Bill Text: IL SB1313 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Revised Uniform Unclaimed Property Act. Makes changes concerning the time and circumstances under which financial organization deposits are presumed abandoned. Provides that compensation held on a payroll card is reportable one year after the date of the last indication of interest in the property by the apparent owner, except if the payroll card becomes a demand deposit, then 3 years after the date of the last indication of interest in the property by the apparent owner. 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 he or she 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. Provides that the State Treasurer shall examine a financial organization in compliance with the visitation standards established in the National Bank Act or the Federal Credit Union Act, if applicable. Provides that records obtained in examinations of State-regulated financial organizations are subject to the same provisions concerning use and confidentiality as records obtained in examinations of other persons. Makes other changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB1313 Detail]

Download: Illinois-2019-SB1313-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB1313 Introduced 2/7/2019, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED:
765 ILCS 1026/15-201
765 ILCS 1026/15-210
765 ILCS 1026/15-503
765 ILCS 1026/15-603
765 ILCS 1026/15-1002
765 ILCS 1026/15-1002.1
765 ILCS 1026/15-1004
765 ILCS 1026/15-1401
765 ILCS 1026/15-1402
Amends the Revised Uniform Unclaimed Property Act. Makes changes concerning the time and circumstances under which financial organization deposits are presumed abandoned. Provides that compensation held on a payroll card is reportable one year after the date of the last indication of interest in the property by the apparent owner, except if the payroll card becomes a demand deposit, then 3 years after the date of the last indication of interest in the property by the apparent owner. 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 he or she 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. Provides that the State Treasurer shall examine a financial organization in compliance with the visitation standards established in the National Bank Act or the Federal Credit Union Act, if applicable. Provides that records obtained in examinations of State-regulated financial organizations are subject to the same provisions concerning use and confidentiality as records obtained in examinations of other persons. Makes other changes. Effective immediately.
LRB101 08233 LNS 53299 b
A BILL FOR
SB1313 LRB101 08233 LNS 53299 b
AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Revised Uniform Unclaimed Property Act is
amended by changing Sections 15-201, 15-210, 15-503, 15-603,
15-1002, 15-1002.1, 15-1004, 15-1401, and 15-1402 as follows:
(765 ILCS 1026/15-201)
Sec. 15-201. When property presumed abandoned. Subject to
Section 15-210, the following property is presumed abandoned if
it is unclaimed by the apparent owner during the period
specified below:
(1) a traveler's check, 15 years after issuance;
(2) a money order, 3 7 years after issuance;
(3) any instrument on which a financial organization or
business association is directly liable, 3 years after
issuance;
(4) a state or municipal bond, bearer bond, or
original-issue-discount bond, 3 years after the earliest
of the date the bond matures or is called or the obligation
to pay the principal of the bond arises;
(5) a debt of a business association, 3 years after the
obligation to pay arises;
(6) financial organization deposits as follows:

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(i) a demand deposit, 3 years after the date of the
last indication of interest in the property by the
apparent owner;
(ii) a savings deposit, 3 years after the date of
the last indication of interest in the property by the
apparent owner;
(iii) a time deposit for which the owner has not
consented to automatic renewal of the time deposit, 3
years after the date of the last indication of interest
in the property by the apparent owner;
(iv) an automatically renewable time deposit for
which the owner consented to the automatic renewal in a
record on file with the holder, 3 years after the date
of the last indication of interest in the property by
the apparent owner following the completion of the
initial term of the time deposit and one automatic
renewal term of the time deposit a demand, savings, or
time deposit, 3 years after the later of maturity or
the date of the last indication of interest in the
property by the apparent owner, except for a deposit
that is automatically renewable, 3 years after its
initial date of maturity unless the apparent owner
consented in a record on file with the holder to
renewal at or about the time of the renewal;
(7) money or a credit owed to a customer as a result of
a retail business transaction, other than in-store credit

