Illinois General Assembly - Full Text of SB0338
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Full Text of SB0338  102nd General Assembly

SB0338 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB0338

 

Introduced 2/19/2021, by Sen. Rachelle Crowe

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the State Treasurer Act. Repeals provisions regarding transfer of power; transfer of personnel; transfer of property; and rules and standards. Amends the Revised Uniform Unclaimed Property Act. Changes the definition of "virtual currency". Provides that a money order is presumed abandoned if it is unclaimed by the apparent owner 3 (rather than 7) years after issuance. Provides that virtual currency is presumed abandoned if it is unclaimed by the apparent owner 5 years after the last indication of interest in the property. Provides that a business association who has no reportable property shall so report to the administrator under specified circumstances. Provides that the administrator does not need to notify the Department of Revenue of the names or social security numbers of apparent owners of abandoned property if the administrator reasonably believes that the Department of Revenue will be unable to provide information that would provide sufficient evidence to establish that the person in the Department of Revenue's records is the apparent owner of unclaimed property in the custody of the administrator. Includes a provision regarding identification of apparent owners of abandoned property using other State databases. Provides that if property reported to the administrator is virtual currency, the holder shall liquidate the virtual currency and remit the proceeds to the administrator. Makes changes to provisions regarding: when tax-deferred and tax-exempt retirement accounts presumed abandoned; United States savings bonds; crediting income or gain to owner's account; and action by a person whose claim is denied.


LRB102 10796 LNS 16126 b

 

 

A BILL FOR

 

SB0338LRB102 10796 LNS 16126 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Treasurer Act is amended by changing
5Sections 0.02 and 0.03 as follows:
 
6    (15 ILCS 505/0.02)
7    Sec. 0.02. Transfer of powers. The rights, powers, duties,
8and functions vested in the Department of Financial
9Institutions to administer the Uniform Disposition of
10Unclaimed Property Act (superseded by the Revised Uniform
11Unclaimed Property Act) are transferred to the State Treasurer
12on July 1, 1999; provided, however, that the rights, powers,
13duties, and functions involving the examination of the records
14of any person that the State Treasurer has reason to believe
15has failed to report properly under this Act shall be
16transferred to the Office of Banks and Real Estate if the
17person is regulated by the Office of Banks and Real Estate
18under the Illinois Banking Act, the Corporate Fiduciary Act,
19the Foreign Banking Office Act, the Illinois Savings and Loan
20Act of 1985, or the Savings Bank Act and shall be retained by
21the Department of Financial Institutions if the person is
22doing business in the State under the supervision of the
23Department of Financial Institutions, the National Credit

 

 

SB0338- 2 -LRB102 10796 LNS 16126 b

1Union Administration, the Office of Thrift Supervision, or the
2Comptroller of the Currency.
3(Source: P.A. 100-22, eff. 1-1-18.)
 
4    (15 ILCS 505/0.03)
5    Sec. 0.03. Transfer of personnel.
6    (a) Except as provided in subsection (b), personnel
7employed by the Department of Financial Institutions on June
830, 1999 to perform duties pertaining to the administration of
9the Uniform Disposition of Unclaimed Property Act (superseded
10by the Revised Uniform Unclaimed Property Act) are transferred
11to the State Treasurer on July 1, 1999.
12    (b) In the case of a person employed by the Department of
13Financial Institutions to perform both duties pertaining to
14the administration of the Uniform Disposition of Unclaimed
15Property Act (superseded by the Revised Uniform Unclaimed
16Property Act) and duties pertaining to a function retained by
17the Department of Financial Institutions, the State Treasurer,
18in consultation with the Director of Financial Institutions,
19shall determine whether to transfer the employee to the Office
20of the State Treasurer; until this determination has been
21made, the transfer shall not take effect.
22    (c) The rights of State employees, the State, and its
23agencies under the Personnel Code and applicable collective
24bargaining agreements and retirement plans are not affected by
25this amendatory Act of 1999, except that all positions

 

 

SB0338- 3 -LRB102 10796 LNS 16126 b

1transferred to the State Treasurer shall be subject to the
2State Treasurer Employment Code effective July 1, 2000.
3    All transferred employees who are members of collective
4bargaining units shall retain their seniority, continuous
5service, salary, and accrued benefits. During the pendency of
6the existing collective bargaining agreement, the rights
7provided for under that agreement and memoranda and
8supplements to that agreement, including but not limited to,
9the rights of employees performing duties pertaining to the
10administration of the Uniform Disposition of Unclaimed
11Property Act (superseded by the Revised Uniform Unclaimed
12Property Act) to positions in other State agencies and the
13right of employees in other State agencies covered by the
14agreement to positions performing duties pertaining to the
15administration of the Uniform Disposition of Unclaimed
16Property Act (superseded by the Revised Uniform Unclaimed
17Property Act), shall not be abridged.
18    The State Treasurer shall continue to honor during their
19pendency all bargaining agreements in effect at the time of
20the transfer and to recognize all collective bargaining
21representatives for the employees who perform or will perform
22functions transferred by this amendatory Act of 1999. For all
23purposes with respect to the management of the existing
24agreement and the negotiation and management of any successor
25agreements, the State Treasurer shall be deemed to be the
26employer of employees who perform or will perform functions

 

 

SB0338- 4 -LRB102 10796 LNS 16126 b

1transferred to the Office of the State Treasurer by this
2amendatory Act of 1999; provided that the Illinois Department
3of Central Management Services shall be a party to any
4grievance or arbitration proceeding held pursuant to the
5provisions of the collective bargaining agreement which
6involves the movement of employees from the Office of the
7State Treasurer to an agency under the jurisdiction of the
8Governor covered by the agreement.
9(Source: P.A. 100-22, eff. 1-1-18.)
 
