Posted on Jul 21, 2017 by JMS Advisory Group |
On July 6, 2017, the Illinois House voted to override Governor Bruce Rauner's veto of SB9, a revenue bill relating to Illinois new fiscal year budget. Right before this vote, SB 9 was amended to include the Revised Uniform Unclaimed Property Act (RUUPA). This RUUPA becomes effective January 1, 2018.
See the entire bill here (RUUPA starts on page 6)
The new law includes provisions relating to gift cards, loyalty cards, stored value cards (as a separate, non-exempt property type), virtual currency and game-related digital currency. An important omission in this new law however, results in the de facto repeal of the business-to-business exemption, 765 I.L.C.S. Sec. 1025/2a. Adding insult to injury, Section 15-1503 in the RUUPA contains a "transitional provision" that will require holders to report previously exempted items for the prior 5 year period. This transitional provision is likely to throw the holder community into an uproar.
A silver lining to these developments is the fact that there is already a repeal bill that has been promulgated, IL HB4078, which would repeal the State Tax Lien Registration Act and the Revised Uniform Unclaimed Property Act created by SB9. This repeal bill has 20 co-sponsors (all Republicans), and will likely not be deliberated on until November on 2017, just a few weeks before SB9 is scheduled to take effect. Let’s collectively keep our fingers crossed.
Stay tuned to our website for the latest developments on this matter, and other happenings in the world of unclaimed property.