Full Text of HB1391 94th General Assembly
HB1391eng 94TH GENERAL ASSEMBLY
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| AN ACT concerning civil law.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Uniform Disposition of Unclaimed Property | 5 |
| Act is amended by changing Sections 11 and 12 and by adding | 6 |
| Section 3a as follows: | 7 |
| (765 ILCS 1025/3a new) | 8 |
| Sec. 3a. Demutualization; insurance company. | 9 |
| (a) Property distributable in the course of a | 10 |
| demutualization, rehabilitation, or related reorganization of | 11 |
| an insurance company shall be deemed abandoned as follows: | 12 |
| (1) any funds, 2 years after the date of the | 13 |
| demutualization, rehabilitation, or reorganization, if the | 14 |
| funds remain unclaimed, and the owner has not otherwise | 15 |
| communicated with the holder or its agent regarding the | 16 |
| property as evidenced by a memorandum or other record on | 17 |
| file with the holder or its agent; | 18 |
| (2) any stock, 2 years after the date of the | 19 |
| demutualization, rehabilitation, or reorganization if | 20 |
| instruments or statements reflecting the distribution are | 21 |
| either mailed to the owner and returned by the post office | 22 |
| as undeliverable, or not mailed to the owner because of an | 23 |
| address on the books and records of the holder that is | 24 |
| known to be incorrect, and the owner has not otherwise | 25 |
| communicated with the holder or its agent regarding the | 26 |
| property as evidenced by a memorandum or other record on | 27 |
| file with the holder or its agent; and | 28 |
| (b) Property subject to items (1) and (2) of subsection (a) | 29 |
| of this Section shall be set apart and held in the | 30 |
| Demutualization Trust Fund, a special non-appropriated fund | 31 |
| hereby created in the State treasury, for the payment of claims | 32 |
| and expenses associated with the processing of the claims by |
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| the State Treasurer and shall not be transferred to any other | 2 |
| fund until such time as the property would be reportable under | 3 |
| other Sections of this Act. The Demutualization Trust Fund | 4 |
| shall not be subject to Section 8h or 8j of the State Finance | 5 |
| Act.
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| (c) Property not subject to the provisions of subsection | 7 |
| (a), within 2 years of distribution shall remain reportable | 8 |
| under other Sections of this Act.
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| (765 ILCS 1025/11) (from Ch. 141, par. 111)
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| Sec. 11. Report of holder.
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| (a) Except as otherwise provided in
subsection (c) of | 12 |
| Section
4, every person holding funds or other property, | 13 |
| tangible or intangible,
presumed abandoned under this Act shall | 14 |
| report and remit all abandoned property
specified in the report | 15 |
| to the State Treasurer with respect to the property as
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| hereinafter provided. The State Treasurer may exempt any | 17 |
| businesses from the
reporting requirement if he deems such | 18 |
| businesses unlikely to be holding
unclaimed property.
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| (b) The information shall be obtained in one or more | 20 |
| reports as required
by the State Treasurer. The information | 21 |
| shall be verified and shall include:
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| (1) the name, social security or federal tax | 23 |
| identification number,
if known, and last known address, | 24 |
| including zip code, of each
person appearing from the | 25 |
| records of the holder to be the owner of any
property of | 26 |
| the value of $25 or more presumed abandoned under this Act;
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| (2) in case of unclaimed funds of life insurance | 28 |
| corporations the
full name of the insured and any | 29 |
| beneficiary or annuitant and the
last known address | 30 |
| according to the life insurance corporation's records;
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| (3) the date when the property became payable, | 32 |
| demandable, or
returnable, and the date of the last | 33 |
| transaction with the owner with
respect to the property; | 34 |
| and
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| (4) other information which the State Treasurer |
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| prescribes by rule as
necessary for the administration of | 2 |
| this Act.
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| (c) If the person holding property presumed abandoned is a | 4 |
| successor
to other persons who previously held the property for | 5 |
| the owner, or if
the holder has changed his name while holding | 6 |
| the property, he shall
file with his report all prior known | 7 |
| names and addresses of each holder
of the property.
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| (d) The report and remittance of the property specified in | 9 |
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report shall be filed by banking organizations, financial | 10 |
| organizations,
insurance companies other than life insurance | 11 |
| corporations, and governmental
entities before November 1 of | 12 |
| each year as of June 30 next preceding.
