Paying Down Pension Debt | Protecting Consumers | Helping Homeowners | Closing Loopholes |
Encouraging College Savings | Enhancing Financial Literacy | Saving Military Medals

Click on the HB (House Bill) number or SB (Senate Bill) number to view further details and status of the legislation on the Illinois General Assembly website.

Paying Down Pension Debt

HB 5088 / Molaro (D-21st)
SB 2430/ Demuzio (D-49th)
House Bill 5088 and Senate Bill 2430 would ensure that money transferred from the State Treasurer’s Unclaimed Property Fund would go directly toward paying down the state’s $43 billion unfunded pension liability, the highest in the nation. Currently, unclaimed property money from the Treasurer’s Office offsets the state’s annual pension contribution. “This unclaimed property money should add to what the state is already contributing so the pension liability gets paid down more quickly,” Treasurer Giannoulias said. “The legislation would also allow the Treasurer to deposit unclaimed property money into the State Pension Fund prior to October and April to generate a higher rate of return for the state’s retirement systems. HB 5088 was approved by the Illinois House Judiciary Committee on March 12 and by the House on April 3 by a vote of 108-0-0. HB 5088 unanimously passed out of the Senate Pensions and Investments committee on May 8 and the Senate on May 31. The Governor signed HB 5088 into law on August 29, 2008, effective the same day.  (Public Act #095-0950)

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Protecting Consumers

HB 5373/ Osterman (D-14th)
SB 2636/ Harmon (D-39th)
House Bill 5373 and Senate Bill 2636 would prohibit private for-profit finder firms from charging Illinois residents outrageous fees for re-uniting them with their unclaimed property – something they can do themselves for free. Under current law, finder firms are not required to inform residents of any details about their unclaimed property – lost or abandoned property and money belonging to residents who companies and financial institutions have been unable to track down. The legislation would require finder firms to disclose the name of the institution holding the unclaimed property to make it easier for the rightful owners to locate. In addition, it would place a cap on the fees that a finder firm could charge a consumer. SB 2636 was approved by Illinois Senate State Government and Veteran’s Affairs Committee on March 6 and the Senate April 16. The bill was approved by the House May 31 by a vote of 113-0-0.  The Senate concurred on July 10 and SB 2636 moved to the Governor's desk on August 8, 2008.

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Helping Homeowners Who Face Foreclosure

HB 4611/ Howard (D-34th)
House Bill 4611 targets Illinois homeowners who have financed their homes using adjustable rate mortgages (ARMs) that are scheduled to reset at higher interest rates, making them difficult to afford.  “Lawmakers need to not only prevent the kind of predatory lending that sets up the homebuyer for failure, but also help homeowners before they are in danger of losing their homes,” Treasurer Giannoulias said. The legislation is designed to offer a 10 percent guarantee to lenders so they can refinance borrowers who are at risk of falling behind on making payments when their variable interest rate resets.  HB 4611 passed the House Housing and Urban Development Committee on March 12 and passed out of the House on April 9 on a vote of 115-0-0. HB 4611 unanimously passed out of the Senate Housing and Community Affairs Committee on May 7 and unanimously passed out of the Senate on May 20.  The Governor signed the bill into law on August 15, 2008, effective the same day.  (Public Act #095-0834)

HB 4191/ Yarbrough (D-7th), Collins (D-16th)
House Bill 4191 (State Rep. Yarbrough and State Sen. Collins) would expand the State Treasurer’s Our Own Home Program which currently assists homeowners by allowing them to refinance after they have missed at least one mortgage payment due to particular a financial hardship. Treasurer Giannoulias’ legislation offers the 10 percent security to homeowners so they can refinance their mortgages before they miss a payment and faces foreclosure. HB 4191 passed out of the House on January 10 and is currently assigned to the Senate Financial Institutions Committee.

