2004 Legislation
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HOUSE BILL NO. 479 – Property, unclaimed, reports, info

HOUSE BILL NO. 479

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Bill Status



H0479...............................................by REVENUE AND TAXATION
UNCLAIMED PROPERTY - Amends existing law relating to unclaimed property to
require reporting of the full name and last known address of the insured or
annuitant or beneficiary when unclaimed funds of more than fifty dollars
held or owing under any life or endowment insurance policy or annuity
contract are reported; to require that the report of abandoned property
must be filed no later than November first of each year; to provide that
property escheats to the state of Idaho ten years after it is received by
the administrator of unclaimed property; to provide that the State Tax
Commission shall record the name and last known address of the person
entitled to the property within sixty days of transferring excess funds
from the unclaimed property account; and to provide that statements to
purchasers shall set forth amounts due by the holder.
                                                                        
01/19    House intro - 1st rdg - to printing
01/20    Rpt prt - to Rev/Tax
02/03    Rpt out - rec d/p - to 2nd rdg
02/04    2nd rdg - to 3rd rdg
02/09    3rd rdg - PASSED - 67-0-3
      AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Bedke, Bell,
      Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins,
      Crow, Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth,
      Eskridge, Field(18), Field(23), Gagner, Garrett, Harwood, Henbest,
      Jaquet, Jones, Kellogg, Kulczyk, Lake, Langford, Martinez, McKague,
      Meyer, Miller, Mitchell, Naccarato, Nielsen, Pasley-Stuart, Raybould,
      Ridinger, Ring, Ringo, Roberts, Robison, Rydalch, Sali, Sayler,
      Schaefer, Shepherd, Shirley, Skippen, Smith(30), Smith(24), Smylie,
      Snodgrass, Stevenson, Trail, Wills, Wood, Mr. Speaker
      NAYS -- None
      Absent and excused -- Langhorst, McGeachin, Moyle
    Floor Sponsor - Collins
    Title apvd - to Senate
02/10    Senate intro - 1st rdg - to Loc Gov
02/12    Rpt out - rec d/p - to 2nd rdg
02/13    2nd rdg - to 3rd rdg
03/02    3rd rdg - PASSED - 31-0-4
      AYES -- Andreason, Bailey, Brandt, Burkett, Burtenshaw, Calabretta,
      Cameron, Compton(Duncan), Darrington, Davis, Gannon, Geddes, Goedde,
      Hill, Ingram, Kennedy, Keough, Little, Lodge, Malepeai, Marley,
      McKenzie, Noble(Anderson), Noh, Pearce, Schroeder, Sorensen,
      Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- Bunderson, McWilliams, Richardson, Stegner
    Floor Sponsor - Werk
    Title apvd - to House
03/03    To enrol
03/04    Rpt enrol - Sp signed
03/05    Pres signed
03/08    To Governor
03/10    Governor signed
         Session Law Chapter 29
         Effective: 07/01/04

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 479
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO UNCLAIMED  PROPERTY;  AMENDING  SECTION  14-517,  IDAHO  CODE,  TO
  3        REQUIRE  REPORTING  OF THE FULL NAME AND LAST KNOWN ADDRESS OF THE INSURED
  4        OR ANNUITANT OR BENEFICIARY WHEN UNCLAIMED FUNDS OF MORE THAN  FIFTY  DOL-
  5        LARS HELD OR OWING UNDER ANY LIFE OR ENDOWMENT INSURANCE POLICY OR ANNUITY
  6        CONTRACT ARE REPORTED AND TO REQUIRE THAT THE REPORT OF ABANDONED PROPERTY
  7        MUST  BE FILED NO LATER THAN NOVEMBER FIRST OF EACH YEAR; AMENDING SECTION
  8        14-518, IDAHO CODE, TO PROVIDE THAT PROPERTY  ESCHEATS  TO  THE  STATE  OF
  9        IDAHO  TEN  YEARS  AFTER  IT IS RECEIVED BY THE ADMINISTRATOR OF UNCLAIMED
 10        PROPERTY; AMENDING SECTION 14-523, IDAHO CODE, TO PROVIDE THAT  THE  STATE
 11        TAX  COMMISSION SHALL RECORD THE NAME AND LAST KNOWN ADDRESS OF THE PERSON
 12        ENTITLED TO THE PROPERTY WITHIN SIXTY DAYS OF  TRANSFERRING  EXCESS  FUNDS
 13        FROM  THE  UNCLAIMED  PROPERTY ACCOUNT; AND AMENDING SECTION 14-543, IDAHO
 14        CODE, TO PROVIDE THAT STATEMENTS TO PURCHASERS SHALL SET FORTH AMOUNTS DUE
 15        BY THE HOLDER AND TO MAKE A TECHNICAL CORRECTION.
                                                                        