The report and | 13 |
| remittance of the property specified in the report shall be
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| filed by business associations, utilities, and life insurance | 15 |
| corporations
before May 1 of each year as of December 31 next | 16 |
| preceding. The Director may
postpone the reporting date upon | 17 |
| written request by any person required to file
a report. The | 18 |
| report and remittance of the property specified in the report | 19 |
| for property subject to subsection (a) of Section 3a of this | 20 |
| Act shall be filed before a date established by the State | 21 |
| Treasurer that is on or after the later of: (i) 30 days after | 22 |
| the effective date of this amendatory Act of the 94th General | 23 |
| Assembly; or (ii) November 1, 2005.
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| (d-5) Notwithstanding the foregoing, currency exchanges | 25 |
| shall be required
to report and remit property specified in the | 26 |
| report within 30 days after the
conclusion of its annual | 27 |
| examination by the Department of Financial
Institutions.
As | 28 |
| part of the examination of a currency exchange, the Department | 29 |
| of Financial
Institutions shall instruct the currency exchange | 30 |
| to submit a complete
unclaimed
property report using the State | 31 |
| Treasurer's formatted diskette reporting
program or an | 32 |
| alternative reporting format approved by the State Treasurer.
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| The Department of Financial Institutions shall provide the | 34 |
| State Treasurer with
an accounting of the money orders located | 35 |
| in the course of the annual
examination including, where | 36 |
| available, the amount of service fees deducted and
the date of |
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| the
conclusion of the examination.
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| (e) Before filing the annual report, the holder of property | 3 |
| presumed
abandoned under this Act shall communicate with the | 4 |
| owner at his last known
address if any address is known to the | 5 |
| holder, setting forth the provisions
hereof necessary to occur | 6 |
| in order to prevent abandonment from being presumed.
If the | 7 |
| holder has not communicated with the owner at his last known | 8 |
| address at
least 120 days before the deadline for filing the | 9 |
| annual report, the holder
shall mail, at least 60 days before | 10 |
| that deadline, a letter by first class mail
to the owner at his | 11 |
| last known address unless any address
is shown to be | 12 |
| inaccurate, setting forth the provisions hereof
necessary to | 13 |
| prevent abandonment from being presumed.
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| (f) Verification, if made by a partnership, shall be | 15 |
| executed by a
partner; if made by an unincorporated association | 16 |
| or private
corporation, by an officer; and if made by a public | 17 |
| corporation, by its
chief fiscal officer.
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| (g) Any person who has possession of property which he has | 19 |
| reason to
believe will be reportable in the future as unclaimed | 20 |
| property, may
report and deliver it prior to the date required | 21 |
| for such reporting in
accordance with this Section and is then | 22 |
| relieved of responsibility as
provided in Section 14.
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| (h) (1) Records pertaining to presumptively abandoned | 24 |
| property held by a
trust
division or trust department or by a | 25 |
| trust company, or affiliate of any of the
foregoing that | 26 |
| provides nondealer corporate custodial services for securities
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| or securities transactions, organized under the laws of this or | 28 |
| another state
or the United States shall be retained until the | 29 |
| property is delivered to the
State Treasurer.
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| As of January 1, 1998, this subdivision (h)(1) shall not be | 31 |
| applicable
unless the Department of Financial Institutions has | 32 |
| commenced, but
not finalized, an examination of the
holder as | 33 |
| of that date and the property is included in a final | 34 |
| examination
report for the period covered by the examination.
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| (2) In the case of all other holders commencing on the | 36 |
| effective date of
this amendatory Act of 1993, property records |
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| for the period required for
presumptive abandonment plus the 9 | 2 |
| years immediately preceding the beginning of
that period shall | 3 |
| be retained for 5 years after the property was reportable.
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| (i) The State Treasurer may promulgate rules establishing
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| the format and media to be used by a holder in submitting | 6 |
| reports required
under this Act.
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| (j) Other than the Notice to Owners required by Section 12 | 8 |
| and other
discretionary means employed by the State Treasurer | 9 |
| for notifying owners of the
existence of abandoned property, | 10 |
| the State Treasurer shall not disclose any
information provided | 11 |
| in reports filed with the State Treasurer or any
information | 12 |
| obtained in the course of an examination by the State Treasurer | 13 |
| to
any person other than governmental agencies for the purposes | 14 |
| of returning
abandoned property to its owners or to those | 15 |
| individuals who appear to be the
owner of the property or | 16 |
| otherwise have a valid claim to the property, unless
written | 17 |
| consent from the person entitled to the property is obtained by | 18 |
| the
State Treasurer.
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| (Source: P.A. 92-271, eff. 8-7-01; 93-531, eff. 8-14-03.)
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| (765 ILCS 1025/12) (from Ch. 141, par. 112)
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| Sec. 12. Notice to owners.
