093_SB1096

 
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 1        AN ACT concerning unclaimed property.

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

 4        Section 5.  The Uniform Disposition of Unclaimed Property
 5    Act is amended by changing Sections 10.6 and  11  and  adding
 6    Section 3a as follows:

 7        (765 ILCS 1025/3a new)
 8        Sec.  3a.  Unclaimed demutualization proceeds.  Unclaimed
 9    property  payable  or  distributable  in  the  course  of   a
10    demutualization of an insurance company is presumed abandoned
11    5  years  after  the  earlier of (i) the date of last contact
12    with the policyholder or (ii) the date  the  property  became
13    payable or distributable.

14        (765 ILCS 1025/10.6)
15        Sec. 10.6.  Gift certificates and gift cards.
16        (a)  This  Act applies to a gift certificate or gift card
17    only if:
18             (i)  the gift certificate or gift card  contains  an
19        expiration date or expiration period; and
20             (ii)  none of the exceptions in this Section apply.
21        (b)  This  Act  does  not  apply to a gift certificate or
22    gift card that contains  an  expiration  date  or  expiration
23    period if:
24             (i)  the  gift  certificate  or gift card was issued
25        before the effective date of this amendatory Act  of  the
26        92nd General Assembly; and
27             (ii)  it is the policy and practice of the issuer of
28        the  gift  certificate  or  gift  card  to honor the gift
29        certificate or gift card after its expiration date or the
30        end of its expiration period and the issuer posts written
 
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 1        notice of the policy and practice at locations  at  which
 2        the  issuer  sells  gift certificates or gift cards.  The
 3        written notice shall be an original or a copy of a notice
 4        that the State Treasurer shall  produce  and  provide  to
 5        issuers free of charge.
 6        (b-5)  Tax-exempt  nonprofit organizations, as defined in
 7    Section 501(c)(3) of the Internal Revenue  Code,  are  exempt
 8    from  the  requirement  to  report  and  remit  to  the State
 9    Treasurer gift certificates and  gift  cards  issued  by  the
10    nonprofit  organization  that  contain  an expiration date or
11    expiration period.  Upon the expiration date or  end  of  the
12    expiration  period  of a gift certificate or gift card issued
13    by the nonprofit organization, any unused  portion  shall  be
14    considered  an  unrestricted  donation  from the owner to the
15    nonprofit organization.
16        (c)  Nothing  in  this  Section   applies   to   a   gift
17    certificate or gift card if the value of the gift certificate
18    or  gift card was reported and remitted under this Act before
19    the effective date of this amendatory Act of the 92nd General
20    Assembly.
21    (Source: P.A. 92-487, eff. 8-23-01.)

22        (765 ILCS 1025/11) (from Ch. 141, par. 111)
23        Sec.  11.  Remittance   of   property.  (a)   Except   as
24    otherwise  provided  in  subsection  (c)  of Section 4, every
25    person  holding  funds  or  other   property,   tangible   or
26    intangible,  presumed  abandoned  under this Act shall report
27    and remit all abandoned property specified in the  report  to
28    the   State   Treasurer  with  respect  to  the  property  as
29    hereinafter provided.  The State  Treasurer  may  exempt  any
30    businesses  from  the  reporting requirement if he deems such
31    businesses unlikely to be holding unclaimed property.
32        (b)  The information shall be obtained  in  one  or  more
33    reports  as required by the State Treasurer.  The information
 
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 1    shall be verified and shall include:
 2             (1)  The  name,  social  security  or  federal   tax
 3        identification  number, if known, and last known address,
 4        including zip code, of each  person  appearing  from  the
 5        records  of the holder to be the owner of any property of
 6        the value of $25 or more presumed  abandoned  under  this
 7        Act;
 8             (2)  In  case  of  unclaimed funds of life insurance
 9        corporations  the  full  name  of  the  insured  and  any
10        beneficiary or  annuitant  and  the  last  known  address
11        according to the life insurance corporation's records;
12             (3)  The  date  when  the  property  became payable,
13        demandable, or returnable,  and  the  date  of  the  last
14        transaction  with the owner with respect to the property;
15        and
16             (4)  Other information  which  the  State  Treasurer
17        prescribes by rule as necessary for the administration of
18        this Act.
19        (c)  If the person holding property presumed abandoned is
20    a successor to other persons who previously held the property
21    for  the  owner,  or if the holder has changed his name while
22    holding the property, he shall file with his report all prior
23    known names and addresses of each holder of the property.
24        (d)  The report and remittance of the property  specified
25    in  the  report  shall  be  filed  by  banking organizations,
26    financial organizations, insurance companies other than  life
27    insurance  corporations,  and  governmental  entities  before
28    November  1  of  each  year as of June 30 next preceding. The
29    report and remittance of the property specified in the report
30    shall be filed by business associations, utilities, and  life
31    insurance  corporations  before  May  1  of  each  year as of
32    December 31 next preceding.  The Director  may  postpone  the
33    reporting date upon written request by any person required to
34    file a report.
 
