Sen. Don Harmon

Filed: 5/30/2018

 

 


 

 


 
10000HB3806sam003LRB100 05230 HEP 41164 a

1
AMENDMENT TO HOUSE BILL 3806

2    AMENDMENT NO. ______. Amend House Bill 3806 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Revised Uniform Unclaimed Property Act is
5amended by changing Sections 15-201, 15-210, 15-503, 15-603,
615-1002.1, 15-1004, 15-1401, and 15-1402 as follows:
 
7    (765 ILCS 1026/15-201)
8    Sec. 15-201. When property presumed abandoned. Subject to
9Section 15-210, the following property is presumed abandoned if
10it is unclaimed by the apparent owner during the period
11specified below:
12        (1) a traveler's check, 15 years after issuance;
13        (2) a money order, 3 7 years after issuance;
14        (3) any instrument on which a financial organization or
15    business association is directly liable, 3 years after
16    issuance;

 

 

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1        (4) a state or municipal bond, bearer bond, or
2    original-issue-discount bond, 3 years after the earliest
3    of the date the bond matures or is called or the obligation
4    to pay the principal of the bond arises;
5        (5) a debt of a business association, 3 years after the
6    obligation to pay arises;
7        (6) financial organization deposits as follows:
8            (i) a demand deposit, 3 years after the date of the
9        last indication of interest in the property by the
10        apparent owner;
11            (ii) a savings deposit, 3 years after the date of
12        last indication of interest in the property by the
13        apparent owner;
14            (iii) a time deposit for which the owner has not
15        consented to automatic renewal of the time deposit, 5
16        years after the date of last indication of interest in
17        the property by the apparent owner;
18            (iv) an automatically renewable time deposit for
19        which the owner consented to the automatic renewal in a
20        record on file with the holder, 5 years after the date
21        of last indication of interest in the property by the
22        apparent owner, following the completion of the
23        initial term of the time deposit and one automatic
24        renewal term of the time deposit a demand, savings, or
25        time deposit, 3 years after the later of maturity or
26        the date of the last indication of interest in the

 

 

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1        property by the apparent owner, except for a deposit
2        that is automatically renewable, 3 years after its
3        initial date of maturity unless the apparent owner
4        consented in a record on file with the holder to
5        renewal at or about the time of the renewal;
6        (7) money or a credit owed to a customer as a result of
7    a retail business transaction, other than in-store credit
8    for returned merchandise, 3 years after the obligation
9    arose;
10        (8) an amount owed by an insurance company on a life or
11    endowment insurance policy or an annuity contract that has
12    matured or terminated, 3 years after the obligation to pay
13    arose under the terms of the policy or contract or, if a
14    policy or contract for which an amount is owed on proof of
15    death has not matured by proof of the death of the insured
16    or annuitant, as follows:
17            (A) with respect to an amount owed on a life or
18        endowment insurance policy, the earlier of:
19                (i) 3 years after the death of the insured; or
20                (ii) 2 years after the insured has attained, or
21            would have attained if living, the limiting age
22            under the mortality table on which the reserve for
23            the policy is based; and
24            (B) with respect to an amount owed on an annuity
25        contract, 3 years after the death of the annuitant.
26        (9) funds on deposit or held in trust pursuant to the

 

 

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1    Illinois Funeral or Burial Funds Act, the earliest of:
2            (A) 2 years after the date of death of the
3        beneficiary;
4            (B) one year after the date the beneficiary has
5        attained, or would have attained if living, the age of
6        105 where the holder does not know whether the
7        beneficiary is deceased;
8            (C) 40 years after the contract for prepayment was
9        executed;
10        (10) property distributable by a business association
11    in the course of dissolution or distributions from the
12    termination of a retirement plan, one year after the
13    property becomes distributable;
14        (11) property held by a court, including property
15    received as proceeds of a class action, 3 years after the
16    property becomes distributable;
17        (12) property held by a government or governmental
18    subdivision, agency, or instrumentality, including
19    municipal bond interest and unredeemed principal under the
20    administration of a paying agent or indenture trustee, 3
21    years after the property becomes distributable;
22        (13) wages, commissions, bonuses, or reimbursements to
23    which an employee is entitled, or other compensation for
24    personal services, including amounts held on a payroll
25    card, one year after the amount becomes payable;
26        (14) a deposit or refund owed to a subscriber by a