10    Section 10. The Revised Uniform Unclaimed Property Act is
11amended by changing Sections 15-102, 15-201, 15-202, 15-213,
1215-401, 15-503, 15-603, 15-607, and 15-906 as follows:
 
13    (765 ILCS 1026/15-102)
14    Sec. 15-102. Definitions. In this Act:
15        (1) "Administrator" means the State Treasurer.
16        (2) "Administrator's agent" means a person with which
17    the administrator contracts to conduct an examination
18    under Article 10 on behalf of the administrator. The term
19    includes an independent contractor of the person and each
20    individual participating in the examination on behalf of
21    the person or contractor.
22        (2.5) (Blank).
23        (3) "Apparent owner" means a person whose name appears
24    on the records of a holder as the owner of property held,

 

 

SB0338- 5 -LRB102 10796 LNS 16126 b

1    issued, or owing by the holder.
2        (4) "Business association" means a corporation, joint
3    stock company, investment company, unincorporated
4    association, joint venture, limited liability company,
5    business trust, trust company, land bank, safe deposit
6    company, safekeeping depository, financial organization,
7    insurance company, federally chartered entity, utility,
8    sole proprietorship, or other business entity, whether or
9    not for profit.
10        (5) "Confidential information" means information that
11    is "personal information" under the Personal Information
12    Protection Act, "private information" under the Freedom of
13    Information Act or personal information contained within
14    public records, the disclosure of which would constitute a
15    clearly unwarranted invasion of personal privacy, unless
16    the disclosure is consented to in writing by the
17    individual subjects of the information as provided in the
18    Freedom of Information Act.
19        (6) "Domicile" means:
20            (A) for a corporation, the state of its
21        incorporation;
22            (B) for a business association whose formation
23        requires a filing with a state, other than a
24        corporation, the state of its filing;
25            (C) for a federally chartered entity or an
26        investment company registered under the Investment

 

 

SB0338- 6 -LRB102 10796 LNS 16126 b

1        Company Act of 1940, the state of its home office; and
2            (D) for any other holder, the state of its
3        principal place of business.
4        (7) "Electronic" means relating to technology having
5    electrical, digital, magnetic, wireless, optical,
6    electromagnetic, or similar capabilities.
7        (8) "Electronic mail" means a communication by
8    electronic means which is automatically retained and
9    stored and may be readily accessed or retrieved.
10        (8.5) "Escheat fee" means any charge imposed solely by
11    virtue of property being reported as presumed abandoned.
12        (9) "Financial organization" means a bank, savings
13    bank, foreign bank, corporate fiduciary, currency
14    exchange, money transmitter, or credit union.
15        (10) "Game-related digital content" means digital
16    content that exists only in an electronic game or
17    electronic-game platform. The term:
18            (A) includes:
19                (i) game-play currency such as a virtual
20            wallet, even if denominated in United States
21            currency; and
22                (ii) the following if for use or redemption
23            only within the game or platform or another
24            electronic game or electronic-game platform:
25                    (I) points sometimes referred to as gems,
26                tokens, gold, and similar names; and

 

 

SB0338- 7 -LRB102 10796 LNS 16126 b

1                    (II) digital codes; and
2            (B) does not include an item that the issuer:
3                (i) permits to be redeemed for use outside a
4            game or platform for:
5                    (I) money; or
6                    (II) goods or services that have more than
7                minimal value; or
8                (ii) otherwise monetizes for use outside a
9            game or platform.
10        (11) "Gift card" means a record evidencing a promise
11    made for consideration by the seller or issuer of the
12    record that goods, services, or money will be provided to
13    the owner of the record to the value or amount shown in the
14    record that is either:
15            (A) a record:
16                (i) issued on a prepaid basis primarily for
17            personal, family, or household purposes to a
18            consumer in a specified amount;
19                (ii) the value of which does not expire;
20                (iii) that is not subject to a dormancy,
21            inactivity, or post-sale service fee;
22                (iv) that is redeemable upon presentation for
23            goods or services; and
24                (v) that, unless required by law, may not be
25            redeemed for or converted into money or otherwise
26            monetized by the issuer; or

 

 

SB0338- 8 -LRB102 10796 LNS 16126 b

1            (B) a prepaid commercial mobile radio service, as
2        defined in 47 CFR C.F.R. 20.3, as amended.
3        (12) "Holder" means a person obligated to hold for the
4    account of, or to deliver or pay to, the owner, property
5    subject to this Act.
6        (13) "Insurance company" means an association,
7    corporation, or fraternal or mutual-benefit organization,
8    whether or not for profit, engaged in the business of
9    providing life endowments, annuities, or insurance,
10    including accident, burial, casualty, credit-life,
11    contract-performance, dental, disability, fidelity, fire,
12    health, hospitalization, illness, life, malpractice,
13    marine, mortgage, surety, wage-protection, and
14    worker-compensation insurance.
15        (14) "Loyalty card" means a record given without
16    direct monetary consideration under an award, reward,
17    benefit, loyalty, incentive, rebate, or promotional
18    program which may be used or redeemed only to obtain goods
19    or services or a discount on goods or services. The term
20    does not include a record that may be redeemed for money or
21    otherwise monetized by the issuer.
22        (15) "Mineral" means gas, oil, coal, oil shale, other
23    gaseous liquid or solid hydrocarbon, cement material, sand
24    and gravel, road material, building stone, chemical raw
25    material, gemstone, fissionable and nonfissionable ores,
26    colloidal and other clay, steam and other geothermal

 

 

