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H0681...............................................by REVENUE AND TAXATION UNCLAIMED PROPERTY - Amends existing law on unclaimed property to change the holding period from seven years to five years for checks, drafts and similar instruments issued or certified by banking and financial organizations, property held by agents and fiduciaries, and contents of safe deposit boxes or other safekeeping repository; and to delete the special reporting period for insurance companies. 02/26 House intro - 1st rdg - to printing 02/27 Rpt prt - to 2nd rdg 02/28 2nd rdg - to 3rd rdg 03/04 3rd rdg - PASSED - 65-0-5 AYES -- Aikele, Barraclough, Barrett, Bedke, Bell, Bieter, Black, Block, Boe, Bolz, Bradford, Campbell, Clark, Collins, Crow, Cuddy, Deal, Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20), Gagner, Gould, Hadley, Hammond, Harwood, Henbest, Higgins, Hornbeck, Jaquet, Jones, Kellogg(Duncan), Kendell, Kunz, Langford, Loertscher, Mader, Martinez, McKague, Meyer, Montgomery, Mortensen, Moyle, Pearce, Pischner, Pomeroy, Raybould, Robison, Sali, Schaefer, Sellman, Shepherd, Smith(33), Smith(23), Smylie, Stevenson, Stone, Tilman, Trail, Wheeler, Wood, Young, Mr. Speaker NAYS -- None Absent and excused -- Bruneel, Callister, Lake, Ridinger, Roberts Floor Sponsor - Wood Title apvd - to Senate 03/05 Senate intro - 1st rdg - to Loc Gov 03/07 Rpt out - rec d/p - to 2nd rdg 03/08 2nd rdg - to 3rd rdg 03/14 3rd rdg - PASSED - 35-0-0 AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson, Burtenshaw, Cameron, Darrington, Davis, Deide, Dunklin, Frasure, Geddes, Goedde, Hawkins, Hill, Ingram, Ipsen, Keough, King-Barrutia, Little, Lodge, Marley, Noh, Richardson, Risch, Sandy, Schroeder, Sims, Sorensen, Stegner, Stennett, Thorne, Wheeler, Williams NAYS -- None Absent and excused -- None Floor Sponsor - Frasure Title apvd - to House 03/15 To enrol - rpt enrol - Sp signed Pres signed 03/15 To Governor 03/20 Governor signed Session Law Chapter 152 Effective: 01/01/03
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-sixth Legislature Second Regular Session - 2002IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 681 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO UNCLAIMED PROPERTY LAW; AMENDING SECTION 14-505, IDAHO CODE, TO 3 CHANGE THE HOLDING PERIOD FROM SEVEN YEARS TO FIVE YEARS FOR CHECKS, 4 DRAFTS AND SIMILAR INSTRUMENTS ISSUED OR CERTIFIED BY BANKING AND FINAN- 5 CIAL ORGANIZATIONS; AMENDING SECTION 14-506, IDAHO CODE, TO CHANGE THE 6 HOLDING PERIOD FROM SEVEN YEARS TO FIVE YEARS FOR BANK DEPOSITS AND FUNDS 7 IN FINANCIAL ORGANIZATIONS AND TO MAKE TECHNICAL CORRECTIONS; AMENDING 8 SECTION 14-512, IDAHO CODE, TO CHANGE THE HOLDING PERIOD FROM SEVEN YEARS 9 TO FIVE YEARS FOR PROPERTY HELD BY AGENTS AND FIDUCIARIES; AMENDING SEC- 10 TION 14-516, IDAHO CODE, TO CHANGE THE HOLDING PERIOD FROM SEVEN YEARS TO 11 FIVE YEARS FOR CONTENTS OF A SAFE DEPOSIT BOX OR OTHER SAFEKEEPING REPOSI- 12 TORY; AMENDING SECTION 14-517, IDAHO CODE, TO DELETE THE SPECIAL REPORTING 13 PERIOD FOR INSURANCE COMPANIES AND TO MAKE A TECHNICAL CORRECTION; AND 14 PROVIDING AN EFFECTIVE DATE. 15 Be It Enacted by the Legislature of the State of Idaho: 16 SECTION 1. That Section 14-505, Idaho Code, be, and the same is hereby 17 amended to read as follows: 18 14-505. CHECKS, DRAFTS AND SIMILAR INSTRUMENTS ISSUED OR CERTIFIED BY 19 BANKING AND FINANCIAL ORGANIZATIONS. (1) Any sum payable on a check, draft, or 20 similar instrument, except those subject to section 14-504, Idaho Code, on 21 which a banking or financial organization is directly liable, including a 22 cashier's check and a certified check, which has been outstanding for more 23 thansevenfive (75) years after it was payable or after its issuance if pay- 24 able on demand, is presumed abandoned, unless the owner, withinsevenfive 25 (75) years, has communicated in writing with the banking or financial organi- 26 zation concerning it or otherwise indicated an interest as evidenced by a mem- 27 orandum or other record on file prepared by an employee thereof. 