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| (a) For property reportable by May 1, as identified by
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| Section 11, the State Treasurer shall cause notice to be | 24 |
| published once in an
English language newspaper of general | 25 |
| circulation in the county in this State
in which is located the | 26 |
| last known address of any person to be named in the
notice on | 27 |
| or before November 1 of the same year. For property reportable
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| by November 1, as identified by Section 11, the State Treasurer | 29 |
| shall cause
notice to be published once in an English language | 30 |
| newspaper of general
circulation in the county in this State in | 31 |
| which is located the last known
address of any person named in | 32 |
| the notice on or before May 1 of the next
year. If no address
is | 33 |
| listed or if the address is outside this State, the
notice | 34 |
| shall be published in the county in which the holder of the | 35 |
| abandoned
property has his principal place of business within |
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| this State. However, if an
out-of-state address is in a state | 2 |
| that is not a party to a reciprocal
agreement with this State | 3 |
| concerning abandoned property, the notice may be
published in | 4 |
| the Illinois Register. The names of owners that are identified | 5 |
| and contacted directly by the State Treasurer do not have to be | 6 |
| published as described in this Section.
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| (b) The published notice shall be entitled "Notice of Names | 8 |
| of Persons
Appearing to be Owners of Abandoned Property", and | 9 |
| shall contain:
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| (1) The names in alphabetical order and last known | 11 |
| addresses, if any, of
persons listed in the report and | 12 |
| entitled to notice within the county as
hereinbefore | 13 |
| specified.
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| (2) A statement that information concerning the amount | 15 |
| or description of
the property and the name and address of | 16 |
| the holder may be obtained by any
persons possessing an | 17 |
| interest in the property by addressing an inquiry to
the | 18 |
| State Treasurer.
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| (3) A statement that the abandoned property has been | 20 |
| placed in the
custody of the State Treasurer to whom all | 21 |
| further claims must
thereafter be directed.
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| (c) The State Treasurer is not required to publish in such | 23 |
| notice any item
of less than $100 or any item for which the | 24 |
| address of the last known owner is
in a state that has a | 25 |
| reciprocal agreement with this State concerning
abandoned | 26 |
| property unless he deems such publication to be in the public
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| interest.
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| (Source: P.A. 93-531, eff. 8-14-03.)
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| Section 10. The State Finance Act is amended by amending | 30 |
| Sections 8h and 8j and by adding Section 5.640 as follows: | 31 |
| (30 ILCS 105/5.640 new) | 32 |
| Sec. 5.640. The Demutualization Trust Fund. | 33 |
| (30 ILCS 105/8h)
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| Sec. 8h. Transfers to General Revenue Fund. | 2 |
| (a) Except as provided in subsection (b), notwithstanding | 3 |
| any other
State law to the contrary, the Governor
may, through | 4 |
| June 30, 2007, from time to time direct the State Treasurer and | 5 |
| Comptroller to transfer
a specified sum from any fund held by | 6 |
| the State Treasurer to the General
Revenue Fund in order to | 7 |
| help defray the State's operating costs for the
fiscal year. | 8 |
| The total transfer under this Section from any fund in any
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| fiscal year shall not exceed the lesser of (i) 8% of the | 10 |
| revenues to be deposited
into the fund during that fiscal year | 11 |
| or (ii) an amount that leaves a remaining fund balance of 25% | 12 |
| of the July 1 fund balance of that fiscal year. In fiscal year | 13 |
| 2005 only, prior to calculating the July 1, 2004 final | 14 |
| balances, the Governor may calculate and direct the State | 15 |
| Treasurer with the Comptroller to transfer additional amounts | 16 |
| determined by applying the formula authorized in Public Act | 17 |
| 93-839 to the funds balances on July 1, 2003.
No transfer may | 18 |
| be made from a fund under this Section that would have the
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| effect of reducing the available balance in the fund to an | 20 |
| amount less than
the amount remaining unexpended and unreserved | 21 |
| from the total appropriation
from that fund estimated to be | 22 |
| expended for that fiscal year. This Section does not apply to | 23 |
| any
funds that are restricted by federal law to a specific use, | 24 |
| to any funds in
the Motor Fuel Tax Fund, the Hospital Provider | 25 |
| Fund, the Medicaid Provider Relief Fund, or the Reviewing Court | 26 |
| Alternative Dispute Resolution Fund, or to any
funds to which | 27 |
| subsection (f) of Section 20-40 of the Nursing and Advanced | 28 |
| Practice Nursing Act applies. Notwithstanding any
other | 29 |
| provision of this Section, for fiscal year 2004,
the total | 30 |
| transfer under this Section from the Road Fund or the State
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| Construction Account Fund shall not exceed the lesser of (i) 5% | 32 |
| of the revenues to be deposited
into the fund during that | 33 |
| fiscal year or (ii) 25% of the beginning balance in the fund.