SB0338- 9 -LRB102 10796 LNS 16126 b

1    resources, and any other substance defined as a mineral by
2    law of this State other than this Act.
3        (16) "Mineral proceeds" means an amount payable for
4    extraction, production, or sale of minerals, or, on the
5    abandonment of the amount, an amount that becomes payable
6    after abandonment. The term includes an amount payable:
7            (A) for the acquisition and retention of a mineral
8        lease, including a bonus, royalty, compensatory
9        royalty, shut-in royalty, minimum royalty, and delay
10        rental;
11            (B) for the extraction, production, or sale of
12        minerals, including a net revenue interest, royalty,
13        overriding royalty, extraction payment, and production
14        payment; and
15            (C) under an agreement or option, including a
16        joint-operating agreement, unit agreement, pooling
17        agreement, and farm-out agreement.
18        (17) "Money order" means a payment order for a
19    specified amount of money. The term includes an express
20    money order and a personal money order on which the
21    remitter is the purchaser.
22        (18) "Municipal bond" means a bond or evidence of
23    indebtedness issued by a municipality or other political
24    subdivision of a state.
25        (19) "Net card value" means the original purchase
26    price or original issued value of a stored-value card,

 

 

SB0338- 10 -LRB102 10796 LNS 16126 b

1    plus amounts added to the original price or value, minus
2    amounts used and any service charge, fee, or dormancy
3    charge permitted by law.
4        (20) "Non-freely transferable security" means a
5    security that cannot be delivered to the administrator by
6    the Depository Trust Clearing Corporation or similar
7    custodian of securities providing post-trade clearing and
8    settlement services to financial markets or cannot be
9    delivered because there is no agent to effect transfer.
10    The term includes a worthless security.
11        (21) "Owner", unless the context otherwise requires,
12    means a person that has a legal, beneficial, or equitable
13    interest in property subject to this Act or the person's
14    legal representative when acting on behalf of the owner.
15    The term includes:
16            (A) a depositor, for a deposit;
17            (B) a beneficiary, for a trust other than a
18        deposit in trust;
19            (C) a creditor, claimant, or payee, for other
20        property; and
21            (D) the lawful bearer of a record that may be used
22        to obtain money, a reward, or a thing of value.
23        (22) "Payroll card" means a record that evidences a
24    payroll-card account as defined in Regulation E, 12 CFR
25    Part 1005, as amended.
26        (23) "Person" means an individual, estate, business

 

 

SB0338- 11 -LRB102 10796 LNS 16126 b

1    association, public corporation, government or
2    governmental subdivision, agency, or instrumentality, or
3    other legal entity, whether or not for profit.
4        (24) "Property" means tangible property described in
5    Section 15-201 or a fixed and certain interest in
6    intangible property held, issued, or owed in the course of
7    a holder's business or by a government, governmental
8    subdivision, agency, or instrumentality. The term:
9            (A) includes all income from or increments to the
10        property;
11            (B) includes property referred to as or evidenced
12        by:
13                (i) money, virtual currency, interest, or a
14            dividend, check, draft, deposit, or payroll card;
15                (ii) a credit balance, customer's overpayment,
16            stored-value card, security deposit, refund,
17            credit memorandum, unpaid wage, unused ticket for
18            which the issuer has an obligation to provide a
19            refund, mineral proceeds, or unidentified
20            remittance;
21                (iii) a security except for:
22                    (I) a worthless security; or
23                    (II) a security that is subject to a lien,
24                legal hold, or restriction evidenced on the
25                records of the holder or imposed by operation
26                of law, if the lien, legal hold, or

 

 

SB0338- 12 -LRB102 10796 LNS 16126 b

1                restriction restricts the holder's or owner's
2                ability to receive, transfer, sell, or
3                otherwise negotiate the security;
4                (iv) a bond, debenture, note, or other
5            evidence of indebtedness;
6                (v) money deposited to redeem a security, make
7            a distribution, or pay a dividend;
8                (vi) an amount due and payable under an
9            annuity contract or insurance policy;
10                (vii) an amount distributable from a trust or
11            custodial fund established under a plan to provide
12            health, welfare, pension, vacation, severance,
13            retirement, death, stock purchase, profit-sharing,
14            employee-savings, supplemental-unemployment
15            insurance, or a similar benefit; and
16                (viii) any instrument on which a financial
17            organization or business association is directly
18            liable; and
19            (C) does not include:
20                (i) game-related digital content;
21                (ii) a loyalty card;
22                (iii) a gift card; or
23                (iv) funds on deposit or held in trust
24            pursuant to Section 16 of the Illinois Pre-Need
25            Cemetery Sales Act.
26        (25) "Putative holder" means a person believed by the

 

 

SB0338- 13 -LRB102 10796 LNS 16126 b

1    administrator to be a holder, until the person pays or
2    delivers to the administrator property subject to this Act
3    or the administrator or a court makes a final
4    determination that the person is or is not a holder.
5        (26) "Record" means information that is inscribed on a
6    tangible medium or that is stored in an electronic or
7    other medium and is retrievable in perceivable form. The
8    phrase "records of the holder" includes records maintained
9    by a third party that has contracted with the holder.
10        (27) "Security" means:
11            (A) a security as defined in Article 8 of the
12        Uniform Commercial Code;
13            (B) a security entitlement as defined in Article 8
14        of the Uniform Commercial Code, including a customer
15        security account held by a registered broker-dealer,
16        to the extent the financial assets held in the
17        security account are not:
18                (i) registered on the books of the issuer in
19            the name of the person for which the broker-dealer
20            holds the assets;
21                (ii) payable to the order of the person; or
22                (iii) specifically indorsed to the person; or
23            (C) an equity interest in a business association
24        not included in subparagraph (A) or (B).
25        (28) "Sign" means, with present intent to authenticate
26    or adopt a record:

 

 