 16    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 17        SECTION 1.  That Section 14-517, Idaho Code, be, and the  same  is  hereby
 18    amended to read as follows:
                                                                        
 19        14-517.  REPORT  OF ABANDONED PROPERTY. (1) A person holding property tan-
 20    gible or intangible, presumed abandoned and subject to  custody  as  unclaimed
 21    property  under  this chapter shall report to the administrator concerning the
 22    property as provided in this section.
 23        (2)  The report must be verified and must include:
 24        (a)  Except with respect to traveler's checks and money orders, the  name,
 25        if  known,  and  last known address, if any, of each person appearing from
 26        the records of the holder to be the owner of property  presumed  abandoned
 27        under this chapter;
 28        (b)  In the case of unclaimed funds of more than fifty dollars ($50.00) or
 29        more held or owing under any life or endowment insurance policy or annuity
 30        contract, the full name and last known address of the insured or annuitant
 31        and  of  the beneficiary according to the records of the insurance company
 32        holding or owing the funds;
 33        (c)  In the case of the contents of a safe deposit box or other  safekeep-
 34        ing  repository  or of other tangible property, a description of the prop-
 35        erty and the place where it is held and may be inspected by  the  adminis-
 36        trator and any amounts owing to the holder;
 37        (d)  The  nature  and  identifying  number,  if any, or description of the
 38        property and the amount appearing from the records to be due;
 39        (e)  The date the property became payable, demandable, or returnable,  and
 40        the  date  of the last transaction with the apparent owner with respect to
 41        the property; and
 42        (f)  Other information the administrator prescribes by rule  as  necessary
 43        for the administration of the provisions of this chapter.
                                                                        
                                           2
                                                                        
  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 no later than November  1 of each
  7    year as of June 30 next preceding. On written request by any  person  required
  8    to file a report, the administrator may postpone the reporting date.
  9        (5)  All  holders  of  property presumed abandoned under this section that
 10    know the whereabouts of the owner of such property shall,  before  filing  the
 11    annual  report, communicate with the owner and take necessary steps to prevent
 12    abandonment from being presumed. Not more than one hundred twenty  (120)  days
 13    before filing the report required by this section, the holder in possession of
 14    property presumed abandoned and subject to custody as unclaimed property under
 15    this chapter shall send written notice to the apparent owner at his last known
 16    address  informing him that the holder is in possession of property subject to
 17    this chapter if the holder has in its records  an  address  for  the  apparent
 18    owner which the holder's records do not disclose to be inaccurate.
 19        (6)  The written notice required under this section shall include the name
 20    and  address of the apparent owner, the nature and amount of the property pre-
 21    sumed abandoned in the holder's possession, the name and address of the holder
 22    of the property presumed abandoned, a request that the apparent owner identify
 23    whether the property presumed abandoned is or is not unclaimed property  under
 24    this chapter, and the reasons therefor, and any other criteria the administra-
 25    tor deems appropriate.
 26        (7)  If  the  apparent  owner  completes  and  returns  the written notice
 27    described in subsection (6) of this section to the holder,  and  the  apparent
 28    owner  indicates  a claim to the property presumed abandoned or indicates that
 29    the property identified in the written notice is not abandoned  property,  the
 30    holder  need  not  pay  or  deliver the property to the administrator, and the
 31    property shall not be considered abandoned.
 32        (8)  In the event a holder receives a written notice as described in  sub-
 33    section  (7)  of this section demonstrating that certain property is not aban-
 34    doned, a new presumption of abandonment may arise for such property due to the
 35    passage of time. The date the holder receives  the  written  notice  shall  be
 36    deemed the date such property became payable or distributable for the purposes
 37    of calculating whether a presumption of abandonment has arisen.
 38        (9)  A report filed pursuant to this section shall be presumed accurate if
 39    the  holder  has maintained adequate records sufficient to establish by a pre-
 40    ponderance of evidence that each item on the report is accurate and correct.
                                                                        
