Because shortening the dormancy period has the effect of allowing the state to take custody of unclaimed property sooner, states have frequently resorted to shortening the dormancy periods for unclaimed property to generate more revenue. For example, Michigan shortened the dormancy period for nearly all property types from 5 years to 3 years. According to the Michigan House Fiscal Agency this change was projected to result in increased revenue to the state in excess of $200 million.
Against this backdrop, it is little surprise to see that there is a bill pending in the Illinois General Assembly that, if enacted, would change the dormancy period for most property types. But, there's a twist - House Bill 5823 would actually lengthen the dormancy period for most property types under Illinois law, from 5 years to 8 years. There is no accompanying legislative report or recommendation (as yet) explaining the rationale for the proposal, but the longer dormancy period would conceivably cut down on the amount of non-unclaimed property that gets swept up into state coffers.