SB0338- 14 -LRB102 10796 LNS 16126 b

1            (A) to execute or adopt a tangible symbol; or
2            (B) to attach to or logically associate with the
3        record an electronic symbol, sound, or process.
4        (29) "State" means a state of the United States, the
5    District of Columbia, the Commonwealth of Puerto Rico, the
6    United States Virgin Islands, or any territory or insular
7    possession subject to the jurisdiction of the United
8    States.
9        (30) "Stored-value card" means a card, code, or other
10    device that is:
11            (A) issued on a prepaid basis primarily for
12        personal, family, or household purposes to a consumer
13        in a specified amount, whether or not that amount may
14        be increased or reloaded in exchange for payment; and
15            (B) redeemable upon presentation at multiple
16        unaffiliated merchants for goods or services or usable
17        at automated teller machines; and
18        "Stored-value card" does not include a gift card,
19    payroll card, loyalty card, or game-related digital
20    content.
21        (31) "Utility" means a person that owns or operates
22    for public use a plant, equipment, real property,
23    franchise, or license for the following public services:
24            (A) transmission of communications or information;
25            (B) production, storage, transmission, sale,
26        delivery, or furnishing of electricity, water, steam,

 

 

SB0338- 15 -LRB102 10796 LNS 16126 b

1        or gas; or
2            (C) provision of sewage or septic services, or
3        trash, garbage, or recycling disposal.
4        (32) "Virtual currency" means any type of a digital
5    unit, including cryptocurrency, representation of value
6    used as a medium of exchange, unit of account, or a form of
7    digitally stored store of value, which does not have legal
8    tender status recognized by the United States. The term
9    does not include:
10            (A) the software or protocols governing the
11        transfer of the digital representation of value;
12            (B) game-related digital content; or
13            (C) a loyalty card or gift card.
14        (33) "Worthless security" means a security whose cost
15    of liquidation and delivery to the administrator would
16    exceed the value of the security on the date a report is
17    due under this Act.
18(Source: P.A. 100-22, eff. 1-1-18; 100-566, eff. 1-1-18;
19101-552, eff. 1-1-20.)
 
20    (765 ILCS 1026/15-201)
21    Sec. 15-201. When property presumed abandoned. Subject to
22Section 15-210, the following property is presumed abandoned
23if it is unclaimed by the apparent owner during the period
24specified below:
25        (1) a traveler's check, 15 years after issuance;

 

 

SB0338- 16 -LRB102 10796 LNS 16126 b

1        (2) a money order, 3 7 years after issuance;
2        (3) any instrument on which a financial organization
3    or business association is directly liable, 3 years after
4    issuance;
5        (4) a state or municipal bond, bearer bond, or
6    original-issue-discount bond, 3 years after the earliest
7    of the date the bond matures or is called or the obligation
8    to pay the principal of the bond arises;
9        (5) a debt of a business association, 3 years after
10    the obligation to pay arises;
11        (6) a demand, savings, or time deposit, 3 years after
12    the later of maturity or the date of the last indication of
13    interest in the property by the apparent owner, except for
14    a deposit that is automatically renewable, 3 years after
15    its initial date of maturity unless the apparent owner
16    consented in a record on file with the holder to renewal at
17    or about the time of the renewal;
18        (6.5) virtual currency, 5 years after the last
19    indication of interest in the property;
20        (7) money or a credit owed to a customer as a result of
21    a retail business transaction, other than in-store credit
22    for returned merchandise, 3 years after the obligation
23    arose;
24        (8) an amount owed by an insurance company on a life or
25    endowment insurance policy or an annuity contract that has
26    matured or terminated, 3 years after the obligation to pay

 

 

SB0338- 17 -LRB102 10796 LNS 16126 b

1    arose under the terms of the policy or contract or, if a
2    policy or contract for which an amount is owed on proof of
3    death has not matured by proof of the death of the insured
4    or annuitant, as follows:
5            (A) with respect to an amount owed on a life or
6        endowment insurance policy, the earlier of:
7                (i) 3 years after the death of the insured; or
8                (ii) 2 years after the insured has attained,
9            or would have attained if living, the limiting age
10            under the mortality table on which the reserve for
11            the policy is based; and
12            (B) with respect to an amount owed on an annuity
13        contract, 3 years after the death of the annuitant.
14        (9) funds on deposit or held in trust pursuant to the
15    Illinois Funeral or Burial Funds Act, the earliest of:
16            (A) 2 years after the date of death of the
17        beneficiary;
18            (B) one year after the date the beneficiary has
19        attained, or would have attained if living, the age of
20        105 where the holder does not know whether the
21        beneficiary is deceased;
22            (C) 40 years after the contract for prepayment was
23        executed, unless the apparent owner has indicated an
24        interest in the property more than 40 years after the
25        contract for prepayment was executed, in which case, 3
26        years after the last indication of interest in the

 

 

SB0338- 18 -LRB102 10796 LNS 16126 b

1        property by the apparent owner;
2        (10) property distributable by a business association
3    in the course of dissolution or distributions from the
4    termination of a retirement plan, one year after the
5    property becomes distributable;
6        (11) property held by a court, including property
7    received as proceeds of a class action, 3 years after the
8    property becomes distributable;
9        (12) property held by a government or governmental
10    subdivision, agency, or instrumentality, including
11    municipal bond interest and unredeemed principal under the
12    administration of a paying agent or indenture trustee, 3
13    years after the property becomes distributable;
14        (13) wages, commissions, bonuses, or reimbursements to
15    which an employee is entitled, or other compensation for
16    personal services, including amounts held on a payroll
17    card, one year after the amount becomes payable;
18        (14) a deposit or refund owed to a subscriber by a
19    utility, one year after the deposit or refund becomes
20    payable, except that any capital credits or patronage
21    capital retired, returned, refunded or tendered to a
22    member of an electric cooperative, as defined in Section
23    3.4 of the Electric Supplier Act, or a telephone or
24    telecommunications cooperative, as defined in Section
25    13-212 of the Public Utilities Act, that has remained
26    unclaimed by the person appearing on the records of the

 

 

