Bill Text: IL SB2142 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Revised Uniform Unclaimed Property Act. Provides that property due or owed by a business association resulting from a transaction occurring in the normal and ordinary course of business is exempt from the Act. Provides that an action or proceeding may not be maintained by the administrator more than 10 years after the holder filed a nonfraudulent report with the administrator (rather than after the holder specifically identified the property in a report filed with the administrator or gave express notice to the administrator of a dispute regarding the property). Deletes language regarding the tolling of the period of limitation. Provides instead that the parties may agree to extend the period of limitation. Provides that the administrator may not commence an action, proceeding, or examination with respect to a duty of a holder more than 10 years after the duty arose. Provides that if a person subject to examination does not retain the records, the administrator may use specific estimation techniques to determine the amount of unclaimed property and shall incorporate a net method of extrapolation (rather than determine the value of property due using a reasonable method of estimation based on all information available to the administrator). Deletes language providing that a payment made based on estimation is a penalty for failure to maintain the records and does not relieve a person from an obligation to report and deliver property to a State in which the holder is domiciled. Provides that a holder may request a hearing to contest the use or validity of the estimation technique. Provides that the examination is final upon the failure of the holder to request a hearing. Provides that if a hearing is held, the State Treasurer shall issue an order approving or disapproving the use or validity of the estimation techniques. Deletes language providing that if the administrator contracts with a person, the contract may provide for compensation of the person based on a contingent fee. Deletes language providing that an initial report filed for property that was not required to be reported before the Act took effect must include all items of property that would have been presumed abandoned during the 5-year period preceding the effective date as if the Act had been in effect during that period.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-05-21 - Rule 3-9(a) / Re-referred to Assignments [SB2142 Detail]

Download: Illinois-2021-SB2142-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB2142 Introduced 2/26/2021, by Sen. Dan McConchie SYNOPSIS AS INTRODUCED:
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Amends the Revised Uniform Unclaimed Property Act. Provides that property due or owed by a business association resulting from a transaction occurring in the normal and ordinary course of business is exempt from the Act. Provides that an action or proceeding may not be maintained by the administrator more than 10 years after the holder filed a nonfraudulent report with the administrator (rather than after the holder specifically identified the property in a report filed with the administrator or gave express notice to the administrator of a dispute regarding the property). Deletes language regarding the tolling of the period of limitation. Provides instead that the parties may agree to extend the period of limitation. Provides that the administrator may not commence an action, proceeding, or examination with respect to a duty of a holder more than 10 years after the duty arose. Provides that if a person subject to examination does not retain the records, the administrator may use specific estimation techniques to determine the amount of unclaimed property and shall incorporate a net method of extrapolation (rather than determine the value of property due using a reasonable method of estimation based on all information available to the administrator). Deletes language providing that a payment made based on estimation is a penalty for failure to maintain the records and does not relieve a person from an obligation to report and deliver property to a State in which the holder is domiciled. Provides that a holder may request a hearing to contest the use or validity of the estimation technique. Provides that the examination is final upon the failure of the holder to request a hearing. Provides that if a hearing is held, the State Treasurer shall issue an order approving or disapproving the use or validity of the estimation techniques. Deletes language providing that if the administrator contracts with a person, the contract may provide for compensation of the person based on a contingent fee. Deletes language providing that an initial report filed for property that was not required to be reported before the Act took effect must include all items of property that would have been presumed abandoned during the 5-year period preceding the effective date as if the Act had been in effect during that period.
LRB102 16289 LNS 21671 b
A BILL FOR
SB2142 LRB102 16289 LNS 21671 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, 15-610, 15-1006, 15-1009,
and 15-1503 as follows:
(765 ILCS 1026/15-201)
Sec. 15-201. When property presumed abandoned.
(a) 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, 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) a demand, savings, or time deposit, 3 years after

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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
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.

