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HB 2570

Poor persons; Poor Persons Act of 2025; effective date.

2025 Regular Session Introduced by Kyle Hilbert

Creates a state Surrogacy Agreement Escrow Protection Fund to restitution for escrow losses from gestational surrogacy, funded by $1,000 annual fees on escrow entities.

Second Reading referred to Rules
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Bill Summary · HB 2570

Summary — HB 2570: Surrogacy Agreement Escrow Protection Fund (Illinois)

Status (final): Passed both chambers and transmitted to the Governor (May 6, 2025); vetoed by the Governor (May 12, 2025).

Sponsors: Rep. Jay Hoffman (primary); Rep. Barbara Hernandez (cosponsor)

Note: The bill file also contained unrelated text from a groundwater bill (Arizona); this summary covers HB 2570 as amended in Illinois addressing a surrogacy escrow protection fund.

Purpose / Intent

Create a dedicated state fund to provide restitution to persons who suffer monetary loss arising from escrow transactions associated with gestational surrogacy contracts regulated by the Gestational Surrogacy Act. The measure aims to offer a limited financial backstop for victims of escrow failures in the surrogacy context and to fund that backstop via modest fees on entities that perform required escrow transactions.

Key provisions

  • Creation of fund

    • Establishes the “Surrogacy Agreement Escrow Protection Fund” as a special fund in the State treasury (new Section added to the State Finance Act and the Gestational Surrogacy Act).
    • All monies and income deposited into the Fund are held as a special fund and used solely for restitution related to escrow losses under the Gestational Surrogacy Act.

  • Restitution rules

    • Restitution may be ordered only by the Director of Public Health.
    • Restitution payments cannot exceed the actual amount lost.
    • The Fund may not be used to pay attorney’s fees or other fees.
    • Payment from the Fund is discretionary ("a matter of grace") — applicants have no vested right to Fund payments.
    • Applicants must apply to the Director on a form and provide information the Director requires to determine restitution.
    • Persons with qualifying escrow losses on or after January 1, 2023, may apply for restitution.

  • Subrogation and collection

    • The Fund is subrogated to amounts paid; the Director is authorized to seek collection from the party responsible for the loss and to engage reasonable collection actions, including assistance from the Attorney General or other counsel, to reimburse the Fund.

  • Revenue / assessments

    • Every entity in the State that engages in escrow transactions required by the Act is assessed an annual fee of $1,000. (Amendment 002 clarifies collection timing.)
    • Fees are to be collected by the Department of Public Health on or before June 30, 2026, and each June 30 thereafter.
    • If the Fund balance falls below $150,000, the Director may assess a special fee to restore the balance above $150,000; each entity’s share of that special fee is proportional to the percentage of escrow funds each entity handled in the previous calendar year.
    • If the Director orders restitution greater than the Fund’s remaining balance, payments may be delayed until sufficient funds are available, or the Director may impose a special proportional fee on escrow entities to raise the ordered restitution amount.

Who is affected

  • Individuals (intended parents, surrogates, or other beneficiaries) who suffer monetary loss from escrow transactions related to gestational surrogacy contracts (losses from Jan 1, 2023 onward are eligible).
  • Entities that hold or handle escrow funds for gestational surrogacy (escrow agents, possibly clinics, attorneys or trust companies required by the Act) — these entities will pay the annual $1,000 assessment and may be assessed special fees when the Fund needs replenishment.
  • Illinois Department of Public Health / Director of Public Health — responsible for administering applications, ordering restitution, collecting fees, and pursuing subrogation/collection.

Procedural / timeline notes

  • Applicants may seek restitution for qualifying losses occurring on or after January 1, 2023.
  • Annual fees begin collection by June 30, 2026, and recur annually.
  • Special fee triggers: Fund balance < $150,000 or restitution ordered exceeds current Fund balance.
  • Legislative action: The bill was amended in the House (House Amendment 001 and a more extensive House Amendment 002), passed the General Assembly, transmitted to the Governor, and subsequently vetoed (May 12, 2025). As vetoed, the bill did not take effect unless the veto is overridden.

Practical impact (if enacted)

  • Provides a limited restitution mechanism for victims of escrow failures in gestational surrogacy.
  • Places a modest recurring compliance cost on entities that manage surrogacy escrow accounts.
  • Establishes administrative responsibilities for the Department of Public Health to adjudicate claims, collect fees, and pursue recovery from responsible parties.

If you want, I can produce a one-page bill text comparison showing the differences between the introduced version and House Amendment 002 (final amended language).

Compiled from official sources — confirm details with the bill’s official record.

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