SB0338- 19 -LRB102 10796 LNS 16126 b

1    entitled cooperative for more than 2 years, shall not be
2    subject to, or governed by, any other provisions of this
3    Act, but rather shall be used by the cooperative for the
4    benefit of the general membership of the cooperative; and
5        (15) property not specified in this Section or
6    Sections 15-202 through 15-208, the earlier of 3 years
7    after the owner first has a right to demand the property or
8    the obligation to pay or distribute the property arises.
9    Notwithstanding anything to the contrary in this Section
1015-201, and subject to Section 15-210, a deceased owner cannot
11indicate interest in his or her property. If the owner is
12deceased and the abandonment period for the owner's property
13specified in this Section 15-201 is greater than 2 years, then
14the property, other than an amount owed by an insurance
15company on a life or endowment insurance policy or an annuity
16contract that has matured or terminated, shall instead be
17presumed abandoned 2 years from the date of the owner's last
18indication of interest in the property.
19(Source: P.A. 100-22, eff. 1-1-18; 100-566, eff. 1-1-18;
20101-552, eff. 1-1-20.)
 
21    (765 ILCS 1026/15-202)
22    Sec. 15-202. When tax-deferred and tax-exempt retirement
23accounts account presumed abandoned.
24    (a) Subject to Section 15-210, property held in a pension
25account or retirement account that qualifies for tax deferral

 

 

SB0338- 20 -LRB102 10796 LNS 16126 b

1or tax exemption under the income-tax laws of the United
2States is presumed abandoned if it is unclaimed by the
3apparent owner after the later of:
4        (1) 3 years after the following dates:
5            (A) except as in subparagraph (B), the date a
6        communication sent by the holder by first-class United
7        States mail to the apparent owner is returned to the
8        holder undelivered by the United States Postal
9        Service; or
10            (B) if such communication is re-sent within 30
11        days after the date the first communication is
12        returned undelivered, the date the second
13        communication was returned undelivered by the United
14        States Postal Service; or
15        (2) the earlier of the following dates:
16            (A) 3 years after the date the apparent owner
17        becomes 72 70.5 years of age, if determinable by the
18        holder; or
19            (B) one year after the date of mandatory
20        distribution following death if the Internal Revenue
21        Code requires distribution to avoid a tax penalty and
22        the holder:
23                (i) receives confirmation of the death of the
24            apparent owner in the ordinary course of its
25            business; or
26                (ii) confirms the death of the apparent owner

 

 

SB0338- 21 -LRB102 10796 LNS 16126 b

1            under subsection (b).
2    (b) If a holder in the ordinary course of its business
3receives notice or an indication of the death of an apparent
4owner and subsection (a)(2) applies, the holder shall attempt
5not later than 90 days after receipt of the notice or
6indication to confirm whether the apparent owner is deceased.
7    (c) If the holder does not send communications to the
8apparent owner of an account described in subsection (a) by
9first-class United States mail on at least an annual basis,
10the holder shall attempt to confirm the apparent owner's
11interest in the property by sending the apparent owner an
12electronic-mail communication not later than 2 years after the
13apparent owner's last indication of interest in the property.
14However, the holder promptly shall attempt to contact the
15apparent owner by first-class United States mail if:
16        (1) the holder does not have information needed to
17    send the apparent owner an electronic mail communication
18    or the holder believes that the apparent owner's
19    electronic mail address in the holder's records is not
20    valid;
21        (2) the holder receives notification that the
22    electronic-mail communication was not received; or
23        (3) the apparent owner does not respond to the
24    electronic-mail communication within 30 days after the
25    communication was sent.
26    (d) If first-class United States mail sent under

 

 

SB0338- 22 -LRB102 10796 LNS 16126 b

1subsection (c) is returned to the holder undelivered by the
2United States Postal Service, the property is presumed
3abandoned 3 years after the later of:
4        (1) except as in paragraph (2), the date a
5    communication to contact the apparent owner sent by
6    first-class United States mail is returned to the holder
7    undelivered;
8        (2) if such communication is re-sent within 30 days
9    after the date the first communication is returned
10    undelivered, the date the second communication was
11    returned undelivered; or
12        (3) the date established by subsection (a)(2).
13(Source: P.A. 100-22, eff. 1-1-18.)
 
14    (765 ILCS 1026/15-213)
15    Sec. 15-213. United States savings bonds.
16    (a) As used in this Section, "United States savings bond"
17means property, tangible or intangible, in the form of a
18savings bond issued by the United States Treasury, whether in
19paper, electronic, or paperless form, along with all proceeds
20thereof in the possession of the administrator.
21    (b) Notwithstanding any provision of this Act to the
22contrary, a United States savings bond subject to this Section
23or held or owing in this State by any person is presumed
24abandoned when such bond has remained unclaimed and unredeemed
25for 5 years after its date of final extended maturity.

 

 

SB0338- 23 -LRB102 10796 LNS 16126 b

1    (c) United States savings bonds that are presumed
2abandoned and unclaimed under subsection (b) shall escheat to
3the State of Illinois and all property rights and legal title
4to and ownership of the United States savings bonds, or
5proceeds from the bonds, including all rights, powers, and
6privileges of survivorship of any owner, co-owner, or
7beneficiary, shall vest solely in the State according to the
8procedure set forth in subsections (d) through (f).
9    (d) Within 180 days after a United States savings bond has
10been presumed abandoned, in the absence of a claim having been
11filed with the administrator for the savings bond, the
12administrator shall commence a civil action in the Circuit
13Court of Sangamon County for a determination that the United
14States savings bonds has escheated to the State. The
15administrator may postpone the bringing of the action until
16sufficient United States savings bonds have accumulated in the
17administrator's custody to justify the expense of the
18proceedings.
19    (e) The administrator shall make service by publication in
20the civil action in accordance with Sections 2-206 and 2-207
21of the Code of Civil Procedure, which shall include the filing
22with the Circuit Court of Sangamon County of the affidavit
23required in Section 2-206 of that Code by an employee of the
24administrator with personal knowledge of the efforts made to
25contact the owners of United States savings bonds presumed
26abandoned under this Section. In addition to the diligent