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(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;
(C) 40 years after the contract for prepayment was
executed, unless the apparent owner has indicated an
interest in the property more than 40 years after the
contract for prepayment was executed, in which case, 3
years after the last indication of interest in the
property by the apparent owner;
(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;

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(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;
(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.
(b) 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

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years, then the property, other than an amount owed by an
insurance company on a life or endowment insurance policy or
an annuity contract 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.
(c) Notwithstanding anything to the contrary in this
Section, a property due or owed by a business association
resulting from a transaction occurring in the normal and
ordinary course of business is exempt from this Act.
(Source: P.A. 100-22, eff. 1-1-18; 100-566, eff. 1-1-18;
101-552, eff. 1-1-20.)
(765 ILCS 1026/15-610)
Sec. 15-610. Periods of limitation and repose.
(a) Expiration, before, on, or after the effective date of
this Act, of a period of limitation on an owner's right to
receive or recover property, whether specified by contract,
statute, or court order, does not prevent the property from
being presumed abandoned or affect the duty of a holder under
this Act to file a report or pay or deliver property to the
administrator.
(b) An action or proceeding may not be maintained by the
administrator to enforce this Act in regard to the reporting,
delivery, or payment of property more than 10 years after the
holder filed a nonfraudulent report with the administrator.
The parties may agree to extend the period of limitation in

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this subsection specifically identified the property in a
report filed with the administrator or gave express notice to
the administrator of a dispute regarding the property. In the
absence of such a report or other express notice, the period of
limitation is tolled. The period of limitation is also tolled
by the filing of a report that is fraudulent.
(c) The administrator may not commence an action,
proceeding, or examination with respect to a duty of a holder
under this Act more than 10 years after the duty arose.
(Source: P.A. 100-22, eff. 1-1-18.)
(765 ILCS 1026/15-1006)
Sec. 15-1006. Failure of person examined to retain
records.
(a) If a person subject to examination under Section
15-1002 does not retain the records required by Section
15-404, the administrator may use estimation techniques that
conform to either generally accepted auditing standards or
generally accepted accounting principles to determine the
amount of unclaimed property. In the conduct of an
examination, the State shall not request any records of a
holder that relate to property that is not subject to this Act.
The estimation techniques used shall incorporate a net method
of extrapolation determine the value of property due using a
reasonable method of estimation based on all information
available to the administrator, including extrapolation and

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use of statistical sampling when appropriate and necessary,
consistent with examination procedures and standards adopted
under Section 15-1003. For purposes of this Section, "net
method" means the numerator is only property located in this
State or State-sourced property and the denominator is a
reasonable surrogate, such as sales or payroll. A payment made
based on estimation under this Section is a penalty for
failure to maintain the records required by Section 15-404 and
does not relieve a person from an obligation to report and
deliver property to a State in which the holder is domiciled.
(b) Within 60 business days of the receipt of a final
examination report, a holder may request a hearing to contest
the use or validity of the estimation techniques. The
examination is final upon the failure of the holder to request
a hearing as provided in this Section. If a hearing is held,
the State Treasurer shall issue an order approving or
disapproving the use or validity of the estimation techniques.
The order is final under the Administrative Review Law.
(Source: P.A. 100-22, eff. 1-1-18.)
(765 ILCS 1026/15-1009)
Sec. 15-1009. Administrator's contract with another to
conduct examination.
(a) The administrator may contract with a person to
conduct an examination under this Article. The contract shall
be awarded pursuant to a request for proposals issued in

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compliance with the procurement rules of the administrator.
(b) If the administrator contracts with a person under
subsection (a):
(1) the contract may provide for compensation of the
person based on a fixed fee, or hourly fee, or contingent
fee;
(2) (blank); and a contingent fee arrangement may not
provide for a payment that exceeds 15% of the amount or
value of property paid or delivered as a result of the
examination; and
(3) as authorized in the State Officers and Employees
Money Disposition Act, the administrator may permit the
deduction of fees from property recovered during an
examination under this Article prior to depositing funds
received under this Act into the Unclaimed Property Trust
Fund.
(c) A contract under subsection (a) is a public record
under the Freedom of Information Act.
(Source: P.A. 100-22, eff. 1-1-18.)
(765 ILCS 1026/15-1503)
Sec. 15-1503. Transitional provision.
(a) (Blank). An initial report filed under this Act for
property that was not required to be reported before the
effective date of this Act, but that is required to be reported
under this Act, must include all items of property that would

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have been presumed abandoned during the 5-year period
preceding the effective date of this Act as if this Act had
been in effect during that period.
(b) This Act does not relieve a holder of a duty that arose
before the effective date of this Act to report, pay, or
deliver property. A Subject to subsection (b) of Section
15-610, a holder that did not comply with the law governing
unclaimed property before the effective date of this Act is
subject to applicable provisions for enforcement and penalties
in effect before the effective date of this Act.
(Source: P.A. 100-22, eff. 1-1-18.)
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INDEX
Statutes amended in order of appearance