Print Friendly SENATE BILL NO. 1063 – Unclaimed dividend/funds/distribute
SENATE BILL NO. 1063
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S1063......................................................by STATE AFFAIRS
UNCLAIMED PROPERTY - Amends existing law to require that property from an
estate with no heirs or other claimants shall be paid to the Public School
Endowment Fund; to provide for distribution of funds received as unclaimed
dividends and interest paid by Idaho corporations to the Public School
Endowment Fund; to provide for recapture from the Public School Earnings
Reserve Fund if certain circumstances occur; and to require that property
from an estate in which an heir or claimant cannot be found shall, after
approximately five years, be paid to the Public School Endowment Fund.
01/29 Senate intro - 1st rdg - to printing
01/30 Rpt prt - to St Aff
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE SENATE
SENATE BILL NO. 1063
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO ESCHEATED AND UNCLAIMED PROPERTY; AMENDING SECTION 14-113, IDAHO
3 CODE, TO REQUIRE THAT PROPERTY FROM AN ESTATE WITH NO HEIRS OR OTHER
4 CLAIMANTS SHALL BE PAID TO THE PUBLIC SCHOOL ENDOWMENT FUND; AMENDING SEC-
5 TION 14-522, IDAHO CODE, TO PROVIDE A CORRECT CODE CITATION AND TO CORRECT
6 CODIFIER'S ERRORS; AMENDING SECTION 14-523, IDAHO CODE, TO PROVIDE FOR
7 DISTRIBUTION OF FUNDS RECEIVED FROM UNCLAIMED SHARES AND DIVIDENDS OF
8 IDAHO CORPORATIONS TO THE PUBLIC SCHOOL ENDOWMENT FUND, TO PROVIDE FOR
9 RECAPTURE FROM THE PUBLIC SCHOOL EARNINGS RESERVE FUND IF CERTAIN CIRCUM-
10 STANCES OCCUR AND TO MAKE TECHNICAL CORRECTIONS; AND AMENDING SECTION
11 15-3-914, IDAHO CODE, TO REQUIRE THAT PROPERTY FROM AN ESTATE IN WHICH AN
12 HEIR OR CLAIMANT CANNOT BE FOUND SHALL, AFTER APPROXIMATELY FIVE YEARS, BE
13 PAID TO THE PUBLIC SCHOOL ENDOWMENT FUND AND TO MAKE TECHNICAL CORREC-
15 Be It Enacted by the Legislature of the State of Idaho:
16 SECTION 1. That Section 14-113, Idaho Code, be, and the same is hereby
17 amended to read as follows:
18 14-113. UNCLAIMED MONEYS -- PAYMENT INTO STATE TREASURY PUBLIC SCHOOL
19 INCOME ENDOWMENT FUND -- ESCHEAT. After a final settlement of the affairs of
20 any estate, if there be no heirs or other claimants thereof, the administrator
21 must pay into the state tax commission any and all moneys and effects reported
22 as unclaimed property as required by section 14-517, Idaho Code, and the pro-
23 cedure for distribution of abandoned property outlined in the unclaimed prop-
24 erty act shall be followed which shall accrue and be transferred to the public
25 school endowment fund created pursuant to section 4, article IX, of the con-
26 stitution of the state of Idaho.
27 SECTION 2. That Section 14-522, Idaho Code, be, and the same is hereby
28 amended to read as follows:
29 14-522. PUBLIC SALE OF ABANDONED PROPERTY. (1) The administrator, within
30 three (3) years after the receipt of abandoned property, shall sell it to the
31 highest bidder at public sale in whatever city affords in the judgment of the
32 administrator, the most favorable market for the property involved. The admin-
33 istrator may decline the highest bid and reoffer the property for sale if in
34 the judgment of the administrator, the bid is insufficient. If in the judgment
35 of the administrator, the probable cost of sale exceeds the value of the prop-
36 erty, it need not be offered for sale. Any sale held under this section must
37 be preceded by a single publication of notice, at least three (3) weeks in
38 advance of sale, in a newspaper of general circulation in the county in which
39 the property is to be sold.
40 (2) Securities listed on an established stock exchange must be sold at
41 prices prevailing at the time of sale of on the exchange. Other securities may
1 be sold over the counter at prices prevailing at the time of sale or by any
2 other method the administrator considers advisable.
3 (3) A person making a claim under this chapter is entitled to receive
4 either the securities delivered to the administrator to by the holder, if they
5 still remain in the hands of the administrator, or the proceeds received from
6 the sale, less any amounts deducted pursuant to section 14-523( 23), Idaho
7 Code, but no person has any claim under this chapter against the state, the
8 holder, any transfer agent, registrar, or other person acting for or on behalf
9 of a holder for any appreciation in the value of the property occurring after
10 delivery by the holder to the administrator.
11 (4) The purchaser of property at any sale conducted by the administrator
12 pursuant to this chapter takes the property free of all claims of the owner or
13 previous holder thereof and of all persons claiming through or under them. The
14 administrator shall execute all documents necessary to complete the transfer
15 of ownership.
16 SECTION 3. That Section 14-523, Idaho Code, be, and the same is hereby
17 amended to read as follows:
18 14-523. DISPOSITION OF MONEY RECEIVED. (1) All money received under this
19 chapter, including the proceeds from the sale of property under section
20 14-522, Idaho Code, shall be deposited in the unclaimed property account.