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for returned merchandise, 3 years after the obligation
arose;
(8) an amount owed by an insurance company on a life or
endowment insurance policy or an annuity contract that has
matured or terminated, 3 years after the obligation to pay
arose under the terms of the policy or contract or, if a
policy or contract for which an amount is owed on proof of
death has not matured by proof of the death of the insured
or annuitant, as follows:
(A) with respect to an amount owed on a life or
endowment insurance policy, the earlier of:
(i) 3 years after the death of the insured; or
(ii) 2 years after the insured has attained, or
would have attained if living, the limiting age
under the mortality table on which the reserve for
the policy is based; and
(B) with respect to an amount owed on an annuity
contract, 3 years after the death of the annuitant.
(9) funds on deposit or held in trust pursuant to the
Illinois Funeral or Burial Funds Act, the earliest of:
(A) 2 years after the date of death of the
beneficiary;
(B) one year after the date the beneficiary has
attained, or would have attained if living, the age of
105 where the holder does not know whether the
beneficiary is deceased;

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(C) 40 years after the contract for prepayment was
executed;
(10) property distributable by a business association
in the course of dissolution or distributions from the
termination of a retirement plan, one year after the
property becomes distributable;
(11) property held by a court, including property
received as proceeds of a class action, 3 years after the
property becomes distributable;
(12) property held by a government or governmental
subdivision, agency, or instrumentality, including
municipal bond interest and unredeemed principal under the
administration of a paying agent or indenture trustee, 3
years after the property becomes distributable;
(13) wages, commissions, bonuses, or reimbursements to
which an employee is entitled, or other compensation for
personal services: , including amounts held on a payroll
card, one year after the amount becomes payable;
(A) not held on a payroll card, one year after the
amount becomes payable; or
(B) held on a payroll card, one year after the date
of the last indication of interest in the property by
the apparent owner, unless the payroll card becomes a
demand deposit and is no longer a payroll card account
as defined in Regulation E, 12 CFR Part 1005, as
amended, then 3 years after the date of the last

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indication of interest in the property by the apparent
owner;
(14) a deposit or refund owed to a subscriber by a
utility, one year after the deposit or refund becomes
payable, except that any capital credits or patronage
capital retired, returned, refunded or tendered to a member
of an electric cooperative, as defined in Section 3.4 of
the Electric Supplier Act, or a telephone or
telecommunications cooperative, as defined in Section
13-212 of the Public Utilities Act, that has remained
unclaimed by the person appearing on the records of the
entitled cooperative for more than 2 years, shall not be
subject to, or governed by, any other provisions of this
Act, but rather shall be used by the cooperative for the
benefit of the general membership of the cooperative; and
(15) property not specified in this Section or Sections
15-202 through 15-208, the earlier of 3 years after the
owner first has a right to demand the property or the
obligation to pay or distribute the property arises.
Notwithstanding anything to the contrary in this Section
15-201, and subject to Section 15-210, a deceased owner cannot
indicate interest in his or her property. If the owner is
deceased and the abandonment period for the owner's property
specified in this Section 15-201 is greater than 2 years, then
the property, other than an amount owed by an insurance company
on a life or endowment insurance policy or an annuity contract

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that has matured or terminated, shall instead be presumed
abandoned 2 years from the date of the owner's last indication
of interest in the property.
(Source: P.A. 100-22, eff. 1-1-18; 100-566, eff. 1-1-18.)
(765 ILCS 1026/15-210)
Sec. 15-210. Indication of apparent owner interest in
property.
(a) The period after which property is presumed abandoned
is measured from the later of:
(1) the date the property is presumed abandoned under
this Article; or
(2) the latest indication of interest by the apparent
owner in the property.
(b) Under this Act, an indication of an apparent owner's
interest in property includes:
(1) a record communicated by the apparent owner to the
holder or agent of the holder concerning the property or
the account in which the property is held;
(2) an oral communication by the apparent owner to the
holder or agent of the holder concerning the property or
the account in which the property is held, if the holder or
its agent contemporaneously makes and preserves a record of
the fact of the apparent owner's communication;
(3) presentment of a check or other instrument of
payment of a dividend, interest payment, or other

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distribution, or evidence of receipt of a distribution made
by electronic or similar means, with respect to an account,
underlying security, or interest in a business
association;
(4) activity directed by an apparent owner in the
account in which the property is held, including accessing
the account or information concerning the account, or a
direction by the apparent owner to increase, decrease, or
otherwise change the amount or type of property held in the
account;
(5) a deposit into or withdrawal from an account at a
financial organization, except for a recurring Automated
Clearing House (ACH) debit or credit previously authorized
by the apparent owner or an automatic reinvestment of
dividends or interest; and
(6) subject to subsection (e), payment of a premium on
an insurance policy.
(c) An action by an agent or other representative of an
apparent owner, other than the holder acting as the apparent
owner's agent, is presumed to be an action on behalf of the
apparent owner.
(d) A communication with an apparent owner by a person
other than the holder or the holder's representative is not an
indication of interest in the property by the apparent owner
unless a record of the communication evidences the apparent
owner's knowledge of a right to the property.