 41        SECTION 2.  That Section 14-518, Idaho Code, be, and the  same  is  hereby
 42    amended to read as follows:
                                                                        
 43        14-518.  NOTICE  AND  PUBLICATION  OF LISTS OF ABANDONED PROPERTY. (1) The
 44    administrator shall cause a notice to be  published  annually  each  year,  at
 45    least  once a week for two (2) consecutive weeks in newspapers of general cir-
 46    culation, or in a published notice distributed, one  (1)  time  only,  concur-
 47    rently  with a newspaper of general circulation in the county of this state in
 48    which is located the last known address of any  person  to  be  named  in  the
 49    notice.  If  no  address  is  listed or the address is outside this state, the
 50    notice must be published in a newspaper which has general circulation, or in a
 51    published notice distributed concurrently with a newspaper which  has  general
 52    circulation  in the county in which the holder of the property has its princi-
 53    pal place of business within this  state.  Provided  however,  the  names  and
                                                                        
                                           3
                                                                        
  1    addresses located in a state which will receive the accounts because of recip-
  2    rocal  agreements as permitted by section 14-535, Idaho Code, need not be pub-
  3    lished. In the case of a notice which is  distributed  concurrently    with  a
  4    newspaper, the provisions of section 60-105, Idaho Code, relating to rates for
  5    official notices shall not apply.
  6        (2)  The  published  notice  must  be entitled "Notice of Names of Persons
  7    Appearing to be Owners of Abandoned Property" and contain:
  8        (a)  The names in alphabetical order and last known address,  if  any,  of
  9        persons listed in the report and entitled to notice;
 10        (b)  A  statement that information concerning the property may be obtained
 11        by any person possessing an interest in  the  property  by  addressing  an
 12        inquiry to the administrator;
 13        (c)  A  statement that the property is in the custody of the administrator
 14        and all claims must be directed to the administrator; and
 15        (d)  A statement that the property shall escheat to the state of Idaho and
 16        become the property of the state of Idaho if not claimed within  ten  (10)
 17        years after notice is published pursuant to this section it is received by
 18        the administrator.
 19        (3)  The  administrator is not required to publish in the notice any items
 20    of less than one hundred dollars ($100)  unless  the  administrator  considers
 21    their publication to be in the public interest.
 22        (4)  This  section is not applicable to sums payable on traveler's checks,
 23    money orders, and other written instruments presumed abandoned  under  section
 24    14-504, Idaho Code.
                                                                        
 25        SECTION  3.  That  Section  14-523, Idaho Code, be, and the same is hereby
 26    amended to read as follows:
                                                                        
 27        14-523.  DISPOSITION OF MONEY RECEIVED. (1) All money received under  this
 28    chapter,  including  the  proceeds  from  the  sale  of property under section
 29    14-522, Idaho Code, shall be deposited in the unclaimed property account.
 30        (2)  All money in the unclaimed property account  is  hereby  continuously
 31    appropriated  to the state tax commission, without regard to fiscal years, for
 32    expenditure in accordance with law in carrying out and  enforcing  the  provi-
 33    sions of this chapter, including, but not limited to, the following purposes:
 34        (a)  For  payment  of claims allowed by the state tax commission under the
 35        provisions of this chapter.
 36        (b)  For refund, to the person making such deposit of  amounts,  including
 37        overpayments, deposited in error in such account.
 38        (c)  For  payment of the cost of appraisals incurred by the state tax com-
 39        mission covering property held in the name of the account.
 40        (d)  For payment of the cost incurred by the state tax commission for  the
 41        purchase  of lost instrument indemnity bonds, or for payment to the person
 42        entitled thereto, for any unpaid lawful charges or costs which arose  from
 43        holding  any  specific property or any specific funds which were delivered
 44        or paid to the state tax commission, or which arose  from  complying  with
 45        this chapter with respect to such property or funds.
 46        (e)  For  payment  of amounts required to be paid by the state as trustee,
 47        bailee, or successor in interest to the preceding owner.
 48        (f)  For payment of costs of official advertising in connection  with  the
 49        sale of property held in the name of the account.
 50        (g)  For  transfer to the general account as provided in subsection (3) of
 51        this section.
 52        (h)  For transfer to the inheritance tax account  of  the  amount  of  any
 53        inheritance  taxes  determined  to  be due and payable to the state by any
                                                                        
