Keane's Unclaimed Property Blog

Spring 2010: Dormancy Periods, State Unclaimed Property Laws, & Reporting Legislative / Regulatory Updates

State Dormancy Periods Regulations

Arizona Dormancy Periods

HB 2003, SB 1003
Introduced 12/17/09

This bill proposes to change the dormancy period for traveler’s checks back to 15 years from 3 years.

HB 2111
Introduced 1/10/10, Engrossed 2/16/10

This bill proposes to change the dormancy period for traveler’s checks back to 15 years from 3 years.

AZ HB 2170
Introduced 1/13/10

Identifies the effective date of the chapters when initial reports were required to reported, as January 1, 2001.

HB 2453
Introduced 1/21/10, Engrossed 2/23/10

HB 2453 seeks to return the dormancy period for security property from the recently passed 2 year dormancy period to 3 years.    The stated purpose for this bill is to eliminate the conflict between the SEC rules and unclaimed property rules.

California Dormancy Periods

HB 2117
Introduced 2/18/10

This bill seeks to extend the 3-year period dormancy period for most property types to 5 years.  This increase in dormancy applies to all banking, security, insurance, fiduciary and retirement property as well as to wages and safe deposit boxes.

This bill also requires the Controller to add interest to the amount of any claim paid to the owner for the period the property was on deposit in the Unclaimed Property.  Finally, this bill also removes the requirement that the Controller transfer all money in the Unclaimed Property Fund in excess of $50,000 to the General Fund and to record and make available specified names and addresses.

Missouri Dormancy Periods

HB 1716, SB 737
Introduced 1/20/10 and 1/11/10

Seeks to reduce that dormancy period for payroll checks from five years to one year effective January 1, 2011.

State Unclaimed Property Updates

Florida Unclaimed Property

ADC 69I-20.041
Introduced 1/22/10

This regulation seeks to create an unclaimed property reporting manual for use by holders of unclaimed property. The manual contains information that holders will need to properly report and remit unclaimed property to the Department.

FL ADC 69I-20.090
Proposed 1/22/10

The claimant affidavit codified in Rule 69I-20.0026, F.A.C., is being amended, in part, to provide a space for the claimant to put the description of the unclaimed property and to put the name of the holder that reported the property. The amended affidavit also requires the claimant to provide an explanation regarding why the claimant believes that he or she is the reported owner of the unclaimed property account.

Hawaii Unclaimed Property

HB 2532
Introduced 1/27/10, Passed the senate 2/8/10

Requires holders of unclaimed property to remit all property with their November 1 report and deletes reference to a specific number of days in which claims must be acted upon.  Deletes references to a time frame that the state administrator has to respond to a claim. Also makes a technical correction by referencing the Unclaimed Property Trust Fund.  Law to be effective 7/1/10.

Idaho Unclaimed Property

HB 385
Introduced 1/18/10

Amends existing law relating to unclaimed property. Requires holders reporting ten or more properties to report in an electronic format required by the administrator;  Allows the administrator a period of five years prior to turning property over to the Public School Endowment Fund; Allows the administrator discretion to sell abandoned property within three years; and to allow the administrator to waive penalties and interest in certain cases.

HB 485
Introduced 2/5/10

Amends existing law to transfer the administration of the state’s unclaimed property law to the State Treasurer from the State Tax Commission.

Kansas Unclaimed Property

SB 479
Introduced 1/28/10, Passed Senate to house 2/11/10

The secretary of the Department of Revenue is permitted to disclose information to the state treasurer for purposes of locating unclaimed property owners.

Mississippi Unclaimed Property

HB 73
Prefiled 12/28/09, Introduced 1/5/10, Died in Committee 2/2/10

This bill proposes to repeal the present Unclaimed Property law and to implement categorical changes.  Dormancy periods for many property types have been reduced and fines for late or nonexistent reporting have been increased dramatically.

1) It is proposed that the dormancy periods for the following property types be reduced to 3 years from 5 years:  Retail Credits, Gift certificates, Life Insurance, and IRA’s.  The bill further proposes the dormancy periods for following property types be reduced from 5 years to 1 year: Property distributable in the course of dissolution, Wages or other compensation and Deposits or refunds owed by a utility. All other property shall be presumed abandoned after 5 years.

2) With respect to Dormancy charges, a holder may now deduct from property presumed abandoned a dormancy charge if there is a valid and enforceable written contract between the holder and the owner pursuant to which the holder may impose the charge and the holder regularly imposes the charge, which is not regularly reversed or otherwise canceled. The amount of the deduction is limited to an amount that is not unconscionable.

3) The bill will also require yearly reporting with the report due before November 1 of each year (life insurance companies to report May 1). Due diligence will be required not more than 120 days or less than 60 days before the report is filed.

4) Under this bill, an agreement entered into by an owner to locate or recover or assist in the recovery of property that is presumed abandoned is void and unenforceable if it was entered into on the date the property was presumed abandoned and extending to 24 months after the property is paid or delivered to the administrator.

5) A holder who fails to report within the time prescribed shall pay the administrator interest of 12% on the property or value thereof from the date the property should have been reported.  Other penalties include:

(a) Civil penalty of $200 a day for each day the report is not performed up to a maximum of $5,000 (raised from a maximum of $100 in 1982).

(b) Penalty for willfully failing to report is $1000 a day for each day the report is not performed up to a maximum of $25,000 plus 25% of the value of any property that should have been but was not reported.

(c) Penalty for a holder who renders a fraudulent report is $1000 a day with a maximum of 25,000 plus 25% of the value of the property that should have been but was not reported.

(d) Upon good cause the administrator may waive interest under subsection.

