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9/12/17 10:00 AM

Illinois Passes Budget - Includes Complete Rewrite of Unclaimed Property Act

by Clive Cohen

illinois.jpgOn July 6, 2017 the Illinois House of Representatives passed Public Act 100-0022 (Public Act), the revenue bill that supports Illinois’ fiscal year 2017/18 budget.  This Act is the former Illinois’ Senate Bill 9 (SB9), which was amended in the days before the Public Act vote to include a revised version of House Bill (HB) 2603, the Illinois Unclaimed Property Bill. 

Article 15 of the Public Act, which takes its’ wording directly from the revised version of HB 2603, is a complete rewrite of Illinois’ unclaimed property law, and is entitled Revised Uniform Unclaimed Property Act (IL RUUPA).  The IL RUUPA is an implementation of the Uniform Law Commission’s 2016 Revised Uniform Unclaimed Property Act (ULC RUUPA), and becomes effective January 1, 2018.

The IL RUUPA includes almost all aspects of the ULC RUUPA, including the following:

  • Record retention requirements (10 years after the later of the date the report was filed or the last date a timely report was due to be filed)
  • Electronic due diligence
  • Reduction in general dormancy periods from 5 to 3 years
  • The exclusion from reporting of loyalty cards and game-related digital content
However, the IL RUUPA no longer exempts various items that were previously exempted including, most significantly, business-to-business transactions.

 

Notably, the IL RUUPA also includes a transitional requirement that holders retroactively report property types that were previously exempt.  This specific provision [section 15-1503(a)] states that holders are to “include all items of property that would 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” on their initial report.    Due to dormancy periods, this means that IL business-to-business transactions with last contact dates as far back as 2010 that were not previously reported, must now be reported on a holder’s 2018 report.

The signing of the Public Act and the introduction of the IL RUUPA, represents Illinois’ efforts to overhaul their escheat laws.  It is worth noting however, that two repeal bills have already been introduced in the Illinois General Assembly (HB 4078 and SB 2224, both of which would repeal the RUUPA sections upon SB 9’s becoming law). It appears that Illinois’ unclaimed property law may be in flux for at least the foreseeable future and holders should continue to stay tuned for any further bills Illinois introduces that may result in additional revisions to this new escheat law. 

MarketSphere will be monitoring and providing updates to this and any other related bills. If you need additional unclaimed property resources, visit the Knowledge Vault for educational and support materials.