                                           4
                                                                        
  1        claimant with respect to any property claimed by him under the  provisions
  2        of this chapter.
  3        (3)  At  the  end  of each month, or more often, if it deems it advisable,
  4    the state tax commission shall transfer all money in  the  unclaimed  property
  5    account in excess of two hundred fifty thousand dollars ($250,000) to the gen-
  6    eral  account. Before Within sixty (60) days of making this transfer, it shall
  7    record the name and last known address, if available, of each person appearing
  8    from the holder's report to be entitled to the property. The record  shall  be
  9    available for public inspection at all reasonable business hours.
 10        (4)  All  money  received  under this chapter, including the proceeds from
 11    the sale of property under section 14-522, Idaho Code, deposited in  the  gen-
 12    eral  account shall be retained by the state of Idaho for the purposes of this
 13    section and administered pursuant to this section for a  period  of  ten  (10)
 14    years. At the end of such period, those moneys which have not been claimed and
 15    paid  over  or  delivered  as  an allowed claim under this section and section
 16    14-524, Idaho Code, shall become due and payable by escheat to  the  state  of
 17    Idaho  and become the property of the state of Idaho without further action on
 18    the part of the administrator.
                                                                        
 19        SECTION 4.  That Section 14-543, Idaho Code, be, and the  same  is  hereby
 20    amended to read as follows:
                                                                        
 21        14-543.  SUCCESSORS'  LIABILITY.  (1)  If  any holder possessing unclaimed
 22    property under this act sells out its business or stock  of  goods,  the  pur-
 23    chaser of the business or stock of goods shall make inquiry of the administra-
 24    tor and withhold from the purchase price any amount of unclaimed property that
 25    may  be  due  under this act chapter until such time as the administrator pro-
 26    vides written notification stating that no amount is due.
 27        (2)  If the purchaser of a business or stock of goods  fails  to  withhold
 28    the  amounts  required  by  subsection  (1)  of this section from the purchase
 29    price, he becomes personally liable for the payment of the amount required  to
 30    be withheld to the extent of the purchase price valued in money.
 31        (3)  The administrator shall, as soon as practicable after receiving writ-
 32    ten  inquiry  as  to any amounts due, and no later than thirty (30) days after
 33    receipt of the inquiry or, if necessary, thirty (30) days from  the  date  the
 34    holder's  records  are  made  available for review under section 14-530, Idaho
 35    Code, but in any event no later than  sixty  (60)  days  after  receiving  the
 36    inquiry,  issue  a  statement to the purchaser setting forth the amount of tax
 37    due under this chapter by the holder, if any. The administrator's  failure  to
 38    issue  such  statement will release the purchaser from any obligation to with-
 39    hold from the purchase price the amounts as above required, or  responsibility
 40    for  the  reporting or delivery of any unclaimed property due and owing by the
 41    holder under section 14-517, Idaho Code, and section 14-519, Idaho Code.

Statement of Purpose / Fiscal Impact


                     STATEMENT  OF  PURPOSE
                            RS 13514
This bill makes updates and corrections to Idaho's adoption of the
Uniform Unclaimed Property Act.  

Section 1 resolves a conflict between sections 14-517(2) and 14-
502(e) about reporting of the full name and last known address of
an insured, annuitant or the beneficiary entitled to unclaimed
funds under any life or endowment insurance policy or annuity
contract.  The "$50 or more" in 14-517 is conformed to the "more
than $50" in section 14-502.  Section 1 also clarifies that the
filing date for the report of unclaimed property is November 1, not
"before November 1."   

    Section 2 clarifies the ten-year time after which property
escheats to the state of Idaho.  It conforms the ten-year escheat
date of section 14-518   "10 years after published"   to that of
14-523(4)   "10 years after received."

  Section 3 requires the state tax commission to record the name
and last known address of the person entitled to the property
within sixty days of transferring excess funds from the unclaimed
property account.
Section 4 strikes a reference to "tax due" and substitutes a
reference to amounts due under the Unclaimed Property Act.  

                         FISCAL  IMPACT
No Fiscal effect.

CONTACT   
Name:     Dan John / Ted Spangler
Agency:   Tax Commission
Phone:    334-7530

Statement of Purpose/Fiscal Impact              H 479