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(e) If the insured dies or the insured or beneficiary of an
insurance policy otherwise becomes entitled to the proceeds
before depletion of the cash surrender value of the policy by
operation of an automatic-premium-loan provision or other
nonforfeiture provision contained in the policy, the operation
does not prevent the policy from maturing or terminating.
(f) If the apparent owner has another property with the
holder to which Section 201(6) applies, then activity directed
by an apparent owner in any other accounts, including loan
accounts, at a financial organization holding an inactive
account of the apparent owner shall be an indication of
interest in all such accounts if:
(A) the apparent owner engages in one or more of
the following activities:
(i) the apparent owner undertakes one or more
of the actions described in subsection (b) of this
Section regarding any of the other accounts the
apparent owner has with the financial organization
account that appears on a consolidated statement
with the inactive account;
(ii) the apparent owner increases or decreases
the amount of funds in any other account the
apparent owner has with the financial
organization; or
(iii) the apparent owner engages in any other
relationship with the financial organization,

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including payment of any amounts due on a loan; and
(B) the foregoing apply so long as the mailing
address for the apparent owner in the financial
organization's books and records is the same for both
the inactive account and the active account.
(Source: P.A. 100-22, eff. 1-1-18.)
(765 ILCS 1026/15-503)
Sec. 15-503. Notice by administrator.
(a) The administrator shall give notice to an apparent
owner that property presumed abandoned and appears to be owned
by the apparent owner is held by the administrator under this
Act.
(b) In providing notice under subsection (a), the
administrator shall:
(1) except as otherwise provided in paragraph (2), send
written notice by first-class United States mail to each
apparent owner of property valued at $100 or more held by
the administrator, unless the administrator determines
that a mailing by first-class United States mail would not
be received by the apparent owner, and, in the case of a
security held in an account for which the apparent owner
had consented to receiving electronic mail from the holder,
send notice by electronic mail if the electronic-mail
address of the apparent owner is known to the administrator
instead of by first-class United States mail; or

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(2) send the notice to the apparent owner's
electronic-mail address if the administrator does not have
a valid United States mail address for an apparent owner,
but has an electronic-mail address that the administrator
does not know to be invalid.
(c) In addition to the notice under subsection (b), the
administrator shall:
(1) publish every 6 months in at least one English
language newspaper of general circulation in each county in
this State notice of property held by the administrator
which must include:
(A) the total value of property received by the
administrator during the preceding 6-month period,
taken from the reports under Section 15-401;
(B) the total value of claims paid by the
administrator during the preceding 6-month period;
(C) the Internet web address of the unclaimed
property website maintained by the administrator;
(D) an a telephone number and electronic-mail
address to contact the administrator to inquire about
or claim property; and
(E) a statement that a person may access the
Internet by a computer to search for unclaimed property
and a computer may be available as a service to the
public at a local public library.
(2) The administrator shall maintain a website

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accessible by the public and electronically searchable
which contains the names reported to the administrator of
apparent owners for whom property is being held by the
administrator. The administrator need not list property on
such website when: no owner name was reported, a claim has
been initiated or is pending for the property, the
administrator has made direct contact with the apparent
owner of the property, and in other instances where the
administrator reasonably believes exclusion of the
property is in the best interests of both the State and the
owner of the property.
(d) The website or database maintained under subsection
(c)(2) must include instructions for filing with the
administrator a claim to property and an online claim form with
instructions. The website may also provide a printable claim
form with instructions for its use.
(e) Tax return identification of apparent owners of
abandoned property.
(1) At least annually the administrator shall notify
the Department of Revenue of the names of persons appearing
to be owners of abandoned property under this Section. The
administrator shall also provide to the Department of
Revenue the social security numbers of the persons, if
available. 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 he or

