H0439aaS............................................by REVENUE AND TAXATION UNCLAIMED PROPERTY - Amends existing law on unclaimed property to change the holding period from seven years to five years for traveler's checks, money orders, 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. 01/16 House intro - 1st rdg - to printing 01/17 Rpt prt - to Rev/Tax 01/22 Rpt out - rec d/p - to 2nd rdg 01/23 2nd rdg - to 3rd rdg 01/28 Rls susp - PASSED - 70-0-0 AYES -- Aikele, Barraclough, Barrett, Bedke, Bell, Bieter, Black, Block, Boe, Bolz, Bradford, Bruneel, Callister, 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, Kendell, Kunz, Lake, Langford, Loertscher, Mader, Martinez, McKague, Meyer, Montgomery, Mortensen, Moyle, Pearce, Pischner, Pomeroy, Raybould, Ridinger, Roberts, Robison, Sali, Schaefer, Sellman, Shepherd, Smith(33), Smith(23), Smylie, Stevenson, Stone, Tilman, Trail, Wheeler, Wood, Young, Mr. Speaker NAYS -- None Absent and excused -- None Floor Sponsor - Wood Title apvd - to Senate 01/29 Senate intro - 1st rdg - to Loc Gov 02/07 Rpt out - to 14th Ord 02/08 Rpt out amen - to 1st rdg as amen 02/11 1st rdg - to 2nd rdg as amen 02/12 2nd rdg - to 3rd rdg as amen 02/13 3rd rdg as amen - PASSED - 28-6-1 AYES -- Andreason, Branch(Bartlett), Brandt, Bunderson, Burtenshaw, Deide, Dunklin, Frasure, Goedde, Hill, Ingram, Ipsen, Keough, King-Barrutia, Little, Lodge, Marley, Noh, Richardson, Risch, Sandy, Sims, Sorensen, Stegner, Stennett, Thorne, Wheeler, Williams NAYS -- Boatright, Darrington, Davis, Geddes, Hawkins, Schroeder Absent and excused -- Cameron Floor Sponsor - Bunderson Title apvd - to House 02/14 House did NOT concur in Senate amens - 60-5-5 To Chief Clerk
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-sixth Legislature Second Regular Session - 2002 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 439 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO UNCLAIMED PROPERTY LAW; AMENDING SECTION 14-504, IDAHO CODE, TO 3 CHANGE THE HOLDING PERIOD FROM SEVEN YEARS TO FIVE YEARS FOR TRAVELER'S 4 CHECKS AND MONEY ORDERS AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SEC- 5 TION 14-505, IDAHO CODE, TO CHANGE THE HOLDING PERIOD FROM SEVEN YEARS TO 6 FIVE YEARS FOR CHECKS, DRAFTS AND SIMILAR INSTRUMENTS ISSUED OR CERTIFIED 7 BY BANKING AND FINANCIAL ORGANIZATIONS; AMENDING SECTION 14-506, IDAHO 8 CODE, TO CHANGE THE HOLDING PERIOD FROM SEVEN YEARS TO FIVE YEARS FOR BANK 9 DEPOSITS AND FUNDS IN FINANCIAL ORGANIZATIONS AND TO MAKE TECHNICAL COR- 10 RECTIONS; AMENDING SECTION 14-512, IDAHO CODE, TO CHANGE THE HOLDING 11 PERIOD FROM SEVEN YEARS TO FIVE YEARS FOR PROPERTY HELD BY AGENTS AND 12 FIDUCIARIES; AMENDING SECTION 14-516, IDAHO CODE, TO CHANGE THE HOLDING 13 PERIOD FROM SEVEN YEARS TO FIVE YEARS FOR CONTENTS OF A SAFE DEPOSIT BOX 14 OR OTHER SAFEKEEPING REPOSITORY; AMENDING SECTION 14-517, IDAHO CODE, TO 15 DELETE THE SPECIAL REPORTING PERIOD FOR INSURANCE COMPANIES AND TO MAKE A 16 TECHNICAL CORRECTION; AND PROVIDING AN EFFECTIVE DATE. 17 Be It Enacted by the Legislature of the State of Idaho: 18 SECTION 1. That Section 14-504, Idaho Code, be, and the same is hereby 19 amended to read as follows: 20 14-504. TRAVELER'S CHECKS AND MONEY ORDERS. (1) Subject to subsection (4) 21 of this section, any sum payable on a traveler's check that has been outstand- 22 ing for more than fifteen (15) years after its issuance is presumed abandoned 23 unless the owner, within fifteen (15) years, has communicated in writing with 24 the issuer concerning it or otherwise indicated an interest as evidenced by a 25 memorandum or other record on file prepared by an employee of the issuer. 26 (2) Subject to subsection (4) of this section, any sum payable on a money 27 order or similar written instrument, other than a third-party bank check, that 28 has been outstanding for more than sevenfive ( 75) years after its issuance is 29 presumed abandoned unless the owner, within sevenfive ( 75) years, has commu- 30 nicated in writing with the issuer concerning it or otherwise indicated an 31 interest as evidenced by a memorandum or other record on file prepared by an 32 employee of the issuer. 