Illinois treasurer opposes unclaimed property bill sponsored by McHenry senator

McHENRY – Illinois' state treasurer has opposed a bill sponsored by state Sen. Pamela Althoff.

Althoff has sponsored Senate Bill 2901, which deals with unclaimed property.

The bill limits authority of the treasurer’s office by eliminating the ability to contract an auditor to look into unclaimed property. It also offers a two-year extension on time that property can be unclaimed before it is presumed abandoned. The property now will be presumed abandoned after five years instead of three.

Examples of unclaimed property include forgotten bank accounts, unclaimed rebate checks and unpaid life insurance benefits.

Between 2011 and the present, auditors have found more than $550 million in rebates and unpaid benefits, state Treasurer Michael Frerichs said.

Under Illinois law, unclaimed property falls under the treasurer’s responsibility.

Frerichs said that the office pursues the return of property no matter how long it takes. Removing the ability to hire auditors would hinder that cause.

“On what planet does keeping something that you know does not belong to you deserve to be protected by special legislation?” Frerichs said. “Honest mistakes happen. That is why every industry in America uses audits. If this legislation comes to pass, it would be impossible to identify which companies were following the rules, regardless of their intent.”

The Senate heard the bill Feb. 14, and it has moved on to the state judiciary.

Althoff was not available for comment.