 

 

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1    utility, one year after the deposit or refund becomes
2    payable, except that any capital credits or patronage
3    capital retired, returned, refunded or tendered to a member
4    of an electric cooperative, as defined in Section 3.4 of
5    the Electric Supplier Act, or a telephone or
6    telecommunications cooperative, as defined in Section
7    13-212 of the Public Utilities Act, that has remained
8    unclaimed by the person appearing on the records of the
9    entitled cooperative for more than 2 years, shall not be
10    subject to, or governed by, any other provisions of this
11    Act, but rather shall be used by the cooperative for the
12    benefit of the general membership of the cooperative; and
13        (15) property not specified in this Section or Sections
14    15-202 through 15-208, the earlier of 3 years after the
15    owner first has a right to demand the property or the
16    obligation to pay or distribute the property arises.
17    Notwithstanding anything to the contrary in this Section
1815-201, and subject to Section 15-210, a deceased owner cannot
19indicate interest in his or her property. If the owner is
20deceased and the abandonment period for the owner's property
21specified in this Section 15-201 is greater than 2 years, then
22the property, other than an amount owed by an insurance company
23on a life or endowment insurance policy or an annuity contract
24that has matured or terminated, shall instead be presumed
25abandoned 2 years from the date of the owner's last indication
26of interest in the property.

 

 

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1(Source: P.A. 100-22, eff. 1-1-18; 100-566, eff. 1-1-18.)
 
2    (765 ILCS 1026/15-210)
3    Sec. 15-210. Indication of apparent owner interest in
4property.
5    (a) The period after which property is presumed abandoned
6is measured from the later of:
7        (1) the date the property is presumed abandoned under
8    this Article; or
9        (2) the latest indication of interest by the apparent
10    owner in the property.
11    (b) Under this Act, an indication of an apparent owner's
12interest in property includes:
13        (1) a record communicated by the apparent owner to the
14    holder or agent of the holder concerning the property or
15    the account in which the property is held;
16        (2) an oral communication by the apparent owner to the
17    holder or agent of the holder concerning the property or
18    the account in which the property is held, if the holder or
19    its agent contemporaneously makes and preserves a record of
20    the fact of the apparent owner's communication;
21        (3) presentment of a check or other instrument of
22    payment of a dividend, interest payment, or other
23    distribution, or evidence of receipt of a distribution made
24    by electronic or similar means, with respect to an account,
25    underlying security, or interest in a business

 

 

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1    association;
2        (4) activity directed by an apparent owner in the
3    account in which the property is held, including accessing
4    the account or information concerning the account, or a
5    direction by the apparent owner to increase, decrease, or
6    otherwise change the amount or type of property held in the
7    account;
8        (5) a deposit into or withdrawal from an account at a
9    financial organization, except for a recurring Automated
10    Clearing House (ACH) debit or credit previously authorized
11    by the apparent owner or an automatic reinvestment of
12    dividends or interest; and
13        (6) subject to subsection (e), payment of a premium on
14    an insurance policy.
15    (c) An action by an agent or other representative of an
16apparent owner, other than the holder acting as the apparent
17owner's agent, is presumed to be an action on behalf of the
18apparent owner.
19    (d) A communication with an apparent owner by a person
20other than the holder or the holder's representative is not an
21indication of interest in the property by the apparent owner
22unless a record of the communication evidences the apparent
23owner's knowledge of a right to the property.
24    (e) If the insured dies or the insured or beneficiary of an
25insurance policy otherwise becomes entitled to the proceeds
26before depletion of the cash surrender value of the policy by

