Full Text of HB1791 97th General Assembly
HB1791ham001 97TH GENERAL ASSEMBLY | Rep. Jack D. Franks Filed: 2/25/2011
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| 1 | | AMENDMENT TO HOUSE BILL 1791
| 2 | | AMENDMENT NO. ______. Amend House Bill 1791 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Uniform Disposition of Unclaimed Property | 5 | | Act is amended by changing Sections 11, 13, 14, 15, and 16 and | 6 | | by adding Section 14a as follows:
| 7 | | (765 ILCS 1025/11) (from Ch. 141, par. 111)
| 8 | | Sec. 11. Report of holder.
| 9 | | (a) Except as otherwise provided in
subsection (c) of | 10 | | Section
4 and in subsection (k) of this Section , every person | 11 | | holding funds or other property, tangible or intangible,
| 12 | | presumed abandoned under this Act shall report and remit all | 13 | | abandoned property
specified in the report to the State | 14 | | Treasurer with respect to the property as
hereinafter provided. | 15 | | The State Treasurer may exempt any businesses from the
| 16 | | reporting requirement if he deems such businesses unlikely to |
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| 1 | | be holding
unclaimed property.
| 2 | | (b) The information shall be obtained in one or more | 3 | | reports as required
by the State Treasurer. The information | 4 | | shall be verified and shall include:
| 5 | | (1) the name, social security or federal tax | 6 | | identification number,
if known, and last known address, | 7 | | including zip code, of each
person appearing from the | 8 | | records of the holder to be the owner of any
property of | 9 | | the value of $25 or more presumed abandoned under this Act;
| 10 | | (2) in case of unclaimed funds of life insurance | 11 | | corporations the
full name of the insured and any | 12 | | beneficiary or annuitant and the
last known address | 13 | | according to the life insurance corporation's records;
| 14 | | (3) the date when the property became payable, | 15 | | demandable, or
returnable, and the date of the last | 16 | | transaction with the owner with
respect to the property; | 17 | | and
| 18 | | (4) other information which the State Treasurer | 19 | | prescribes by rule as
necessary for the administration of | 20 | | this Act.
| 21 | | (c) If the person holding property presumed abandoned is a | 22 | | successor
to other persons who previously held the property for | 23 | | the owner, or if
the holder has changed his name while holding | 24 | | the property, he shall
file with his report all prior known | 25 | | names and addresses of each holder
of the property.
| 26 | | (d) The report and remittance of the property specified in |
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| 1 | | the
report shall be filed by banking organizations, financial | 2 | | organizations,
insurance companies other than life insurance | 3 | | corporations, and governmental
entities before November 1 of | 4 | | each year as of June 30 next preceding.
The report and | 5 | | remittance of the property specified in the report shall be
| 6 | | filed by business associations, utilities, and life insurance | 7 | | corporations
before May 1 of each year as of December 31 next | 8 | | preceding. The Director may
postpone the reporting date upon | 9 | | written request by any person required to file
a report. The | 10 | | report and remittance of the property specified in the report | 11 | | for property subject to subsection (a) of Section 3a of this | 12 | | Act shall be filed before a date established by the State | 13 | | Treasurer that is on or after the later of: (i) 30 days after | 14 | | the effective date of this amendatory Act of the 94th General | 15 | | Assembly; or (ii) November 1, 2005.
| 16 | | (d-5) Notwithstanding the foregoing, currency exchanges | 17 | | shall be required
to report and remit property specified in the | 18 | | report within 30 days after the
conclusion of its annual | 19 | | examination by the Department of Financial
Institutions.
As | 20 | | part of the examination of a currency exchange, the Department | 21 | | of Financial
Institutions shall instruct the currency exchange | 22 | | to submit a complete
unclaimed
property report using the State | 23 | | Treasurer's formatted diskette reporting
program or an | 24 | | alternative reporting format approved by the State Treasurer.
| 25 | | The Department of Financial Institutions shall provide the | 26 | | State Treasurer with
an accounting of the money orders located |
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| 1 | | in the course of the annual
examination including, where | 2 | | available, the amount of service fees deducted and
the date of | 3 | | the
conclusion of the examination.
| 4 | | (e) Before filing the annual report, the holder of property | 5 | | presumed
abandoned under this Act shall communicate with the | 6 | | owner at his last known
address if any address is known to the | 7 | | holder, setting forth the provisions
hereof necessary to occur | 8 | | in order to prevent abandonment from being presumed.