 

 

SB0338- 24 -LRB102 10796 LNS 16126 b

1inquiries made pursuant to Section 2-206 of the Code of Civil
2Procedure, the administrator may also utilize additional
3discretionary means to attempt to provide notice to persons
4who may own a United States savings bond registered to a person
5with a last known address in the State of Illinois subject to a
6civil action pursuant to subsection (d).
7    (f) The owner of a United States savings bond registered
8to a person with a last known address in the State of Illinois
9subject to a civil action pursuant to subsection (d) may file a
10claim for such United States savings bond with either the
11administrator or by filing a claim in the civil action in the
12Circuit Court of Sangamon County in which the savings bond
13registered to that person is at issue prior to the entry of a
14final judgment by the Circuit Court pursuant to this
15subsection, and unless the Circuit Court determines that such
16United States savings bond is not owned by the claimant, then
17such United States savings bond shall no longer be presumed
18abandoned. If no person files a claim or appears at the hearing
19to substantiate a disputed claim or if the court determines
20that a claimant is not entitled to the property claimed by the
21claimant, then the court, if satisfied by evidence that the
22administrator has substantially complied with the laws of this
23State, shall enter a judgment that the United States savings
24bonds have escheated to this State, and all property rights
25and legal title to and ownership of such United States savings
26bonds or proceeds from such bonds, including all rights,

 

 

SB0338- 25 -LRB102 10796 LNS 16126 b

1powers, and privileges of survivorship of any owner, co-owner,
2or beneficiary, shall vest in this State.
3    (g) The administrator shall redeem from the Bureau of the
4Fiscal Service of the United States Treasury the United States
5savings bonds escheated to the State and deposit the proceeds
6from the redemption of United States savings bonds into the
7Unclaimed Property Trust Fund.
8    (h) Any person making a claim for the United States
9savings bonds escheated to the State under this subsection, or
10for the proceeds from such bonds, may file a claim with the
11administrator. Upon providing sufficient proof of the validity
12of such person's claim, the administrator may, in his or her
13sole discretion, pay such claim. If payment has been made to
14any claimant, no action thereafter may be maintained by any
15other claimant against the State or any officer thereof for or
16on account of such funds.
17(Source: P.A. 100-22, eff. 1-1-18.)
 
18    (765 ILCS 1026/15-401)
19    Sec. 15-401. Report required by holder.
20    (a) A holder of property presumed abandoned and subject to
21the custody of the administrator shall report in a record to
22the administrator concerning the property. A holder shall
23report via the internet in a format approved by the
24administrator, unless the administrator gives a holder
25specific permission to file a paper report.

 

 

SB0338- 26 -LRB102 10796 LNS 16126 b

1    (b) A holder may contract with a third party to make the
2report required under subsection (a).
3    (c) Whether or not a holder contracts with a third party
4under subsection (b), the holder is responsible:
5        (1) to the administrator for the complete, accurate,
6    and timely reporting of property presumed abandoned; and
7        (2) for paying or delivering to the administrator
8    property described in the report.
9    (d) A business association who has no reportable property
10shall so report to the administrator on forms via the Internet
11in a format approved by the administrator if the business
12association has:
13        (1) annual sales of more than $1,000,000;
14        (2) securities that are publicly traded;
15        (3) a net worth of more than $10,000,000; or
16        (4) more than 100 employees.
17    The administrator may increase one or more of the
18thresholds for filing a negative report by administrative
19rule.
20(Source: P.A. 100-22, eff. 1-1-18.)
 
21    (765 ILCS 1026/15-503)
22    Sec. 15-503. Notice by administrator.
23    (a) The administrator shall give notice to an apparent
24owner that property presumed abandoned and appears to be owned
25by the apparent owner is held by the administrator under this

 

 

SB0338- 27 -LRB102 10796 LNS 16126 b

1Act.
2    (b) In providing notice under subsection (a), the
3administrator shall:
4        (1) except as otherwise provided in paragraph (2),
5    send written notice by first-class United States mail to
6    each apparent owner of property valued at $100 or more
7    held by the administrator, unless the administrator
8    determines that a mailing by first-class United States
9    mail would not be received by the apparent owner, and, in
10    the case of a security held in an account for which the
11    apparent owner had consented to receiving electronic mail
12    from the holder, send notice by electronic mail if the
13    electronic-mail address of the apparent owner is known to
14    the administrator instead of by first-class United States
15    mail; or
16        (2) send the notice to the apparent owner's
17    electronic-mail address if the administrator does not have
18    a valid United States mail address for an apparent owner,
19    but has an electronic-mail address that the administrator
20    does not know to be invalid.
21    (c) In addition to the notice under subsection (b), the
22administrator shall:
23        (1) publish every 6 months in at least one English
24    language newspaper of general circulation in each county
25    in this State notice of property held by the administrator
26    which must include:

 

 

SB0338- 28 -LRB102 10796 LNS 16126 b

1            (A) the total value of property received by the
2        administrator during the preceding 6-month period,
3        taken from the reports under Section 15-401;
4            (B) the total value of claims paid by the
5        administrator during the preceding 6-month period;
6            (C) the Internet web address of the unclaimed
7        property website maintained by the administrator;
8            (D) a telephone number and electronic-mail address
9        to contact the administrator to inquire about or claim
10        property; and
11            (E) a statement that a person may access the
12        Internet by a computer to search for unclaimed
13        property and a computer may be available as a service
14        to the public at a local public library.
15        (2) The administrator shall maintain a website
16    accessible by the public and electronically searchable
17    which contains the names reported to the administrator of
18    apparent owners for whom property is being held by the
19    administrator. The administrator need not list property on
20    such website when: no owner name was reported, a claim has
21    been initiated or is pending for the property, the
22    administrator has made direct contact with the apparent
23    owner of the property, and in other instances where the
24    administrator reasonably believes exclusion of the
25    property is in the best interests of both the State and the
26    owner of the property.