 

 

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1operation of an automatic-premium-loan provision or other
2nonforfeiture provision contained in the policy, the operation
3does not prevent the policy from maturing or terminating.
4    (f) If the apparent owner has another property with the
5holder to which Section 201(6) applies, then activity directed
6by an apparent owner in any other accounts, including loan
7accounts, at a financial organization holding an inactive
8account of the apparent owner shall be an indication of
9interest in all such accounts if:
10            (A) the apparent owner engages in one or more of
11        the following activities:
12                (i) the apparent owner undertakes one or more
13            of the actions described in subsection (b) of this
14            Section regarding any of the other accounts the
15            apparent owner has with the financial organization
16            account that appears on a consolidated statement
17            with the inactive account;
18                (ii) the apparent owner increases or decreases
19            the amount of funds in any other account the
20            apparent owner has with the financial
21            organization; or
22                (iii) the apparent owner engages in any other
23            relationship with the financial organization,
24            including payment of any amounts due on a loan; and
25            (B) the foregoing apply so long as the mailing
26        address for the apparent owner in the financial

 

 

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1        organization's books and records is the same for both
2        the inactive account and the active account.
3(Source: P.A. 100-22, eff. 1-1-18.)
 
4    (765 ILCS 1026/15-503)
5    Sec. 15-503. Notice by administrator.
6    (a) The administrator shall give notice to an apparent
7owner that property presumed abandoned and appears to be owned
8by the apparent owner is held by the administrator under this
9Act.
10    (b) In providing notice under subsection (a), the
11administrator shall:
12        (1) except as otherwise provided in paragraph (2), send
13    written notice by first-class United States mail to each
14    apparent owner of property valued at $100 or more held by
15    the administrator, unless the administrator determines
16    that a mailing by first-class United States mail would not
17    be received by the apparent owner, and, in the case of a
18    security held in an account for which the apparent owner
19    had consented to receiving electronic mail from the holder,
20    send notice by electronic mail if the electronic-mail
21    address of the apparent owner is known to the administrator
22    instead of by first-class United States mail; or
23        (2) send the notice to the apparent owner's
24    electronic-mail address if the administrator does not have
25    a valid United States mail address for an apparent owner,

 

 

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1    but has an electronic-mail address that the administrator
2    does not know to be invalid.
3    (c) In addition to the notice under subsection (b), the
4administrator shall:
5        (1) publish every 6 months in at least one English
6    language newspaper of general circulation in each county in
7    this State notice of property held by the administrator
8    which must include:
9            (A) the total value of property received by the
10        administrator during the preceding 6-month period,
11        taken from the reports under Section 15-401;
12            (B) the total value of claims paid by the
13        administrator during the preceding 6-month period;
14            (C) the Internet web address of the unclaimed
15        property website maintained by the administrator;
16            (D) an a telephone number and electronic-mail
17        address to contact the administrator to inquire about
18        or claim property; and
19            (E) a statement that a person may access the
20        Internet by a computer to search for unclaimed property
21        and a computer may be available as a service to the
22        public at a local public library.
23        (2) The administrator shall maintain a website
24    accessible by the public and electronically searchable
25    which contains the names reported to the administrator of
26    apparent owners for whom property is being held by the

 

 