Missouri Unclaimed Property

HB 1993
Introduced 2/4/10

This bill seeks to add a Business to Business exemption:  Any intangible property due or owed by a business association to or for the benefit of another business association resulting from a transaction occurring in the normal and ordinary course of business shall be exempt from unclaimed property laws. The bill also seeks to add a provision concerning enforcement:  The state treasurer shall not enforce this chapter for a reportable period more than three years after the holder filed a report with the state treasurer; or gave express notice to the state treasurer of a dispute under this chapter.  If a fraudulent report is filed with the intent to evade escheatment of property, the state treasurer may enforce this chapter within six years after the report was filed.  If no report is filed, the state treasurer may enforce this chapter at any time.

New Jersey Unclaimed Property

42 NJR 58(a)
Introduced 1/4/10

Dormancy Fees on Money Orders and Unclaimed Property – Amends rules to require an issuer of a money order to provide to the purchaser by written notice, the fees and terms of the order, as well as a telephone number that the consumer may call for information concerning any dormancy fee.

A 2133
Introduced 2/11/10

Exempts security deposits by residential tenants from provisions of Uniform Unclaimed Property Act.

Ohio Unclaimed Property

HB 126
Introduced 4/8/09, Amended 12/3/09, To Senate 12/17/09

1) Amends sections of the Unclaimed Property laws dealing with locater agreements post escheat.  The amendments would require that any such agreement provide, among other things, that the director of budget and management will withhold from the unclaimed payment any legal amount specified in the agreement to compensate a registered finder for services performed pursuant to the agreement, will pay the amount directly to the registrant, less any fee established pursuant to division (D) of section 169.14 of the Revised Code, and will pay any remaining unclaimed funds directly to the owner.  Sec. 169.14 is added and allows the director of commerce to establish a reasonable fee for the processing and delivery of any payment made to a registrant.

2) Under existing law, interest is not payable to claimants of unclaimed funds held by the state.  The bill instead provides that if a claim is allowed, the Director of Commerce must pay over to the claimant the property presumed abandoned in the amount the Director actually received, or the net proceeds, if securities or other intangible property delivered to the Director have been sold, together with any interest required to be paid by the bill.  With respect to any claim paid on or after the bill’s effective date, the Director must pay simple interest on the claim at a rate determined by the Director, who must adopt administrative rules governing the payment of interest on property delivered to the Director.  Any returns on investment or interest earned beyond what the Director must pay as interest to the owner must be retained by the Director to fund administration of the Property Presumed Abandoned Law.

Oklahoma Unclaimed Property

HB 3315
Introduced 2/1/10

The Treasurer may require a holder reporting fifteen or more items of property pursuant to this section to file the report electronically.  The Treasurer shall promulgate rules necessary to carry out provisions for electronic filing.  “Good faith” means that the reporting and delivery of property was made in compliance with Sections 661 and 663 of this title and any applicable administrative rules.

Tennessee Unclaimed Property

HB 3326, SB 3808
Introduced 2/1/10

In the year following the year in which unclaimed property has been paid or delivered to the treasurer, the treasurer shall mail a notice to each person having an address reported who appears to be entitled to property presumed abandoned. The treasurer may set a minimum dollar value for property that requires the mailing of a notice.

State Abandoned Property Updates

Indiana Abandoned Property

HB 1083
Introduced 1/5/10 and 1/11/10, Passed House to Senate on 1/26/10, Engrossed 2/18/10

The bill seeks to reduce from five years to three years the period after which the following property is considered abandoned for purposes of the state’s unclaimed property act: (1) A demand, savings, or matured time deposit. (2) Property payable as a result of a demutualization, rehabilitation, or related reorganization of a mutual insurance company. (3) All other property not otherwise specified under the act.   The bill also proposes a technical amendment to one provision of the unclaimed property act to reflect another provision of the unclaimed property act that specifies that the act does not apply to: (1) a business to business credit memorandum; or (2) gift certificates.

Maryland Abandoned Property

HB 151, SB 141
Introduced 1/20/10

Repeals requirements for a certain notice relating to abandoned property to be published in certain newspapers. Requires the Comptroller to maintain, or cause to be maintained, an abandoned property database containing the names and last known addresses, if any, of persons listed in certain reports.  Requires the Comptroller to maintain, or cause to be maintained, an Internet website relating to the abandoned property database.   Requires the Comptroller to publish certain notices of the Internet website.

HB 963
Introduced 2/12/10

This bill adds abandoned property delivered to the State Comptroller under the laws relating to the disposition of abandoned property to provisions of law requiring the State Comptroller to withhold the amount of specified child support arrearages from payments due to obligors and to forward the amount withheld to the Child Support Enforcement Administration.

SB 1004
Introduced 2/22/10

Repeals the following:  1) certain requirements for notice relating to abandoned property to be published in certain newspapers.  2) The Comptroller to maintain, or cause to be maintained, an abandoned property database containing the names and last known addresses, if any, of persons listed in certain reports.  3) The Comptroller to maintain, or cause to be maintained, a certain internet website relating to the abandoned property database.  3) The Comptroller to publish certain notices of a certain Internet website.

Escheat Law Updates

Utah Escheat Law

SB 118
Introduced 2/1/10

Amends the Probate Code by clarifying the division of a decedent’s estate and adds one more level of heirs before escheat.

Unclaimed Savings Bonds Regulations

United States Unclaimed Savings Bonds

HB 4198
Introduced 12/3/09

An Act to establish a program to reunite bondholders with matured unredeemed U.S. savings bonds.

 

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Abandoned Property, Abandoned Property Law, Dormancy Periods, Escheatment, Legislative Updates, Unclaimed Property, Unclaimed Property Law


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