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she 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.
(2) The Department of Revenue shall notify the
administrator if any person under subsection (e)(1) has
filed an Illinois income tax return and shall provide the
administrator with the last known address of the person as
it appears in Department of Revenue records, except as
prohibited by federal law. The Department of Revenue may
also provide additional addresses for the same taxpayer
from the records of the Department, except as prohibited by
federal law.
(3) In order to facilitate the return of property under
this subsection, the administrator and the Department of
Revenue may enter into an interagency agreement concerning
protection of confidential information, data match rules,
and other issues.
(4) The administrator may deliver, as provided under
Section 15-904 of this Act, property or pay the amount
owing to a person matched under this Section without the
person filing a claim under Section 15-903 of this Act if
the following conditions are met:
(A) the value of the property that is owed the
person is $2,000 or less;

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(B) the property is not either tangible property or
securities;
(C) the last known address for the person according
to the Department of Revenue records is less than 12
months old; and
(D) the administrator has evidence sufficient to
establish that the person who appears in Department of
Revenue records is the owner of the property and the
owner currently resides at the last known address from
the Department of Revenue.
(5) If the value of the property that is owed the
person is greater than $2,000, or is tangible property or
securities the administrator shall provide notice to the
person, informing the person that he or she is the owner of
abandoned property held by the State and may file a claim
with the administrator for return of the property.
(f) The administrator may use additional databases to
verify the identity of the person and that the person currently
resides at the last known address. The administrator may
utilize publicly and commercially available databases to find
and update or add information for apparent owners of property
held by the administrator.
(g) In addition to giving notice under subsection (b),
publishing the information under subsection (c)(1) and
maintaining the website or database under subsection (c)(2),
the administrator may use other printed publication,

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telecommunication, the Internet, or other media to inform the
public of the existence of unclaimed property held by the
administrator.
(Source: P.A. 100-22, eff. 1-1-18; 100-566, eff. 1-1-18.)
(765 ILCS 1026/15-603)
Sec. 15-603. Payment or delivery of property to
administrator.
(a) Except as otherwise provided in this Section, on filing
a report under Section 15-401, the holder shall pay or deliver
to the administrator the property described in the report.
(b) If property in a report under Section 15-401 is an
automatically renewable time deposit and a penalty or
forfeiture in the payment of interest would result from paying
the deposit to the administrator at the time of the report, the
date for reporting and delivering payment of the property to
the administrator is extended until a penalty or forfeiture no
longer would result from payment, if the holder informs the
administrator of the extended date. The holder shall report and
deliver the property no later than the next regular date
prescribed for reporting under this Act for the holder.
(c) Tangible property in a safe-deposit box may not be
delivered to the administrator until a mutually agreed upon
date that is no sooner than 60 days after filing the report
under Section 15-401.
(d) If property reported to the administrator under Section

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

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regular date prescribed for delivery of securities under this
Act for the holder. The holder shall make a determination
annually whether a security identified in a report filed under
Section 15-401 as a non-freely transferable security is no
longer a non-freely transferable security.
(Source: P.A. 100-22, eff. 1-1-18.)
(765 ILCS 1026/15-1002)
Sec. 15-1002. Examination of records to determine
compliance.
(a) The administrator, at reasonable times and on
reasonable notice, may:
(1) examine the records of any person to determine
whether the person has complied with this Act even if the
person believes it is not in possession of any property
that must be reported, paid, or delivered under this Act;
(2) issue an administrative subpoena requiring the
person or agent of the person to make records available for
examination; and
(3) bring an action seeking judicial enforcement of the
subpoena.
(b) Notwithstanding subsection (a) of this Section, if the
provisions of subsection (b) of Section 484 of the National
Bank Act (12 U.S.C. 484(b)) or Section 106 of the Federal
Credit Union Act (12 U.S.C. 1756) apply to a financial
organization, then the administrator may only initiate an

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examination of the financial organization pursuant to the
visitation standard of the applicable federal law.
(Source: P.A. 100-22, eff. 1-1-18.)
(765 ILCS 1026/15-1002.1)
Sec. 15-1002.1. Examination of State-regulated financial
organizations.
(a) Notwithstanding Section 15-1002 of this Act, for any
financial organization for which the Department of Financial
and Professional Regulation is the primary prudential
regulator, the administrator shall not examine such financial
institution unless the administrator has consulted with the
Secretary of Financial and Professional Regulation and the
Department of Financial and Professional Regulation has not
examined such financial organization for compliance with this
Act within the past 5 years. The Secretary of Financial and
Professional Regulation may waive in writing the provisions of
this subsection (a) in order to permit the administrator to
examine a financial organization or group of financial
organizations for compliance with this Act.
(b) Nothing in this Section shall be construed to prohibit
the administrator from examining a financial organization for
which the Department of Financial and Professional Regulation
is not the primary prudential regulator. Further, nothing in is
this Act shall be construed to limit the authority of the
Department of Financial and Professional Regulation to examine