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| For fiscal year 2005 through fiscal year 2007, no amounts may | 35 |
| be transferred under this Section from the Road Fund, the State | 36 |
| Construction Account Fund, the Criminal Justice Information |
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| Systems Trust Fund, the Wireless Service Emergency Fund, or the | 2 |
| Mandatory Arbitration Fund.
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| In determining the available balance in a fund, the | 4 |
| Governor
may include receipts, transfers into the fund, and | 5 |
| other
resources anticipated to be available in the fund in that | 6 |
| fiscal year.
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| The State Treasurer and Comptroller shall transfer the | 8 |
| amounts designated
under this Section as soon as may be | 9 |
| practicable after receiving the direction
to transfer from the | 10 |
| Governor.
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| (b) This Section does not apply to any fund established | 12 |
| under the Community Senior Services and Resources Act.
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| (c) This Section does not apply to the Demutualization | 14 |
| Trust Fund established under the Uniform Disposition of | 15 |
| Unclaimed Property Act.
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| (Source: P.A. 93-32, eff. 6-20-03; 93-659, eff. 2-3-04; 93-674, | 17 |
| eff. 6-10-04; 93-714, eff. 7-12-04; 93-801, eff. 7-22-04; | 18 |
| 93-839, eff. 7-30-04; 93-1054, eff. 11-18-04; 93-1067, eff. | 19 |
| 1-15-05.)
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| (30 ILCS 105/8j)
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| Sec. 8j. Allocation and transfer of fee receipts to General | 22 |
| Revenue Fund.
If and only if any one or more of Senate Bills | 23 |
| 774, 841, 842, and 1903 of
the 93rd General Assembly become | 24 |
| law, Notwithstanding any other law to the
contrary, additional | 25 |
| amounts generated by the new and increased fees created
or | 26 |
| authorized by Public Acts 93-22, 93-23, 93-24, and 93-32
these | 27 |
| amendatory Acts of the 93rd General Assembly
this amendatory | 28 |
| Act of the 93rd General Assembly and by Senate Bill 774,
Senate | 29 |
| Bill 841, and Senate Bill 842 of the 93rd General Assembly, if | 30 |
| those
bills become law, shall be allocated between the fund | 31 |
| otherwise entitled to
receive the fee and the General Revenue | 32 |
| Fund by the Governor's Office of
Management and Budget
Bureau | 33 |
| of the Budget . In determining the amount of
the allocation to | 34 |
| the General Revenue Fund, the Director of the Governor's
Office | 35 |
| of Management and Budget
Bureau of the Budget shall calculate
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| whether the available resources in the fund are sufficient to | 2 |
| satisfy the
unexpended and unreserved appropriations from the | 3 |
| fund for the fiscal year.
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| In calculating the available resources in a fund, the | 5 |
| Director of the
Governor's Office of Management and Budget
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| Bureau of the Budget may
include receipts, transfers into the | 7 |
| fund, and other resources anticipated to
be available in the | 8 |
| fund in that fiscal year.
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| Upon determining the amount of an allocation to the General | 10 |
| Revenue Fund
under this Section, the Director of the Governor's | 11 |
| Office of Management
and Budget
Bureau of the Budget may direct | 12 |
| the State Treasurer and
Comptroller to transfer the amount of | 13 |
| that allocation from the fund in which
the fee amounts have | 14 |
| been deposited to the General Revenue Fund; provided,
however, | 15 |
| that the Director shall not direct the transfer of any amount | 16 |
| that
would have the effect of reducing the available resources | 17 |
| in the fund to an
amount less than the amount remaining | 18 |
| unexpended and unreserved from the total
appropriation from | 19 |
| that fund for that fiscal year.
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| The State Treasurer and Comptroller shall transfer the | 21 |
| amounts designated
under this Section as soon as may be | 22 |
| practicable after receiving the direction
to transfer from the | 23 |
| Director of the Governor's Office of Management and
Budget
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| Bureau of the Budget .
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| This Section does not apply to the Demutualization Trust | 26 |
| Fund established under the Uniform Disposition of Unclaimed | 27 |
| Property Act.
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| (Source: P.A. 93-25, eff. 6-20-03; 93-32, eff. 6-20-03; revised | 29 |
| 8-21-03.)
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| Section 99. Effective date. This Act takes effect upon | 31 |
| becoming law.
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