 

 

SB0338- 29 -LRB102 10796 LNS 16126 b

1    (d) The website or database maintained under subsection
2(c)(2) must include instructions for filing with the
3administrator a claim to property and an online claim form
4with instructions. The website may also provide a printable
5claim form with instructions for its use.
6    (e) Tax return identification of apparent owners of
7abandoned property.
8        (1) At least annually the administrator shall notify
9    the Department of Revenue of the names of persons
10    appearing to be owners of abandoned property under this
11    Section. The administrator shall also provide to the
12    Department of Revenue the social security numbers of the
13    persons, if available.
14        (2) The Department of Revenue shall notify the
15    administrator if any person under subsection (e)(1) has
16    filed an Illinois income tax return and shall provide the
17    administrator with the last known address of the person as
18    it appears in Department of Revenue records, except as
19    prohibited by federal law. The Department of Revenue may
20    also provide additional addresses for the same taxpayer
21    from the records of the Department, except as prohibited
22    by federal law.
23        (3) In order to facilitate the return of property
24    under this subsection, the administrator and the
25    Department of Revenue may enter into an interagency
26    agreement concerning protection of confidential

 

 

SB0338- 30 -LRB102 10796 LNS 16126 b

1    information, data match rules, and other issues.
2        (4) The administrator may deliver, as provided under
3    Section 15-904 of this Act, property or pay the amount
4    owing to a person matched under this Section without the
5    person filing a claim under Section 15-903 of this Act if
6    the following conditions are met:
7            (A) the value of the property that is owed the
8        person is $2,000 or less;
9            (B) the property is not either tangible property
10        or securities;
11            (C) the last known address for the person
12        according to the Department of Revenue records is less
13        than 12 months old; and
14            (D) the administrator has evidence sufficient to
15        establish that the person who appears in Department of
16        Revenue records is the owner of the property and the
17        owner currently resides at the last known address from
18        the Department of Revenue.
19        (5) If the value of the property that is owed the
20    person is greater than $2,000, or is tangible property or
21    securities the administrator shall provide notice to the
22    person, informing the person that he or she is the owner of
23    abandoned property held by the State and may file a claim
24    with the administrator for return of the property.
25        (6) The administrator does not need to notify the
26    Department of Revenue of the names or social security

 

 

SB0338- 31 -LRB102 10796 LNS 16126 b

1    numbers of apparent owners of abandoned property if the
2    administrator reasonably believes that the Department of
3    Revenue will be unable to provide information that would
4    provide sufficient evidence to establish that the person
5    in the Department of Revenue's records is the apparent
6    owner of unclaimed property in the custody of the
7    administrator.
8    (f) The administrator may use additional databases to
9verify the identity of the person and that the person
10currently resides at the last known address. The administrator
11may utilize publicly and commercially available databases to
12find and update or add information for apparent owners of
13property held by the administrator.
14    (g) In addition to giving notice under subsection (b),
15publishing the information under subsection (c)(1) and
16maintaining the website or database under subsection (c)(2),
17the administrator may use other printed publication,
18telecommunication, the Internet, or other media to inform the
19public of the existence of unclaimed property held by the
20administrator.
21    (h) Identification of apparent owners of abandoned
22property using other State databases.
23     (1) The administrator may enter into interagency
24agreements with the Secretary of State and the Illinois State
25Board of Elections to identify persons appearing to be owners
26of abandoned property with databases under the control of the

 

 

SB0338- 32 -LRB102 10796 LNS 16126 b

1Secretary of State and the Illinois State Board of Elections.
2Such interagency agreements shall include protection of
3confidential information, data match rules, and other
4necessary and proper issues.
5    (2) Except as prohibited by federal law, after January 1,
62022 the administrator may provide the Secretary of State with
7names and other identifying information of persons appearing
8to be owners of abandoned property. The Secretary of State
9shall provide the administrator with the last known address as
10it appears in its respective records of any person reasonably
11believed to be the apparent owner of abandoned property.
12    (3) The Illinois State Board of Elections shall, upon
13request, annually provide the administrator with electronic
14data or compilations of voter registration information. The
15administrator may use such electronic data or compilations of
16voter registration information to identify persons appearing
17to be owners of abandoned property.
18    (4) The administrator may deliver, as provided under
19Section 15-904, property or pay the amount owing to a person
20matched under this Section without the person filing a claim
21under Section 15-903 if:
22        (i) the value of the property that is owed the person
23    is $2,000 or less;
24        (ii) the property is not either tangible property or
25    securities;
26        (iii) the last known address for the person according

 

 

SB0338- 33 -LRB102 10796 LNS 16126 b

1    to the records of the Secretary of State or Illinois State
2    Board of Elections is less than 12 months old; and
3        (iv) the administrator has evidence sufficient to
4    establish that the person who appears in the records of
5    the Secretary of State or Illinois State Board of
6    Elections is the owner of the property and the owner
7    currently resides at the last known address from the
8    Secretary of State or the Illinois State Board of
9    Elections.
10(Source: P.A. 100-22, eff. 1-1-18; 100-566, eff. 1-1-18.)
 