28 (2) A holder may not deduct from the amount of any instrument subject to 29 this section any charge imposed by reason of the failure to present the 30 instrument for payment unless there is a valid and enforceable written con- 31 tract between the holder and the owner of the instrument pursuant to which the 32 holder may impose a charge, and the holder regularly imposes such charges and 33 does not regularly reverse or otherwise cancel them. 34 SECTION 2. That Section 14-506, Idaho Code, be, and the same is hereby 35 amended to read as follows: 36 14-506. BANK DEPOSITS AND FUNDS IN FINANCIAL ORGANIZATIONS. (1) Any 37 demand, savings, or matured time deposit with a banking or financial organiza- 38 tion, including a deposit that is automatically renewable, and any funds paid 39 toward the purchase of a share, a mutual investment certificate, or any other 40 interest in a banking or financial organization is presumed abandoned unless 41 the owner, withinsevenfive (75) years, has: 2 1 (a) In the case of a deposit, increased or decreased its amount or pre- 2 sented the passbook or other similar evidence of the deposit for the cred- 3 iting of interest; 4 (b) Communicated in writing with the banking or financial organization 5 concerning the property; 6 (c) Otherwise established that the owner is currently aware of his inter- 7 est in the property as evidenced by a memorandum or other record on file 8 prepared by an employee of the banking or financial organization describ- 9 ing the activity of the owner which establishes that the owner is cur- 10 rently aware of his interest in the property stating the date of such 11 activity and the address of the owner as of that date; 12 (d) Owned other property to which paragraph (a), (b),or (c) of this sub- 13 section applies and if the banking or financial organization communicates 14 in writing with the owner with regard to the property that would otherwise 15 be presumed abandoned under this subsection at the address to which commu- 16 nications regarding the other property regularly are sent; or 17 (e) Had another relationship with the banking or financial organization 18 concerning which the owner has: 19 1. Communicated in writing with the banking or financial organiza- 20 tion; or 21 2. Otherwise established that the owner is currently aware of his 22 interest as evidenced by a memorandum or other record on file pre- 23 pared by an employee of the banking or financial organization 24 describing the activity of the owner which establishes that the owner 25 is currently aware of his interest, stating the date of such activity 26 and the address of the owner as of that date. 27 (2) For purposes of subsection (1) of this section, property includes 28 interest and dividends. 29 (3) A holder may not impose with respect to property described in subsec- 30 tion (1) of this section any charge due to dormancy or inactivity or cease 31 payment of interest unless: 32 (a) There is an enforceable written contract between the holder and the 33 owner of the property pursuant to which the holder may impose a charge or 34 cease payment of interest; 35 (b) For property in excess of two dollars ($2.00), the holder, no more 36 than three (3) months before the initial imposition of those charges or 37 cessation of interest, has given written notice to the owner of the amount 38 of those charges at the last known address of the owner stating that those 39 charges will be imposed or that interest will cease, but the notice pro- 40 vided in this section need not be given with respect to charges imposed or 41 interest ceased before the effective date of this chapter; and 42 (c) The holder regularly imposes such charges or ceases payment of inter- 43 est and does not regularly reverse or otherwise cancel them or retroac- 44 tively credit interest with respect to the property. 45 (4) Any property described in subsection (1) of this section that is 46 automatically renewable is matured for purposes of subsection (1) of this sec- 47 tion upon the expiration of its initial time period, but in the case of any 48 renewal to which the owner consents at or about the time of renewal by commu- 49 nicating in writing with the banking or financial organization, the property 50 is matured upon the expiration of the last time period for which consent was 51 given. If, at the time provided for delivery in section 14-519, Idaho Code, a 52 penalty or forfeiture in the payment of interest would result from the deliv- 53 ery of the property, the time for delivery is extended until the time when no 54 penalty or forfeiture would result. 