21 (2) An amount equal to the funds received from unclaimed shares and divi-
22 dends of any corporation incorporated under the laws of the state of Idaho
23 shall be transferred from the unclaimed property account to the public school
24 endowment fund created pursuant to section 4, article IX, of the constitution
25 of the state of Idaho. In the event that any funds are required to refund any
26 funds deposited in the public school endowment fund under this section or
27 under section 14-113 or 15-3-914, Idaho Code, the state tax commission shall
28 offset the amount of such refund against future transfers to the public school
29 endowment fund. In the event that in one (1) fiscal year there are insuffi-
30 cient amounts to effect the offset, the balance shall be recaptured from the
31 public school earnings reserve fund established under section 33-902A, Idaho
33 (3) All other money in the unclaimed property account is hereby continu-
34 ously appropriated to the state tax commission, without regard to fiscal
35 years, for expenditure in accordance with law in carrying out and enforcing
36 the provisions of this chapter, including, but not limited to, the following
38 (a) For payment of claims allowed by the state tax commission under the
39 provisions of this chapter.
40 (b) For refund, to the person making such deposit of amounts, including
41 overpayments, deposited in error in such account.
42 (c) For payment of the cost of appraisals incurred by the state tax com-
43 mission covering property held in the name of the account.
44 (d) For payment of the cost incurred by the state tax commission for the
45 purchase of lost instrument indemnity bonds, or for payment to the person
46 entitled thereto, for any unpaid lawful charges or costs which arose from
47 holding any specific property or any specific funds which were delivered
48 or paid to the state tax commission, or which arose from complying with
49 this chapter with respect to such property or funds.
50 (e) For payment of amounts required to be paid by the state as trustee,
51 bailee, or successor in interest to the preceding owner.
52 (f) For payment of costs of official advertising in connection with the
53 sale of property held in the name of the account.
1 (g) For transfer to the general account fund as provided in subsection
2 ( 34) of this section.
3 (h) For transfer to the inheritance tax account of the amount of any
4 inheritance taxes determined to be due and payable to the state by any
5 claimant with respect to any property claimed by him under the provisions
6 of this chapter.
7 ( 34) At the end of each month, or more often, if it deems it advisable,
8 the state tax commission shall transfer all money in the unclaimed property
9 account in excess of two hundred fifty thousand dollars ($250,000) to the gen-
10 eral account fund. Within sixty (60) days of making this transfer, it shall
11 record the name and last known address, if available, of each person appearing
12 from the holder's report to be entitled to the property. The record shall be
13 available for public inspection at all reasonable business hours.
14 ( 45) All money received under this chapter, including the proceeds from
15 the sale of property under section 14-522, Idaho Code, deposited in the gen-
16 eral account fund shall be retained by the state of Idaho for the purposes of
17 this section and administered pursuant to this section for a period of ten
18 (10) years. At the end of such period, those moneys which have not been
19 claimed and paid over or delivered as an allowed claim under this section and
20 section 14-524, Idaho Code, shall become due and payable by escheat to the
21 state of Idaho and become the property of the state of Idaho without further
22 action on the part of the administrator.
23 SECTION 4. That Section 15-3-914, Idaho Code, be, and the same is hereby
24 amended to read as follows:
25 15-3-914. DISPOSITION OF UNCLAIMED ASSETS. If an heir, devisee or claim-
26 ant cannot be found, the personal representative shall distribute the share of
27 the missing person to his trustee if one has been appointed; or, if no trustee
28 has been appointed, shall file the report of abandoned property required by
29 section 14-517, Idaho Code, and proceed to dispose of the property in the man-
30 ner set forth in the "unclaimed property act," provided, however, that in the
31 event no person appears to claim such property within eighteen one thousand
32 eight hundred and twenty-seven (1,827) days, (approximately five (5) years ),
33 from the date of the appointment of the personal representative, the moneys or
34 property so deposited shall accrue and be set over to the general account
35 transferred to the public school endowment fund created pursuant to section 4,
36 article IX, of the constitution of the state of Idaho.
STATEMENT OF PURPOSE
This bill changes the distribution of funds received as
escheats (estates for which no heirs can be located) and as
unclaimed shares and dividends paid by Idaho corporations to
conform to the requirement of Article 9, Section 4 of the Idaho
Constitution. That section requires that all such receipts be a
part of the Public School Permanent Endowment Fund. This allows
the assets of those who pass from this life without heirs to be
retained as a perpetual memorial and provide an ongoing legacy of
income to Idaho schools. Currently, as required by statute, the
State Tax Commission is distributing these funds to the General
The future annual impact of this change on the General Fund is
expected to be immaterial. In fiscal 2008, assuming no claimant
steps forward, escheated estates of $3,894.98 are scheduled to be
transferred to the General Fund. Over the last eleven years
(fiscal 1997 thru fiscal 2007), $351,425.60 from forty-nine
escheated estates and about $1,500 of unclaimed dividends and stock
were (or soon will be) transferred to the General Fund, an average
of approximately $32,000 per year.
In separate legislation, the Board of Land Commissioners, in
its role as a fiduciary trustee of the endowment, is requesting
that the Public School Fund be made whole by restoring the
$351,425.60 of escheated estates.
Name: Senator Brad Little
Representative Max Black
Endowment Fund Insurance Board
STATEMENT OF PURPOSE/FISCAL NOTE S 1063