Page 26 - 2Q 2018 June Reporter
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This legislative year was a relative success kept the legislation from passing out of the
for the Illinois League of Financial Institutions. Senate. Through negotiation with the Treasurer
While we did not achieve all our legislative we secured an amendment to HB 3806 as the
priorities for the year, we did achieve the end of session approached. HB 3806 made
passage of multiple bills. Equally important, several positive changes including reinstating a
we were able to fight back numerous bills that presumptive period of abandonment of 5 years
negatively affected the membership. The for certain time deposits. The bill also reinstated
balance of 2018 represents the remainder of the visitation standards for federally chartered financial
100th General Assembly and the remainder of institution examinations of unclaimed property and
Governor Rauner’s first term. This time frame clarified procedures for multiple accounts held by
also represents what will be the most expensive the same owner. The bill deleted a requirement
election in Illinois’ history. Hundreds of millions that a financial institution must provide a telephone
have already been spent and hundreds of number to consumers to inquire about unclaimed
millions will continue to be spent through the property. The bill passed the Senate, which was
next 5 months. the major stumbling block. The legislation is
A key issue for The League this year was poised to pass the House in November when the
trying to reverse some of the negative aspects House returns for veto session.
of the changes to the Unclaimed Property Act. Two items of legislation that the League
SB 9 from last year made numerous changes to strongly supported did pass the General
the Act, including decreasing the time for deposit Assembly and are going to the Governor’s
accounts to be turned over to the Treasurer desk for his signature. HB 4541 clarified that
and bringing in third party investigators to a municipality may use a savings bank as their
examine that the property is being turned over financial institution for all banking purposes of the
in accordance with the law. We worked with municipality. Under current law, a municipality
a broader coalition representing a variety of was forced to use a state or federal bank. The
financial institutions to introduce SB 3229, other important item of legislation is HB 4589, an
which brought the period for abandonment back initiative of the League. This legislation removed
up to five years and made several changes burdensome auditing requirements from savings
to the commissions to investigators for failure banks. This was introduced and passed in
of financial institutions to escheat unclaimed response to the Department mandating expensive
property. The legislation made it out of Senate audits of savings banks that did not match up with
Committee, but the Treasurer’s opposition state bank requirements. This legislation removed
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June 2018 IllInoIs RepoRteR
