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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 - 2002
IN 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 than seven five (75) years after it was payable or after its issuance if pay-
24 able on demand, is presumed abandoned, unless the owner, within seven five
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, within seven five (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
6 seven five (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 than seven five (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 before
23 May 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