TRUST CODE-UNCLAIMED PROPERTY
SB1667 makes a series of changes to Illinois law governing unclaimed property, state employee leave payouts, and trust administration. In the State Finance Act, it revises how the State Comptroller handles payments owed to deceased state employees for accrued vacation, overtime, and qualifying sick leave, and adds a new rule requiring funds owed to a deceased state employee to be paid to heirs or the estate within one year before any remaining amount is reported as unclaimed property. It also directs the Department of Central Management Services to continue prescribing methods for calculating leave balances and clarifies how certain leave-related benefits are computed.
The bill also amends the Illinois Trust Code to require trustees to search for and, if practicable, claim unclaimed property, and to keep certain trust instruments and records for at least seven years after a trust terminates. The largest set of changes is to the Revised Uniform Unclaimed Property Act, where the bill updates definitions, shortens some dormancy periods, adds notice and reporting requirements for certain state and local government property, and creates new rules for property held in trust and for funds owed to deceased state employees. It also establishes a new licensing system for “finders” who locate unclaimed property for a fee, including application requirements, background checks, fidelity bond requirements, renewal rules, disciplinary authority, civil penalties, and limits on contingency fees and agreements with owners. The bill further gives the Secretary of Financial and Professional Regulation limited authority to require regulated persons to accelerate reporting and remittance of property in order to protect owners, while exempting banks, savings banks, and credit unions organized under Illinois law from that section.
SB1667 amends the State Finance Act, the Illinois Trust Code, and multiple sections of the Revised Uniform Unclaimed Property Act (765 ILCS 1026). It creates new statutory duties for holders of presumed abandoned property, trustees, state agencies, and the State Treasurer, while also adding a new regulatory framework for finder licensing and enforcement. The bill affects state employees and their estates, trust administrators, financial institutions, regulated persons under the Department of Financial and Professional Regulation, and anyone seeking to recover unclaimed property on behalf of an owner.
The bill appears to have broad legislative support. It passed the Senate 54-0 and the House 73-40, suggesting strong approval in the Senate and a more divided but still successful vote in the House. The absence of committee transcript material limits insight into detailed debate, but the voting history indicates the measure was generally viewed favorably overall.
The most notable points of contention are likely the new regulation of finders and the expanded state authority over unclaimed property reporting. The bill imposes a licensing regime, background checks, bond requirements, fee limits, and enforcement tools on finders, which may be seen as consumer-protection measures by supporters but as burdensome regulation by opponents. It also gives the Secretary of Financial and Professional Regulation discretionary authority to accelerate reporting and remittance of property, and it changes timing rules for when certain property is presumed abandoned, which could raise concerns among holders, financial firms, and service providers. The House vote margin suggests some disagreement, though the bill still cleared both chambers.