Illinois Rep. Kelly’s treasurer claims clarification bill passes House and Senate

Passed bill authored by State Rep. Michael J. Kelly aims to clarify the treasurer’s authority to bring claims for state funds without certain statutory limitations, reflecting legislative intent to affirm existing law, according to the Illinois General Assembly.

In the House, 67 Democrats and 32 Republicans voted in favor of the bill.

Meanwhile, in the Senate, 39 Democrats and 18 Republicans voted in favor of the bill, while one Republican voted against it.

Kelly introduced the bill in the Illinois House on Jan. 23, 2026 during the 104th session.

The legislation, known as HB4560, was passed on May 14, 2026 during the general assembly session 104.

According to the Illinois General Assembly site, the legislature summarized the bill’s official text as follows: “Amends the State Treasurer Act. Provides that the State Treasurer may bring a claim against a warrantor of a draft for breach of a presentment warranty to recover State funds in accordance with the Uniform Commercial Code. Provides that a claim brought by the State Treasurer is not subject to the limitations provided for in those provisions of the Uniform Commercial Code. Provides that the amendatory changes are declaratory of existing law. Effective immediately.”

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill amends the State Treasurer Act to expressly authorize the treasurer to bring claims against a warrantor of a draft for breach of a presentment warranty to recover state funds under Sections 3-417 and 4-208 of the Uniform Commercial Code. It specifies that such claims by the treasurer are not subject to the time or other limitations in subsection (e) of those sections, effectively removing those statutory constraints for the state. The bill states that these changes are declaratory of existing law, indicating the Legislature’s intent to clarify rather than change current practice. The bill takes effect immediately upon becoming law.

The bill was sponsored by Rep. Diane Blair-Sherlock (Democrat-46th District), Sen. Lakesia Collins (Democrat-5th District), and Sen. Michael W. Halpin (Democrat-36th District).

Bills in Illinois follow a multi-step legislative process, beginning with introduction in either the House or Senate, followed by committee review, floor debates, and votes in both chambers before reaching the governor for approval or veto. The General Assembly operates on a biennial schedule, and while typically thousands of bills are introduced each session, only a fraction successfully pass through the process to become law.

You can read more about bills and other measures here.

Kelly graduated from Quincy University with a BA.

Kelly, a Democrat, was elected to the Illinois State House in 2021 to represent the state’s 15th House District, replacing previous state representative John C. D’Amico.

Some lawmakers were physically present but did not vote. Those marked “Present” formally abstained by choosing not to vote either “Yea” or “Nay”, while those listed as “Not Voting” were in attendance but did not cast any vote. Others were not present at all—either listed as “Absent” without formal explanation or marked as having an “Excused Absence”, indicating their absence was approved in advance, often for personal or medical reasons.