11    (765 ILCS 1026/15-603)
12    Sec. 15-603. Payment or delivery of property to
13administrator.
14    (a) Except as otherwise provided in this Section, on
15filing a report under Section 15-401, the holder shall pay or
16deliver to the administrator the property described in the
17report.
18    (b) If property in a report under Section 15-401 is an
19automatically renewable deposit and a penalty or forfeiture in
20the payment of interest would result from paying the deposit
21to the administrator at the time of the report, the date for
22payment of the property to the administrator is extended until
23a penalty or forfeiture no longer would result from payment,
24if the holder informs the administrator of the extended date.
25    (c) Tangible property in a safe-deposit box may not be

 

 

SB0338- 34 -LRB102 10796 LNS 16126 b

1delivered to the administrator until a mutually agreed upon
2date that is no sooner than 60 days after filing the report
3under Section 15-401.
4    (d) If property reported to the administrator under
5Section 15-401 is a security, the administrator may:
6        (1) make an endorsement, instruction, or entitlement
7    order on behalf of the apparent owner to invoke the duty of
8    the issuer, its transfer agent, or the securities
9    intermediary to transfer the security; or
10        (2) dispose of the security under Section 15-702.
11    (e) If the holder of property reported to the
12administrator under Section 15-401 is the issuer of a
13certificated security, the administrator may obtain a
14replacement certificate in physical or book-entry form under
15Section 8-405 of the Uniform Commercial Code. An indemnity
16bond is not required.
17    (f) The administrator shall establish procedures for the
18registration, issuance, method of delivery, transfer, and
19maintenance of securities delivered to the administrator by a
20holder.
21    (g) An issuer, holder, and transfer agent or other person
22acting in good faith under this Section under instructions of
23and on behalf of the issuer or holder is not liable to the
24apparent owner for a claim arising with respect to property
25after the property has been delivered to the administrator.
26    (h) A holder is not required to deliver to the

 

 

SB0338- 35 -LRB102 10796 LNS 16126 b

1administrator a security identified by the holder as a
2non-freely transferable security in a report filed under
3Section 15-401. If the administrator or holder determines that
4a security is no longer a non-freely transferable security,
5the holder shall report and deliver the security on the next
6regular date prescribed for delivery of securities under this
7Act. The holder shall make a determination annually whether a
8security identified in a report filed under Section 15-401 as
9a non-freely transferable security is no longer a non-freely
10transferable security.
11    (i) If property reported to the administrator is virtual
12currency, the holder shall liquidate the virtual currency and
13remit the proceeds to the administrator. The liquidation shall
14occur anytime within 30 days prior to the filing of the report
15under Section 15-401. The owner shall not have recourse
16against the holder or the administrator to recover any gain in
17value that occurs after the liquidation of the virtual
18currency under this subsection.
19(Source: P.A. 100-22, eff. 1-1-18.)
 
20    (765 ILCS 1026/15-607)
21    Sec. 15-607. Crediting income or gain to owner's account.
22    (a) If property other than money is delivered to the
23administrator, the owner is entitled to receive from the
24administrator income or gain realized or accrued on the
25property before the property is sold.

 

 

SB0338- 36 -LRB102 10796 LNS 16126 b

1    (b) Before August 22, 2017 Except as provided in
2subsection (c), interest on money is not payable to an owner
3for periods where the property is in the possession of the
4administrator.
5    (c) Beginning on August 22, 2017, If an interest-bearing
6demand, savings, or time deposit is paid or delivered to the
7administrator on or after July 1, 2018, then the administrator
8shall pay interest to the owner of property in the form of
9money at the greater lesser of: (i) the percentage increase,
10if any, in the Consumer Price Index for All Urban Consumers for
11all items published by the United States Department of Labor
12(CPI-U); or (ii) the actual rate of return the State Treasurer
13earned on the Unclaimed Property Trust Fund property earned
14while in the possession of the holder and reported to the
15administrator. Interest begins to accrue when the property in
16the form of money is delivered to the administrator or when the
17administrator converts property to money pursuant to Article 7
18and ends on the earlier of the expiration of 10 years after the
19property begins to accrue interest its delivery or the date on
20which payment is made to the owner. The administrator may
21establish by administrative rule more detailed methodologies
22for calculating the amount of interest to be paid to an owner
23under this Section using CPI-U or the rate the property earned
24while in the possession of the holder.
25     (d) When paying interest to an owner pursuant to
26subsection (c), the administrator shall charge a one-time

 

 

SB0338- 37 -LRB102 10796 LNS 16126 b

1administrative fee of $5, deductible only from interest.
2(Source: P.A. 100-22, eff. 1-1-18; 100-566, eff. 1-1-18.)
 
3    (765 ILCS 1026/15-906)
4    Sec. 15-906. Action by person whose claim is denied. Not
5later than one year after filing a claim under subsection (a)
6of Section 15-903, the claimant may commence a contested case
7pursuant to the Illinois Administrative Procedure Act to
8establish a claim by the preponderance of the evidence after
9either receiving notice under subsection (b) of Section 15-904
1015-903 or the claim is deemed denied under subsection (b) (d)
11of Section 15-904 15-903.
12(Source: P.A. 100-22, eff. 1-1-18.)
 
13    (15 ILCS 505/0.04 rep.)
14    (15 ILCS 505/0.05 rep.)
15    Section 15. The State Treasurer Act is amended by
16repealing Sections 0.04 and 0.05.

 

 

SB0338- 38 -LRB102 10796 LNS 16126 b

1 INDEX
2 Statutes amended in order of appearance
3    15 ILCS 505/0.02
4    15 ILCS 505/0.03
5    765 ILCS 1026/15-102
6    765 ILCS 1026/15-201
7    765 ILCS 1026/15-202
8    765 ILCS 1026/15-213
9    765 ILCS 1026/15-401
10    765 ILCS 1026/15-503
11    765 ILCS 1026/15-603
12    765 ILCS 1026/15-607
13    765 ILCS 1026/15-906
14    15 ILCS 505/0.04 rep.
15    15 ILCS 505/0.05 rep.