33 (3) A holder may not deduct from the amount of a traveler's check or 34 money order any charge imposed by reason of the failure to present the instru- 35 ment for payment unless there is a valid and enforceable written contract 36 between the issuer and the owner of the instrument pursuant to which the 37 issuer may impose a charge and the issuer regularly imposes such charges and 38 does not regularly reverse or otherwise cancel them. 39 (4) No sum payable on a traveler's check, money order, or similar written 40 instrument, other than a third-party bank check, described in subsections (1) 41 and (2) of this section may be subjected to the custody of this state as 42 unclaimed property unless: 43 (a) The records of the issuer show that the traveler's check, money 2 1 order, or similar written instrument was purchased in this state; 2 (b) The issuer has its principal place of business in this state and the 3 records of the issuer do not show the state in which the traveler's check, 4 money order, or similar written instrument was purchased; or 5 (c) The issuer has its principal place of business in this state, the 6 records of the issuer show the state in which the traveler's check, money 7 order, or similar written instrument was purchased and the laws of the 8 state of purchase do not provide for the escheat or custodial taking of 9 the property or its escheat or unclaimed property law is not applicable to 10 the property. 11 SECTION 2. That Section 14-505, Idaho Code, be, and the same is hereby 12 amended to read as follows: 13 14-505. CHECKS, DRAFTS AND SIMILAR INSTRUMENTS ISSUED OR CERTIFIED BY 14 BANKING AND FINANCIAL ORGANIZATIONS. (1) Any sum payable on a check, draft, or 15 similar instrument, except those subject to section 14-504, Idaho Code, on 16 which a banking or financial organization is directly liable, including a 17 cashier's check and a certified check, which has been outstanding for more 18 than sevenfive ( 75) years after it was payable or after its issuance if pay- 19 able on demand, is presumed abandoned, unless the owner, within sevenfive 20 ( 75) years, has communicated in writing with the banking or financial organi- 21 zation concerning it or otherwise indicated an interest as evidenced by a mem- 22 orandum or other record on file prepared by an employee thereof. 23 (2) A holder may not deduct from the amount of any instrument subject to 24 this section any charge imposed by reason of the failure to present the 25 instrument for payment unless there is a valid and enforceable written con- 26 tract between the holder and the owner of the instrument pursuant to which the 27 holder may impose a charge, and the holder regularly imposes such charges and 28 does not regularly reverse or otherwise cancel them. 29 SECTION 3. That Section 14-506, Idaho Code, be, and the same is hereby 30 amended to read as follows: 31 14-506. BANK DEPOSITS AND FUNDS IN FINANCIAL ORGANIZATIONS. (1) Any 32 demand, savings, or matured time deposit with a banking or financial organiza- 33 tion, including a deposit that is automatically renewable, and any funds paid 34 toward the purchase of a share, a mutual investment certificate, or any other 35 interest in a banking or financial organization is presumed abandoned unless 36 the owner, within sevenfive ( 75) years, has: 37 (a) In the case of a deposit, increased or decreased its amount or pre- 38 sented the passbook or other similar evidence of the deposit for the cred- 39 iting of interest; 40 (b) Communicated in writing with the banking or financial organization 41 concerning the property; 42 (c) Otherwise established that the owner is currently aware of his inter- 43 est in the property as evidenced by a memorandum or other record on file 44 prepared by an employee of the banking or financial organization describ- 45 ing the activity of the owner which establishes that the owner is cur- 46 rently aware of his interest in the property stating the date of such 47 activity and the address of the owner as of that date; 48 (d) Owned other property to which paragraph (a), (b), or (c) of this sub- 49 section applies and if the banking or financial organization communicates 50 in writing with the owner with regard to the property that would otherwise 51 be presumed abandoned under this subsection at the address to which commu- 3 1 nications regarding the other property regularly are sent; or 2 (e) Had another relationship with the banking or financial organization 3 concerning which the owner has: 4 1. Communicated in writing with the banking or financial organiza- 5 tion; or 6 2. Otherwise established that the owner is currently aware of his 7 interest as evidenced by a memorandum or other record on file pre- 8 pared by an employee of the banking or financial organization 9 describing the activity of the owner which establishes that the owner 10 is currently aware of his interest, stating the date of such activity 11 and the address of the owner as of that date. 12 (2) For purposes of subsection (1) of this section, property includes 13 interest and dividends. 