Rep. Jack D. Franks

Filed: 2/25/2011

 

 


 

 


 
09700HB1791ham001LRB097 09572 AJO 51446 a

1
AMENDMENT TO HOUSE BILL 1791

2    AMENDMENT NO. ______. Amend House Bill 1791 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Uniform Disposition of Unclaimed Property
5Act is amended by changing Sections 11, 13, 14, 15, and 16 and
6by 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
10Section 4 and in subsection (k) of this Section, every person
11holding funds or other property, tangible or intangible,
12presumed abandoned under this Act shall report and remit all
13abandoned property specified in the report to the State
14Treasurer with respect to the property as hereinafter provided.
15The State Treasurer may exempt any businesses from the
16reporting requirement if he deems such businesses unlikely to

 

 

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1be holding unclaimed property.
2    (b) The information shall be obtained in one or more
3reports as required by the State Treasurer. The information
4shall 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
22successor to other persons who previously held the property for
23the owner, or if the holder has changed his name while holding
24the property, he shall file with his report all prior known
25names and addresses of each holder of the property.
26    (d) The report and remittance of the property specified in

 

 

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1the report shall be filed by banking organizations, financial
2organizations, insurance companies other than life insurance
3corporations, and governmental entities before November 1 of
4each year as of June 30 next preceding. The report and
5remittance of the property specified in the report shall be
6filed by business associations, utilities, and life insurance
7corporations before May 1 of each year as of December 31 next
8preceding. The Director may postpone the reporting date upon
9written request by any person required to file a report. The
10report and remittance of the property specified in the report
11for property subject to subsection (a) of Section 3a of this
12Act shall be filed before a date established by the State
13Treasurer that is on or after the later of: (i) 30 days after
14the effective date of this amendatory Act of the 94th General
15Assembly; or (ii) November 1, 2005.
16    (d-5) Notwithstanding the foregoing, currency exchanges
17shall be required to report and remit property specified in the
18report within 30 days after the conclusion of its annual
19examination by the Department of Financial Institutions. As
20part of the examination of a currency exchange, the Department
21of Financial Institutions shall instruct the currency exchange
22to submit a complete unclaimed property report using the State
23Treasurer's formatted diskette reporting program or an
24alternative reporting format approved by the State Treasurer.
25The Department of Financial Institutions shall provide the
26State Treasurer with an accounting of the money orders located

 

 

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1in the course of the annual examination including, where
2available, the amount of service fees deducted and the date of
3the conclusion of the examination.
4    (e) Before filing the annual report, the holder of property
5presumed abandoned under this Act shall communicate with the
6owner at his last known address if any address is known to the
7holder, setting forth the provisions hereof necessary to occur
8in order to prevent abandonment from being presumed. If the
9holder has not communicated with the owner at his last known
10address at least 120 days before the deadline for filing the
11annual report, the holder shall mail, at least 60 days before
12that deadline, a letter by first class mail to the owner at his
13last known address unless any address is shown to be
14inaccurate, setting forth the provisions hereof necessary to
15prevent abandonment from being presumed.
16    (f) Verification, if made by a partnership, shall be
17executed by a partner; if made by an unincorporated association
18or private corporation, by an officer; and if made by a public
19corporation, by its chief fiscal officer.
20    (g) Any person who has possession of property which he has
21reason to believe will be reportable in the future as unclaimed
22property, may report and deliver it prior to the date required
23for such reporting in accordance with this Section and is then
24relieved of responsibility as provided in Section 14.
25    (h) (1) Records pertaining to presumptively abandoned
26property held by a trust division or trust department or by a

 

 

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1trust company, or affiliate of any of the foregoing that
2provides nondealer corporate custodial services for securities
3or securities transactions, organized under the laws of this or
4another state or the United States shall be retained until the
5property is delivered to the State Treasurer.
6    As of January 1, 1998, this subdivision (h)(1) shall not be
7applicable unless the Department of Financial Institutions has
8commenced, but not finalized, an examination of the holder as
9of that date and the property is included in a final
10examination report for the period covered by the examination.
11    (2) In the case of all other holders commencing on the
12effective date of this amendatory Act of 1993, property records
13for the period required for presumptive abandonment plus the 9
14years immediately preceding the beginning of that period shall
15be retained for 5 years after the property was reportable.
16    (i) The State Treasurer may promulgate rules establishing
17the format and media to be used by a holder in submitting
18reports required under this Act.
19    (j) Other than the Notice to Owners required by Section 12
20and other discretionary means employed by the State Treasurer
21for notifying owners of the existence of abandoned property,
22the State Treasurer shall not disclose any information provided
23in reports filed with the State Treasurer or any information
24obtained in the course of an examination by the State Treasurer
25to any person other than governmental agencies for the purposes
26of returning abandoned property to its owners or to those