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 1        (d-5)  Notwithstanding  the foregoing, currency exchanges
 2    shall be required to report and remit property  specified  in
 3    the  report within 30 days after the conclusion of its annual
 4    examination by the Department of Financial  Institutions.  As
 5    part   of   the  examination  of  a  currency  exchange,  the
 6    Department  of  Financial  Institutions  shall  instruct  the
 7    currency exchange to submit  a  complete  unclaimed  property
 8    report   using   the  State  Treasurer's  formatted  diskette
 9    reporting program or an alternative reporting format approved
10    by  the  State  Treasurer.  The   Department   of   Financial
11    Institutions  shall  provide  the  State  Treasurer  with  an
12    accounting  of  the money orders located in the course of the
13    annual examination including, where available, the amount  of
14    service  fees  deducted and the date of the conclusion of the
15    examination.
16        (e)  Before filing  the  annual  report,  the  holder  of
17    property  presumed abandoned under this Act shall communicate
18    with the owner at his last known address if  any  address  is
19    known  to  the  holder,  setting  forth the provisions hereof
20    necessary to occur in order to prevent abandonment from being
21    presumed. If the holder has not communicated with  the  owner
22    at  his  last  known  address  at  least  120 days before the
23    deadline for filing the annual report, the holder shall mail,
24    at least 60 days before that  deadline,  a  letter  by  first
25    class  mail to the owner at his last known address unless any
26    address  is  shown  to  be  inaccurate,  setting  forth   the
27    provisions hereof necessary to prevent abandonment from being
28    presumed.   A  holder  or any party with owner information is
29    prohibited from charging a fee or service charge to an  owner
30    in order to prevent abandonment from being presumed.
31        (f)  Verification,  if  made  by  a partnership, shall be
32    executed  by  a  partner;  if  made  by   an   unincorporated
33    association  or  private  corporation,  by an officer; and if
34    made by a public corporation, by its chief fiscal officer.
 
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 1        (g)  Any person who has possession of property  which  he
 2    has  reason  to  believe  will be reportable in the future as
 3    unclaimed property, may report and deliver it  prior  to  the
 4    date  required  for  such  reporting  in accordance with this
 5    Section and is then relieved of responsibility as provided in
 6    Section 14.
 7        (h) (1)  Records pertaining  to  presumptively  abandoned
 8    property held by a trust division or trust department or by a
 9    trust  company,  or  affiliate  of  any of the foregoing that
10    provides   nondealer   corporate   custodial   services   for
11    securities or securities transactions,  organized  under  the
12    laws  of  this or another state or the United States shall be
13    retained  until  the  property  is  delivered  to  the  State
14    Treasurer.
15        As of January 1, 1998, this subdivision (h)(1) shall  not
16    be applicable unless the Department of Financial Institutions
17    has  commenced,  but  not  finalized,  an  examination of the
18    holder as of that date and the  property  is  included  in  a
19    final  examination  report  for  the  period  covered  by the
20    examination.
21        (2)  In the case of all other holders commencing  on  the
22    effective  date  of  this  amendatory  Act  of 1993, property
23    records for the period required for  presumptive  abandonment
24    plus  the 9 years immediately preceding the beginning of that
25    period shall be retained for 5 years after the  property  was
26    reportable.
27        (i)  The    State    Treasurer   may   promulgate   rules
28    establishing the format and media to be used by a  holder  in
29    submitting reports required under this Act.
30    (Source: P.A. 91-16, eff. 7-1-99; 92-271, eff. 8-7-01.)

31        Section  99.  Effective date.  This Act takes effect upon
32    becoming law.