If the | 9 | | holder has not communicated with the owner at his last known | 10 | | address at
least 120 days before the deadline for filing the | 11 | | annual report, the holder
shall mail, at least 60 days before | 12 | | that deadline, a letter by first class mail
to the owner at his | 13 | | last known address unless any address
is shown to be | 14 | | inaccurate, setting forth the provisions hereof
necessary to | 15 | | prevent abandonment from being presumed.
| 16 | | (f) Verification, if made by a partnership, shall be | 17 | | executed by a
partner; if made by an unincorporated association | 18 | | or private
corporation, by an officer; and if made by a public | 19 | | corporation, by its
chief fiscal officer.
| 20 | | (g) Any person who has possession of property which he has | 21 | | reason to
believe will be reportable in the future as unclaimed | 22 | | property, may
report and deliver it prior to the date required | 23 | | for such reporting in
accordance with this Section and is then | 24 | | relieved of responsibility as
provided in Section 14.
| 25 | | (h) (1) Records pertaining to presumptively abandoned | 26 | | property held by a
trust
division or trust department or by a |
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| 1 | | trust company, or affiliate of any of the
foregoing that | 2 | | provides nondealer corporate custodial services for securities
| 3 | | or securities transactions, organized under the laws of this or | 4 | | another state
or the United States shall be retained until the | 5 | | property is delivered to the
State Treasurer.
| 6 | | As of January 1, 1998, this subdivision (h)(1) shall not be | 7 | | applicable
unless the Department of Financial Institutions has | 8 | | commenced, but
not finalized, an examination of the
holder as | 9 | | of that date and the property is included in a final | 10 | | examination
report for the period covered by the examination.
| 11 | | (2) In the case of all other holders commencing on the | 12 | | effective date of
this amendatory Act of 1993, property records | 13 | | for the period required for
presumptive abandonment plus the 9 | 14 | | years immediately preceding the beginning of
that period shall | 15 | | be retained for 5 years after the property was reportable.
| 16 | | (i) The State Treasurer may promulgate rules establishing
| 17 | | the format and media to be used by a holder in submitting | 18 | | reports required
under this Act.
| 19 | | (j) Other than the Notice to Owners required by Section 12 | 20 | | and other
discretionary means employed by the State Treasurer | 21 | | for notifying owners of the
existence of abandoned property, | 22 | | the State Treasurer shall not disclose any
information provided | 23 | | in reports filed with the State Treasurer or any
information | 24 | | obtained in the course of an examination by the State Treasurer | 25 | | to
any person other than governmental agencies for the purposes | 26 | | of returning
abandoned property to its owners or to those |
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| 1 | | individuals who appear to be the
owner of the property or | 2 | | otherwise have a valid claim to the property, unless
written | 3 | | consent from the person entitled to the property is obtained by | 4 | | the
State Treasurer.
| 5 | | (k) Upon notice to the State Treasurer that is filed with | 6 | | the annual report required by this Section, a county treasurer | 7 | | holding funds presumed abandoned under the Act may elect, upon | 8 | | express written authorization of the county board, to report | 9 | | but not remit those funds. A county board and a county | 10 | | treasurer that exercise the option to retain funds under this | 11 | | subsection (k) shall nonetheless complete an annual report that | 12 | | includes and describes the retained funds. A county treasurer | 13 | | who elects to report, but not remit, funds otherwise required | 14 | | to be remitted under this Section must deposit those funds in | 15 | | the county's treasury, provided that the county board must | 16 | | file, with the annual report sent to the State Treasurer, its | 17 | | pledge to make payment from the retained funds to an owner, in | 18 | | the event that the State Treasurer determines pursuant to the | 19 | | Act that a payment is due to an owner. | 20 | | (Source: P.A. 93-531, eff. 8-14-03; 94-686, eff. 11-2-05.)
| 21 | | (765 ILCS 1025/13) (from Ch. 141, par. 113)
| 22 | | Sec. 13.
Except for a county treasurer who filed a report | 23 | | but who did not remit funds, as allowed by Section 11, every | 24 | | Every person who has filed a report as provided by Section 11
| 25 | | shall deliver to the State Treasurer all abandoned property |
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| 1 | | specified in the
annual report on the same date that the annual | 2 | | report is filed. Costs for
communicating with owners by mail as | 3 | | required by subsection (e) of Section 11
may be deducted from | 4 | | the property specified in the report. Any such person, who
| 5 | | pursuant to a statutory requirement, filed a bond or bonds | 6 | | pertaining to such
abandoned property with the State Treasurer | 7 | | or his predecessor, may also deduct
an amount equivalent to | 8 | | that part of the bond premium attributable to such
abandoned | 9 | | property.
| 10 | | (Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99.)
| 11 | | (765 ILCS 1025/14) (from Ch. 141, par. 114)
| 12 | | Sec. 14.