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Closing Loopholes to Recover State Funds

HB 4732/ Burke (D-23rd)
SB 1995/ Bond (D-31st)
House Bill 4732 and Senate Bill 1995 would allow the state to recover funds if Bright Start College Savings Program and Bright Directions College Savings Program do not spend their savings plan money on college costs. When Illinois residents invest in one of Illinois 529 college savings plans, they can deduct contributions of up to $10,000 per year. (Married couples can deduct up to $20,000 per year if they file jointly). Under current law, account holders do not have to pay back the money claimed for tax deductions if they make non-qualified withdrawals to pay for expenses unrelated to their higher education. The legislation would allow the state to recapture the exact dollar amount deducted for each non-qualified withdrawal. Currently, 34 states offer tax deductions to state residents investing in 529 plans. Including Illinois, only five of these states do not recapture the income tax deduction for non-qualified withdrawals. Closing this loophole would earn the state up to $200,000 in lost revenue. HB 4732 was approved by the Illinois House Revenue Committee on March 14 and passed out of the House on April 3 by a 84-20-0 vote. SB 1995 passed out of the Illinois Senate Revenue Committee on March 13 and passed out of the Senate on April 9 by a 57-0-1 vote.

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Encouraging College Savings

HB 4579/ Miller (D-29th)
SB 1981/ Clayborne (D-57th)
House Bill 4579 and Senate Bill 1981 is designed to encourage Illinois employers to contribute to the college costs of their employees children through tax incentives. The bill would offer a tax credit to employers that match their employees’ contributions to their college saving accounts. Participants in any of the state’s 529 plans – Bright Start College Savings Program, Bright Directions College Savings Program or College Illinois – are eligible. Under the legislation, employers could match up to 25 cents of every dollar that an employee contributes, but could not exceed an annual match of more than $500 per employee. The amount of tax credit would equal the amount the employer contributes to the employee’s account. SB 1981 passed the Senate 50-0-0 on April 1 and will now head to the House.

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Enhancing Financial Literacy

HB 4866/ Graham (D-78th)
SB 2098/ Wilhelmi (D-43rd)
House Bill 4866 and Senate Bill 2098 authorizes the Treasurer to establish Dollars and Sense, a not-for-profit corporation that will promote the core mission of the State Treasurer’s Office and without using taxpayer dollars. Funding for Dollars and Sense would come entirely from private donations and would be used specifically for the purposes for promoting financial literacy and savings as well as issuing grants and scholarships. The non-profit, which will remain affiliated with the Treasurer’s Office for  future administrations to use, is designed to bolster its financial education efforts by offering courses and symposiums that focus on reducing debt, combating foreclosure, saving for retirement and protecting against consumer fraud and predatory lending practices. If passed, the new law will require Dollars and Sense, which will maintain its own board of directors and abide by its own bylaws, to make information about how it raises and spends money transparent and available to the public. HB 4866 was passed by the Illinois House State Government Administration Committee on March 5 and passed out of the House on April 2 by a vote of 110-0-0. SB 2098 was approved by Illinois Senate Financial Institutions Committee on February 28 and passed out of the Senate on April 9 on a 57-0-0 vote.  The Governor signed SB 2098 into law on August 26, 2008, effective the same day.  (Public Act #095-0920)

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Saving Military Medals

HB 5904/ Stephens (R-102nd)

House Bill 5904 would prohibit the Illinois State Treasurer’s office from selling lost or abandoned military medals at an auction.  Financial institutions are required to turn over lost and abandoned safe deposit boxes, which sometimes contain military medals, to the Unclaimed Property Division of the Treasurer’s Office if the owners cannot be located for five years. The state holds the valuables in its vault at the Capitol while it attempts to find the rightful owners or heirs. Unlike other types of unclaimed property, the Treasurer’s Office never sends the medals to auction. Instead, the medals are displayed at events throughout the state through the Operation Search and Restore program, in an attempt to find their proper homes. House Bill 5904 codifies the program and makes certain that Operation Search and Restore is etched into Illinois law for future generations of military members and their families.  HB 5904 was approved by the House on April 3 by a vote of 108-0-0 and unanimously passed out of the Senate on May 20.  The Governor signed the bill into law on August 14, 2008, effective the same day.  (Public Act #095-0829)

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