 

 

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1individuals who appear to be the owner of the property or
2otherwise have a valid claim to the property, unless written
3consent from the person entitled to the property is obtained by
4the State Treasurer.
5    (k) Upon notice to the State Treasurer that is filed with
6the annual report required by this Section, a county treasurer
7holding funds presumed abandoned under the Act may elect, upon
8express written authorization of the county board, to report
9but not remit those funds. A county board and a county
10treasurer that exercise the option to retain funds under this
11subsection (k) shall nonetheless complete an annual report that
12includes and describes the retained funds. A county treasurer
13who elects to report, but not remit, funds otherwise required
14to be remitted under this Section must deposit those funds in
15the county's treasury, provided that the county board must
16file, with the annual report sent to the State Treasurer, its
17pledge to make payment from the retained funds to an owner, in
18the event that the State Treasurer determines pursuant to the
19Act 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
23but who did not remit funds, as allowed by Section 11, every
24Every person who has filed a report as provided by Section 11
25shall deliver to the State Treasurer all abandoned property

 

 

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1specified in the annual report on the same date that the annual
2report is filed. Costs for communicating with owners by mail as
3required by subsection (e) of Section 11 may be deducted from
4the property specified in the report. Any such person, who
5pursuant to a statutory requirement, filed a bond or bonds
6pertaining to such abandoned property with the State Treasurer
7or his predecessor, may also deduct an amount equivalent to
8that part of the bond premium attributable to such abandoned
9property.
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
13to the State Treasurer, the state shall assume custody and
14shall be responsible for the safekeeping thereof. Any person
15who pays or delivers abandoned property to the State Treasurer
16under this Act is relieved of all liability to the extent of
17the value of the property so paid or delivered for any claim
18which then exists or which thereafter may arise or be made in
19respect to the property.
20    In the event legal proceedings are instituted by any other
21state or states in any state or federal court with respect to
22unclaimed funds or abandoned property previously paid,
23reported, or delivered to the State Treasurer, the holder shall
24give written notification to the State Treasurer and the
25Attorney General of this state of such proceedings within 10

 

 

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1days after service of process, or in the alternative at least
210 days before the return date or date on which an answer or
3similar pleading is due (or any extension thereof secured by
4the holder). The Attorney General may take such action as he
5deems necessary or expedient to protect the interests of the
6State of Illinois. The Attorney General by written notice prior
7to the return date or date on which an answer or similar
8pleading is due (or any extension thereof secured by the
9holder), but in any event in reasonably sufficient time for the
10holder to comply with the directions received, shall either
11direct the holder actively to defend in such proceedings or
12that no defense need be entered in such proceedings. If a
13direction is received from the Attorney General that the holder
14need not make a defense, such shall not preclude the holder
15from entering a defense in its own name if it should so choose.
16However, any defense made by the holder on its own initiative
17shall not entitle the holder to reimbursement for legal fees,
18costs and other expenses as is hereinafter provided in respect
19to defenses made pursuant to the directions of the Attorney
20General. If, after the holder has actively defended in such
21proceedings pursuant to a direction of the Attorney General, or
22has been notified in writing by the Attorney General that no
23defense need be made with respect to such funds, a judgment is
24entered against the holder for any amount paid to the State
25Treasurer under this Act, the State Treasurer shall, upon being
26furnished with proof of payment in satisfaction of such

 

 

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1judgment, reimburse the holder the amount so paid. The State
2Treasurer shall also reimburse the holder for any legal fees,
3costs and other directly related expenses incurred in legal
4proceedings undertaken pursuant to the direction of the
5Attorney 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
9abandoned funds pursuant to Section 11, a county treasurer
10shall be responsible for the safekeeping of the retained funds.
11In the event the owner steps forward to claim abandoned funds
12previously retained by the county treasurer, the county
13treasurer shall forward this claim to the State Treasurer who
14shall 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
17the State Treasurer under this Act, the owner is not entitled
18to receive income or other increments accruing thereafter,
19except that income accruing on unliquidated stock and mutual
20funds 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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1statute or court order, during which an action or proceeding
2may be commenced or enforced to obtain payment of a claim for
3money or recovery of property, shall not prevent the money or
4property from being presumed abandoned property, nor affect any
5duty to file a report required by this Act or to pay, report,
6or 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
91, 2012.".