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1    administrator. The administrator need not list property on
2    such website when: no owner name was reported, a claim has
3    been initiated or is pending for the property, the
4    administrator has made direct contact with the apparent
5    owner of the property, and in other instances where the
6    administrator reasonably believes exclusion of the
7    property is in the best interests of both the State and the
8    owner of the property.
9    (d) The website or database maintained under subsection
10(c)(2) must include instructions for filing with the
11administrator a claim to property and an online claim form with
12instructions. The website may also provide a printable claim
13form with instructions for its use.
14    (e) Tax return identification of apparent owners of
15abandoned property.
16        (1) At least annually the administrator shall notify
17    the Department of Revenue of the names of persons appearing
18    to be owners of abandoned property under this Section. The
19    administrator shall also provide to the Department of
20    Revenue the social security numbers of the persons, if
21    available. The administrator does not need to notify the
22    Department of Revenue of the names or social security
23    numbers of apparent owners of abandoned property if he or
24    she reasonably believes that the Department of Revenue will
25    be unable to provide information that would provide
26    sufficient evidence to establish that the person in the

 

 

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1    Department of Revenue's records is the apparent owner of
2    unclaimed property in the custody of the administrator.
3        (2) The Department of Revenue shall notify the
4    administrator if any person under subsection (e)(1) has
5    filed an Illinois income tax return and shall provide the
6    administrator with the last known address of the person as
7    it appears in Department of Revenue records, except as
8    prohibited by federal law. The Department of Revenue may
9    also provide additional addresses for the same taxpayer
10    from the records of the Department, except as prohibited by
11    federal law.
12        (3) In order to facilitate the return of property under
13    this subsection, the administrator and the Department of
14    Revenue may enter into an interagency agreement concerning
15    protection of confidential information, data match rules,
16    and other issues.
17        (4) The administrator may deliver, as provided under
18    Section 15-904 of this Act, property or pay the amount
19    owing to a person matched under this Section without the
20    person filing a claim under Section 15-903 of this Act if
21    the following conditions are met:
22            (A) the value of the property that is owed the
23        person is $2,000 or less;
24            (B) the property is not either tangible property or
25        securities;
26            (C) the last known address for the person according

 

 

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1        to the Department of Revenue records is less than 12
2        months old; and
3            (D) the administrator has evidence sufficient to
4        establish that the person who appears in Department of
5        Revenue records is the owner of the property and the
6        owner currently resides at the last known address from
7        the Department of Revenue.
8        (5) If the value of the property that is owed the
9    person is greater than $2,000, or is tangible property or
10    securities the administrator shall provide notice to the
11    person, informing the person that he or she is the owner of
12    abandoned property held by the State and may file a claim
13    with the administrator for return of the property.
14    (f) The administrator may use additional databases to
15verify the identity of the person and that the person currently
16resides at the last known address. The administrator may
17utilize publicly and commercially available databases to find
18and update or add information for apparent owners of property
19held by the administrator.
20    (g) In addition to giving notice under subsection (b),
21publishing the information under subsection (c)(1) and
22maintaining the website or database under subsection (c)(2),
23the administrator may use other printed publication,
24telecommunication, the Internet, or other media to inform the
25public of the existence of unclaimed property held by the
26administrator.

 

 

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1(Source: P.A. 100-22, eff. 1-1-18; 100-566, eff. 1-1-18.)
 
2    (765 ILCS 1026/15-603)
3    Sec. 15-603. Payment or delivery of property to
4administrator.
5    (a) Except as otherwise provided in this Section, on filing
6a report under Section 15-401, the holder shall pay or deliver
7to the administrator the property described in the report.
8    (b) If property in a report under Section 15-401 is an
9automatically renewable time deposit and the holder determines
10that a penalty or forfeiture in the payment of interest would
11result from paying the deposit to the administrator at the time
12of the report, the date for reporting and delivering payment of
13the property to the administrator is extended until a penalty
14or forfeiture no longer would result from delivery of the
15property to the administrator. The holder shall report and
16deliver the property on the next regular date prescribed for
17reporting by the holder under this Act after this extended
18date, and the holder shall indicate in its report to the
19administrator that the property is being reported on an
20extended date pursuant to this subsection (b). payment, if the
21holder informs the administrator of the extended date.
22    (c) Tangible property in a safe-deposit box may not be
23delivered to the administrator until a mutually agreed upon
24date that is no sooner than 60 days after filing the report
25under Section 15-401.