3 1 SECTION 3. That Section 14-512, Idaho Code, be, and the same is hereby 2 amended to read as follows: 3 14-512. PROPERTY HELD BY AGENTS AND FIDUCIARIES. (1) Intangible property 4 and any income or increment derived therefrom held in a fiduciary capacity for 5 the benefit of another person is presumed abandoned unless the owner, within 6sevenfive (75) years after it has become payable or distributable, has 7 increased or decreased the principal, accepted payment of principal or income, 8 or communicated concerning the property. 9 (2) Amounts due and payable from property in an individual retirement 10 account, defined benefit plan, or other account or plan that is qualified for 11 tax deferral under the income tax laws of the United States, is presumed aban- 12 doned three (3) years after the earlier of the date of the required distribu- 13 tion as stated in the documents governing the account or plan, or the date, if 14 determinable by the holder, specified in the income tax law of the United 15 States by which distribution of the property must begin in order to avoid a 16 tax penalty, but excluding property in any such account or plan if the docu- 17 ments governing the account or plan provide a method for the treatment of the 18 account balance of an account holder or plan participant or beneficiary who 19 cannot be located. 20 (3) For the purposes of this section, a person who holds property as an 21 agent for a business association is deemed to hold the property in a fiduciary 22 capacity for that business association alone, unless the agreement between him 23 and the business association provides otherwise. 24 (4) For the purposes of this chapter, a person who is deemed to hold 25 property in a fiduciary capacity for a business association alone is the 26 holder of the property only insofar as the interest of the business associa- 27 tion in the property is concerned, and the business association is the holder 28 of the property insofar as the interest of any other person in the property is 29 concerned. 30 SECTION 4. That Section 14-516, Idaho Code, be, and the same is hereby 31 amended to read as follows: 32 14-516. CONTENTS OF SAFE DEPOSIT BOX OR OTHER SAFEKEEPING REPOSITORY. All 33 tangible and intangible property held in a safe deposit box or any other safe- 34 keeping repository in this state in the ordinary course of the holder's busi- 35 ness and proceeds resulting from the sale of the property permitted by other 36 law, which remain unclaimed by the owner for more thansevenfive (75) years 37 after the lease or rental period on the box or other repository has expired, 38 are presumed abandoned. 39 SECTION 5. That Section 14-517, Idaho Code, be, and the same is hereby 40 amended to read as follows: 41 14-517. REPORT OF ABANDONED PROPERTY. (1) A person holding property tan- 42 gible or intangible, presumed abandoned and subject to custody as unclaimed 43 property under this chapter shall report to the administrator concerning the 44 property as provided in this section. 45 (2) The report must be verified and must include: 46 (a) Except with respect to traveler's checks and money orders, the name, 47 if known, and last known address, if any, of each person appearing from 48 the records of the holder to be the owner of property presumed abandoned 49 under this chapter; 50 (b) In the case of unclaimed funds of fifty dollars ($50.00) or more held 4 1 or owing under any life or endowment insurance policy or annuity contract, 2 the full name and last known address of the insured or annuitant and of 3 the beneficiary according to the records of the insurance company holding 4 or owing the funds; 5 (c) In the case of the contents of a safe deposit box or other safekeep- 6 ing repository or of other tangible property, a description of the prop- 7 erty and the place where it is held and may be inspected by the adminis- 8 trator and any amounts owing to the holder; 9 (d) The nature and identifying number, if any, or description of the 10 property and the amount appearing from the records to be due; 11 (e) The date the property became payable, demandable, or returnable, and 12 the date of the last transaction with the apparent owner with respect to 13 the property; and 14 (f) Other information the administrator prescribes by rule as necessary 15 for the administration of the provisions of this chapter. 