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financial organizations.
(Source: P.A. 100-22, eff. 1-1-18; 100-566, eff. 1-1-18;
revised 10-4-18.)
(765 ILCS 1026/15-1004)
Sec. 15-1004. Records obtained in examination. Records
obtained and records, including work papers, compiled by the
administrator or administrator's agent in the course of
conducting an examination under Section 15-1002 or Section
15-1002.1:
(1) are subject to the confidentiality and security
provisions of Article 14 and are exempt from disclosure
under the Freedom of Information Act;
(2) may be used by the administrator in an action to
collect property or otherwise enforce this Act;
(3) may be used in a joint examination conducted with
another state, the United States, a foreign country or
subordinate unit of a foreign country, or any other
governmental entity if the governmental entity conducting
the examination is legally bound to maintain the
confidentiality and security of information obtained from
a person subject to examination in a manner substantially
equivalent to Article 14;
(4) may be disclosed, on request, to the person that
administers the unclaimed property law of another state for
that state's use in circumstances equivalent to

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circumstances described in this Article, if the other state
is required to maintain the confidentiality and security of
information obtained in a manner substantially equivalent
to Article 14;
(5) must be produced by the administrator under an
administrative or judicial subpoena or administrative or
court order; and
(6) must be produced by the administrator on request of
the person subject to the examination in an administrative
or judicial proceeding relating to the property.
(Source: P.A. 100-22, eff. 1-1-18.)
(765 ILCS 1026/15-1401)
Sec. 15-1401. Confidential information.
(a) Except as otherwise provided in this Section,
information that is confidential under law of this State other
than this Act, another state, or the United States, including
"private information" as defined in the Freedom of Information
Act and "personal information" as defined in the Personal
Information Protection Act, continues to be confidential when
disclosed or delivered under this Act to the administrator or
administrator's agent.
(b) Information provided in reports filed pursuant to
Section 15-401, information obtained in the course of an
examination pursuant to Section 15-1002 or Section 15-1002.1,
and the database required by Section 15-503 is exempt from

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disclosure under the Freedom of Information Act.
(c) If reasonably necessary to enforce or implement this
Act, the administrator or the administrator's agent may
disclose confidential information concerning property held by
the administrator or the administrator's agent to:
(1) an apparent owner or the apparent owner's
representative under the Probate Act of 1975, attorney,
other legal representative, or relative;
(2) the representative under the Probate Act of 1975,
other legal representative, relative of a deceased
apparent owner, or a person entitled to inherit from the
deceased apparent owner;
(3) another department or agency of this State or the
United States;
(4) the person that administers the unclaimed property
law of another state, if the other state accords
substantially reciprocal privileges to the administrator
of this State if the other state is required to maintain
the confidentiality and security of information obtained
in a manner substantially equivalent to Article 14;
(5) a person subject to an examination as required by
Section 15-1004; and
(6) an agent of the administrator.
(d) The administrator may include on the website or in the
database the names and addresses of apparent owners of property
held by the administrator as provided in Section 15-503. The

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administrator may include in published notices, printed
publications, telecommunications, the Internet, or other media
and on the website or in the database additional information
concerning the apparent owner's property if the administrator
believes the information will assist in identifying and
returning property to the owner and does not disclose personal
information as defined in the Personal Information Protection
Act.
(e) The administrator and the administrator's agent may not
use confidential information provided to them or in their
possession except as expressly authorized by this Act or
required by law other than this Act.
(Source: P.A. 100-22, eff. 1-1-18; 100-566, eff. 1-1-18.)
(765 ILCS 1026/15-1402)
Sec. 15-1402. Confidentiality agreement. A person to be
examined under Section 15-1002 or Section 15-1002.1 may
require, as a condition of disclosure of the records of the
person to be examined, that the administrator or the
administrator's agent execute and deliver to the person to be
examined a confidentiality agreement that:
(1) is in a form that is reasonably satisfactory to the
administrator; and
(2) requires the person having access to the records to
comply with the provisions of this Article applicable to
the person.

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(Source: P.A. 100-22, eff. 1-1-18.)
Section 99. Effective date. This Act takes effect upon
becoming law.