 

 

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1    (d) If property reported to the administrator under Section
215-401 is a security, the administrator may:
3        (1) make an endorsement, instruction, or entitlement
4    order on behalf of the apparent owner to invoke the duty of
5    the issuer, its transfer agent, or the securities
6    intermediary to transfer the security; or
7        (2) dispose of the security under Section 15-702.
8    (e) If the holder of property reported to the administrator
9under Section 15-401 is the issuer of a certificated security,
10the administrator may obtain a replacement certificate in
11physical or book-entry form under Section 8-405 of the Uniform
12Commercial Code. An indemnity bond is not required.
13    (f) The administrator shall establish procedures for the
14registration, issuance, method of delivery, transfer, and
15maintenance of securities delivered to the administrator by a
16holder.
17    (g) An issuer, holder, and transfer agent or other person
18acting in good faith under this Section under instructions of
19and on behalf of the issuer or holder is not liable to the
20apparent owner for a claim arising with respect to property
21after the property has been delivered to the administrator.
22    (h) A holder is not required to deliver to the
23administrator a security identified by the holder as a
24non-freely transferable security in a report filed under
25Section 15-401. If the administrator or holder determines that
26a security is no longer a non-freely transferable security, the

 

 

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1holder shall report and deliver the security on the next
2regular date prescribed for delivery of securities by the
3holder under this Act. The holder shall make a determination
4annually whether a security identified in a report filed under
5Section 15-401 as a non-freely transferable security is no
6longer a non-freely transferable security.
7(Source: P.A. 100-22, eff. 1-1-18.)
 
8    (765 ILCS 1026/15-1002.1)
9    Sec. 15-1002.1. Examination of State-regulated financial
10organizations.
11    (a) Notwithstanding Section 15-1002 of this Act, for any
12financial organization for which the Department of Financial
13and Professional Regulation is the primary prudential
14regulator, the administrator shall not examine such financial
15institution unless the administrator has consulted with the
16Secretary of Financial and Professional Regulation and the
17Department of Financial and Professional Regulation has not
18examined such financial organization for compliance with this
19Act within the past 5 years. The Secretary of Financial and
20Professional Regulation may waive in writing the provisions of
21this subsection (a) in order to permit the administrator to
22examine a financial organization or group of financial
23organizations for compliance with this Act.
24    (b) Nothing in this Section shall be construed to prohibit
25the administrator from examining a financial organization for

 

 

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1which the Department of Financial and Professional Regulation
2is not the primary prudential regulator. Further, nothing in is
3this Act shall be construed to limit the authority of the
4Department of Financial and Professional Regulation to examine
5financial organizations.
6    (c) Notwithstanding Section 15-1002, the administrator
7may, at reasonable times and upon reasonable notice:
8        (1) examine the records of a financial organization
9    that is a federally chartered bank, savings bank, or credit
10    union if the administrator has reason to believe that the
11    financial organization has failed to comply with this Act;
12        (2) issue an administrative subpoena requiring the
13    financial organization or an agent of the financial
14    organization to make records available for examination;
15    and
16        (3) bring an action seeking judicial enforcement of the
17    subpoena.
18    The administrator may adopt administrative rules that
19specify conditions under which the administrator has a reason
20to believe that a financial organization is not in compliance
21with this Act.
22(Source: P.A. 100-22, eff. 1-1-18; 100-566, eff. 1-1-18.)
 