16 (3) If the person holding property presumed abandoned and subject to cus- 17 tody as unclaimed property is a successor to other persons who previously held 18 the property for the apparent owner or the holder has changed his name while 19 holding the property, he shall file with his report all known names and 20 addresses of each previous holder of the property. 21 (4) The report must be filed before November 1 of each year as of June 30 22 next preceding, but the report of any insurance company must be filed before23May 1 of each year as of December 31 next preceding. On written request by any 24 person required to file a report, the administrator may postpone the reporting 25 date. 26 (5) All holders of property presumed abandoned under this section that 27 know the whereabouts of the owner of such property shall, before filing the 28 annual report, communicate with the owner and take necessary steps to prevent 29 abandonment from being presumed. Not more than one hundred twenty (120) days 30 before filing the report required by this section, the holder in possession of 31 property presumed abandoned and subject to custody as unclaimed property under 32 this chapter shall send written notice to the apparent owner at his last known 33 address informing him that the holder is in possession of property subject to 34 this chapter if the holder has in its records an address for the apparent 35 owner which the holder's records do not disclose to be inaccurate. 36 (6) The written notice required under this section shall include the name 37 and address of the apparent owner, the nature and amount of the property pre- 38 sumed abandoned in the holder's possession, the name and address of the holder 39 of the property presumed abandoned, a request that the apparent owner identify 40 whether the property presumed abandoned is or is not unclaimed property under 41 this chapter, and the reasons therefor, and any other criteria the administra- 42 tor deems appropriate. 43 (7) If the apparent owner completes and returns the written notice 44 described in subsection (6) of this section to the holder, and the apparent 45 owner indicates a claim to the property presumed abandoned or indicates that 46 the property identified in the written notice is not abandoned property, the 47 holder need not pay or deliver the property to the administrator, and the 48 property shall not be considered abandoned. 49 (8) In the event a holder receives a written notice as described in sub- 50 section (7) of this section demonstrating that certain property is not aban- 51 doned, a new presumption of abandonment may arise for such property due to the 52 passage of time. The date the holder receives the written notice shall be 53 deemed the date such property became payable or distributable for the purposes 54 of calculating whether a presumption of abandonment has arisen. 55 (9) A report filed pursuant to this section shall be presumed accurate if 5 1 the holder has maintained adequate records sufficient to establish by a pre- 2 ponderance of evidence that each item on the report is accurate and correct. 3 SECTION 6. This act shall be in full force and effect on and after Janu- 4 ary 1, 2003.
STATEMENT OF PURPOSE RS 12136 This bill changes tIi e time period before which certain types of unclaimed property will be deemed abandoned and become subject to the custody of the state. It also modifies the reporting period for insurance companies. These changes will conform Idaho s laws to those of most other western states. The intent is to simplify reporting by businesses doing business in two or more states. FISCAL IMPACT The bill will result in a one-time acceleration of funds to the unclaimed property account of an estimated $500,000 to $1, 000, 000. Contact Name: Representative Wood Phone: 332-1000 STATEMENT OF PURPOSE/FISCAL NOTE H 681