14 (3) A holder may not impose with respect to property described in subsec- 15 tion (1) of this section any charge due to dormancy or inactivity or cease 16 payment of interest unless: 17 (a) There is an enforceable written contract between the holder and the 18 owner of the property pursuant to which the holder may impose a charge or 19 cease payment of interest; 20 (b) For property in excess of two dollars ($2.00), the holder, no more 21 than three (3) months before the initial imposition of those charges or 22 cessation of interest, has given written notice to the owner of the amount 23 of those charges at the last known address of the owner stating that those 24 charges will be imposed or that interest will cease, but the notice pro- 25 vided in this section need not be given with respect to charges imposed or 26 interest ceased before the effective date of this chapter; and 27 (c) The holder regularly imposes such charges or ceases payment of inter- 28 est and does not regularly reverse or otherwise cancel them or retroac- 29 tively credit interest with respect to the property. 30 (4) Any property described in subsection (1) of this section that is 31 automatically renewable is matured for purposes of subsection (1) of this sec- 32 tion upon the expiration of its initial time period, but in the case of any 33 renewal to which the owner consents at or about the time of renewal by commu- 34 nicating in writing with the banking or financial organization, the property 35 is matured upon the expiration of the last time period for which consent was 36 given. If, at the time provided for delivery in section 14-519, Idaho Code, a 37 penalty or forfeiture in the payment of interest would result from the deliv- 38 ery of the property, the time for delivery is extended until the time when no 39 penalty or forfeiture would result. 40 SECTION 4. That Section 14-512, Idaho Code, be, and the same is hereby 41 amended to read as follows: 42 14-512. PROPERTY HELD BY AGENTS AND FIDUCIARIES. (1) Intangible property 43 and any income or increment derived therefrom held in a fiduciary capacity for 44 the benefit of another person is presumed abandoned unless the owner, within 45 sevenfive ( 75) years after it has become payable or distributable, has 46 increased or decreased the principal, accepted payment of principal or income, 47 or communicated concerning the property. 48 (2) Amounts due and payable from property in an individual retirement 49 account, defined benefit plan, or other account or plan that is qualified for 50 tax deferral under the income tax laws of the United States, is presumed aban- 51 doned three (3) years after the earlier of the date of the required distribu- 52 tion as stated in the documents governing the account or plan, or the date, if 53 determinable by the holder, specified in the income tax law of the United 4 1 States by which distribution of the property must begin in order to avoid a 2 tax penalty, but excluding property in any such account or plan if the docu- 3 ments governing the account or plan provide a method for the treatment of the 4 account balance of an account holder or plan participant or beneficiary who 5 cannot be located. 6 (3) For the purposes of this section, a person who holds property as an 7 agent for a business association is deemed to hold the property in a fiduciary 8 capacity for that business association alone, unless the agreement between him 9 and the business association provides otherwise. 10 (4) For the purposes of this chapter, a person who is deemed to hold 11 property in a fiduciary capacity for a business association alone is the 12 holder of the property only insofar as the interest of the business associa- 13 tion in the property is concerned, and the business association is the holder 14 of the property insofar as the interest of any other person in the property is 15 concerned. 16 SECTION 5. That Section 14-516, Idaho Code, be, and the same is hereby 17 amended to read as follows: 18 14-516. CONTENTS OF SAFE DEPOSIT BOX OR OTHER SAFEKEEPING REPOSITORY. All 19 tangible and intangible property held in a safe deposit box or any other safe- 20 keeping repository in this state in the ordinary course of the holder's busi- 21 ness and proceeds resulting from the sale of the property permitted by other 22 law, which remain unclaimed by the owner for more than sevenfive ( 75) years 23 after the lease or rental period on the box or other repository has expired, 24 are presumed abandoned. 25 SECTION 6. That Section 14-517, Idaho Code, be, and the same is hereby 26 amended to read as follows: 27 14-517. REPORT OF ABANDONED PROPERTY. (1) A person holding property tan- 28 gible or intangible, presumed abandoned and subject to custody as unclaimed 29 property under this chapter shall report to the administrator concerning the 30 property as provided in this section. 