23    (765 ILCS 1026/15-1004)
24    Sec. 15-1004. Records obtained in examination. Records
25obtained and records, including work papers, compiled by the

 

 

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1administrator or administrator's agent in the course of
2conducting an examination under Section 15-1002 or Section
315-1002.1:
4        (1) are subject to the confidentiality and security
5    provisions of Article 14 and are exempt from disclosure
6    under the Freedom of Information Act;
7        (2) may be used by the administrator in an action to
8    collect property or otherwise enforce this Act;
9        (3) may be used in a joint examination conducted with
10    another state, the United States, a foreign country or
11    subordinate unit of a foreign country, or any other
12    governmental entity if the governmental entity conducting
13    the examination is legally bound to maintain the
14    confidentiality and security of information obtained from
15    a person subject to examination in a manner substantially
16    equivalent to Article 14;
17        (4) may be disclosed, on request, to the person that
18    administers the unclaimed property law of another state for
19    that state's use in circumstances equivalent to
20    circumstances described in this Article, if the other state
21    is required to maintain the confidentiality and security of
22    information obtained in a manner substantially equivalent
23    to Article 14;
24        (5) must be produced by the administrator under an
25    administrative or judicial subpoena or administrative or
26    court order; and

 

 

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1        (6) must be produced by the administrator on request of
2    the person subject to the examination in an administrative
3    or judicial proceeding relating to the property.
4(Source: P.A. 100-22, eff. 1-1-18.)
 
5    (765 ILCS 1026/15-1401)
6    Sec. 15-1401. Confidential information.
7    (a) Except as otherwise provided in this Section,
8information that is confidential under law of this State other
9than this Act, another state, or the United States, including
10"private information" as defined in the Freedom of Information
11Act and "personal information" as defined in the Personal
12Information Protection Act, continues to be confidential when
13disclosed or delivered under this Act to the administrator or
14administrator's agent.
15    (b) Information provided in reports filed pursuant to
16Section 15-401, information obtained in the course of an
17examination pursuant to Section 15-1002 or Section 15-1002.1,
18and the database required by Section 15-503 is exempt from
19disclosure under the Freedom of Information Act.
20    (c) If reasonably necessary to enforce or implement this
21Act, the administrator or the administrator's agent may
22disclose confidential information concerning property held by
23the administrator or the administrator's agent to:
24        (1) an apparent owner or the apparent owner's
25    representative under the Probate Act of 1975, attorney,

 

 

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1    other legal representative, or relative;
2        (2) the representative under the Probate Act of 1975,
3    other legal representative, relative of a deceased
4    apparent owner, or a person entitled to inherit from the
5    deceased apparent owner;
6        (3) another department or agency of this State or the
7    United States;
8        (4) the person that administers the unclaimed property
9    law of another state, if the other state accords
10    substantially reciprocal privileges to the administrator
11    of this State if the other state is required to maintain
12    the confidentiality and security of information obtained
13    in a manner substantially equivalent to Article 14;
14        (5) a person subject to an examination as required by
15    Section 15-1004; and
16        (6) an agent of the administrator.
17    (d) The administrator may include on the website or in the
18database the names and addresses of apparent owners of property
19held by the administrator as provided in Section 15-503. The
20administrator may include in published notices, printed
21publications, telecommunications, the Internet, or other media
22and on the website or in the database additional information
23concerning the apparent owner's property if the administrator
24believes the information will assist in identifying and
25returning property to the owner and does not disclose personal
26information as defined in the Personal Information Protection

 

 

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1Act.
2    (e) The administrator and the administrator's agent may not
3use confidential information provided to them or in their
4possession except as expressly authorized by this Act or
5required by law other than this Act.
6(Source: P.A. 100-22, eff. 1-1-18; 100-566, eff. 1-1-18.)
 
7    (765 ILCS 1026/15-1402)
8    Sec. 15-1402. Confidentiality agreement. A person to be
9examined under Section 15-1002 or Section 15-1002.1 may
10require, as a condition of disclosure of the records of the
11person to be examined, that the administrator or the
12administrator's agent execute and deliver to the person to be
13examined a confidentiality agreement that:
14        (1) is in a form that is reasonably satisfactory to the
15    administrator; and
16        (2) requires the person having access to the records to
17    comply with the provisions of this Article applicable to
18    the person.
19(Source: P.A. 100-22, eff. 1-1-18.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.".