
5that they will not be held liable in the event that refunds 
6were identified as fraud in error.  In order to facilitate the 
7recapture of refunds that have been identified as having been 
8issued as a result of fraud, the Department has the authority, 
9but is not required, to indemnify any financial institution 
10that returns funds to the Department at the request of the 
11Director based on the bona fide belief that the funds held by 
12the financial institution were deposited as a result of fraud 
13committed against another taxpayer, the Department, or another 
14agency of the State of Illinois. 
  
 
15    Section 99. Effective date. This Act takes effect upon 
16becoming law.