31 (2) The report must be verified and must include: 32 (a) Except with respect to traveler's checks and money orders, the name, 33 if known, and last known address, if any, of each person appearing from 34 the records of the holder to be the owner of property presumed abandoned 35 under this chapter; 36 (b) In the case of unclaimed funds of fifty dollars ($50.00) or more held 37 or owing under any life or endowment insurance policy or annuity contract, 38 the full name and last known address of the insured or annuitant and of 39 the beneficiary according to the records of the insurance company holding 40 or owing the funds; 41 (c) In the case of the contents of a safe deposit box or other safekeep- 42 ing repository or of other tangible property, a description of the prop- 43 erty and the place where it is held and may be inspected by the adminis- 44 trator and any amounts owing to the holder; 45 (d) The nature and identifying number, if any, or description of the 46 property and the amount appearing from the records to be due; 47 (e) The date the property became payable, demandable, or returnable, and 48 the date of the last transaction with the apparent owner with respect to 49 the property; and 50 (f) Other information the administrator prescribes by rule as necessary 51 for the administration of the provisions of this chapter. 5 1 (3) If the person holding property presumed abandoned and subject to cus- 2 tody as unclaimed property is a successor to other persons who previously held 3 the property for the apparent owner or the holder has changed his name while 4 holding the property, he shall file with his report all known names and 5 addresses of each previous holder of the property. 6 (4) The report must be filed before November 1 of each year as of June 30 7 next preceding , but the report of any insurance company must be filed before8 May 1 of each year as of December 31 next preceding. On written request by any 9 person required to file a report, the administrator may postpone the reporting 10 date. 11 (5) All holders of property presumed abandoned under this section that 12 know the whereabouts of the owner of such property shall, before filing the 13 annual report, communicate with the owner and take necessary steps to prevent 14 abandonment from being presumed. Not more than one hundred twenty (120) days 15 before filing the report required by this section, the holder in possession of 16 property presumed abandoned and subject to custody as unclaimed property under 17 this chapter shall send written notice to the apparent owner at his last known 18 address informing him that the holder is in possession of property subject to 19 this chapter if the holder has in its records an address for the apparent 20 owner which the holder's records do not disclose to be inaccurate. 21 (6) The written notice required under this section shall include the name 22 and address of the apparent owner, the nature and amount of the property pre- 23 sumed abandoned in the holder's possession, the name and address of the holder 24 of the property presumed abandoned, a request that the apparent owner identify 25 whether the property presumed abandoned is or is not unclaimed property under 26 this chapter, and the reasons therefor, and any other criteria the administra- 27 tor deems appropriate. 28 (7) If the apparent owner completes and returns the written notice 29 described in subsection (6) of this section to the holder, and the apparent 30 owner indicates a claim to the property presumed abandoned or indicates that 31 the property identified in the written notice is not abandoned property, the 32 holder need not pay or deliver the property to the administrator, and the 33 property shall not be considered abandoned. 34 (8) In the event a holder receives a written notice as described in sub- 35 section (7) of this section demonstrating that certain property is not aban- 36 doned, a new presumption of abandonment may arise for such property due to the 37 passage of time. The date the holder receives the written notice shall be 38 deemed the date such property became payable or distributable for the purposes 39 of calculating whether a presumption of abandonment has arisen. 40 (9) A report filed pursuant to this section shall be presumed accurate if 41 the holder has maintained adequate records sufficient to establish by a pre- 42 ponderance of evidence that each item on the report is accurate and correct. 43 SECTION 7. This act shall be in full force and effect on and after Janu- 44 ary 1, 2003.
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-sixth Legislature Second Regular Session - 2002 Moved by Bunderson Seconded by Marley IN THE SENATE SENATE AMENDMENT TO H.B. NO. 439 1 AMENDMENTS TO BILL 2 On page 1 of the printed bill, delete lines 18 through 43; on page 2, 3 delete lines 1 through 10; and renumber the remaining sections of the bill 4 accordingly. 5 CORRECTIONS TO TITLE 6 On page 1, in line 2, following "LAW;" delete the remainder of the line; 7 delete line 3; and in line 4, delete "CHECKS AND MONEY ORDERS AND TO MAKE 8 TECHNICAL CORRECTIONS;".
STATEMENT OF PURPOSE RS 11469 This bill changes the 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: Dan John / Ted Spangler Agency: Revenue and Taxation (Idaho State Tax Commission) Phone: 334-7530 Statement of Purpose/Fiscal Impact H 439