Upon the payment or delivery of abandoned property | 13 | | to the
State Treasurer, the state shall assume custody and | 14 | | shall be responsible for
the safekeeping thereof. Any person | 15 | | who pays or delivers abandoned property to
the State Treasurer | 16 | | under this Act is relieved of all liability to the extent
of | 17 | | the value of the property so paid or delivered for any claim | 18 | | which then
exists or which thereafter may arise or be made in | 19 | | respect to the property.
| 20 | | In the event legal proceedings are instituted by any other | 21 | | state or
states in any state or federal court with respect to | 22 | | unclaimed funds or
abandoned property previously paid , | 23 | | reported, or delivered to the State Treasurer, the
holder shall | 24 | | give written notification to the State Treasurer and the | 25 | | Attorney
General of this state of such proceedings within 10 |
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| 1 | | days after service of
process, or in the alternative at least | 2 | | 10 days before the return date or date
on which an answer or | 3 | | similar pleading is due (or any extension thereof secured
by | 4 | | the holder). The Attorney General may take such action as he | 5 | | deems
necessary or expedient to protect the interests of the | 6 | | State of Illinois.
The Attorney General by written notice prior | 7 | | to the return date or date on
which an answer or similar | 8 | | pleading is due (or any extension thereof
secured by the | 9 | | holder), but in any event in reasonably sufficient time for
the | 10 | | holder to comply with the directions received, shall either | 11 | | direct the
holder actively to defend in such proceedings or | 12 | | that no defense need be
entered in such proceedings. If a | 13 | | direction is received from the Attorney
General that the holder | 14 | | need not make a defense, such shall not preclude
the holder | 15 | | from entering a defense in its own name if it should so choose.
| 16 | | However, any defense made by the holder on its own initiative | 17 | | shall not
entitle the holder to reimbursement for legal fees, | 18 | | costs and other
expenses as is hereinafter provided in respect | 19 | | to defenses made pursuant to
the directions of the Attorney | 20 | | General. If, after the holder has actively
defended in such | 21 | | proceedings pursuant to a direction of the Attorney
General, or | 22 | | has been notified in writing by the Attorney General that no
| 23 | | defense need be made with respect to such funds, a judgment is | 24 | | entered
against the holder for any amount paid to the State | 25 | | Treasurer
under this Act, the State Treasurer shall, upon being | 26 | | furnished with proof of
payment in satisfaction of such |
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| 1 | | judgment, reimburse the holder the amount so
paid. The State | 2 | | Treasurer shall also reimburse the holder for any legal fees,
| 3 | | costs and other directly related expenses incurred in legal | 4 | | proceedings
undertaken pursuant to the direction of the | 5 | | Attorney General.
| 6 | | (Source: P.A. 91-16, eff. 7-1-99.)
| 7 | | (765 ILCS 1025/14a new) | 8 | | Sec. 14a. Retention of funds. Upon the retention of | 9 | | abandoned funds pursuant to Section 11, a county treasurer | 10 | | shall be responsible for the safekeeping of the retained funds. | 11 | | In the event the owner steps forward to claim abandoned funds | 12 | | previously retained by the county treasurer, the county | 13 | | treasurer shall forward this claim to the State Treasurer who | 14 | | shall review the claim and respond as provided in the Act.
| 15 | | (765 ILCS 1025/15) (from Ch. 141, par. 115)
| 16 | | Sec. 15.
When property is paid , reported, or delivered to | 17 | | the State Treasurer under this
Act, the owner is not entitled | 18 | | to receive income or other increments accruing
thereafter, | 19 | | except that income accruing on unliquidated stock and mutual | 20 | | funds
after July 1, 1993, may be paid to the owner.
| 21 | | (Source: P.A. 91-16, eff. 7-1-99 .)
| 22 | | (765 ILCS 1025/16) (from Ch. 141, par. 116)
| 23 | | Sec. 16.
The expiration of any period of time specified by |
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| 1 | | statute or court
order, during which an action or proceeding | 2 | | may be commenced or enforced to
obtain payment of a claim for | 3 | | money or recovery of property, shall not
prevent the money or | 4 | | property from being presumed abandoned property, nor
affect any | 5 | | duty to file a report required by this Act or to pay , report, | 6 | | or deliver
abandoned property to the State Treasurer.
| 7 | | (Source: P.A. 91-16, eff. 7-1-99.)
| 8 | | Section 99. Effective date. This Act takes effect January | 9 | | 1, 2012.".
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