Thursday, August 18, 2011
Illinois changes state's unclaimed property law
On Aug. 8, 2011, Illinois enacted HB 1560, which immediately takes effect. HB 1560 lowers the unclaimed property abandonment period from five years to one. Unclaimed wages, payroll and salary in any form – such as prepaid payroll cards – that are held or owed by a bank, financial institution or business association, are considered abandoned and reportable to the state after one year.
The law states that Illinios can seize "unclaimed wages, payroll, or salary, that has been outstanding for more than one year from the date of its issuance."
Cash-strapped states are rewriting unclaimed property laws as a way to claim more funds. Laura Lane, Vice President at Keane, told SellingPrepaid in February 2011 that Michigan lowered the dormancy period on unclaimed accounts payable funds from five years to three in order for the state to get a "one-time infusion of cash from the lower dormancy period."
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