On January 21, 2014, Illinois House Bill 4242 was introduced into the Illinois Legislature. HB 4242 provides that due diligence must now be sent by certified mail. If passed, Illinois would be joining a handful of other states that require certified mailings as part of the due diligence requirements.
The bill also outlines a specific process in regard to the required communication and activity 45 days prior between the holder, State Treasurer, and the Department of Revenue.
HB 4242 sets forth a provision to “pre-report” 45 days prior to the reporting and remitting of property. Under the law, the holder of the property will be required to notify the State Treasurer that the holder believes the property is subject to being reported and remitted pursuant to the unclaimed property act and must provide the State Treasurer with detailed information about the owner of the property to be reported.
This provision to “pre-report” before the official report is due is a novel one. No other state has a requirement like the pre-report requirement contained in this bill, although it could be likened to California’s separate report and remit requirements. It appears that the Illinois legislature is attempting to require the state officials to accomplish more comprehensive owner outreach before property is remitted. This is similar to California’s goals in requiring a report date, followed by state outreach, followed by a separate remit date.
The Keane Compliance Team will continue to monitor HB 4242 and track its progress. To receive complete details regarding Illinois House Bill 4242, please login to Keane’s Compliance Portal and refer to the Legislative Alerts section. Details on this bill can also be found within the Legislative Tracking areas for subscribers of that feature.