CSSB 231(FIN): "An Act relating to unclaimed property; and providing for an effective date."
00 CS FOR SENATE BILL NO. 231(FIN) 01 "An Act relating to unclaimed property; and providing for an effective date." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 34.45.110(a) is amended to read: 04 (a) Except as otherwise provided in AS 34.45.120 - 34.45.780, all intangible 05 property, including income or increment derived from the property, less lawful 06 charges, that is held, issued, or owing in the ordinary course of a holder's business and 07 has remained unclaimed by the owner for more than three [FIVE] years after 08 becoming payable or distributable is presumed abandoned. 09 * Sec. 2. AS 34.45.150(a) is amended to read: 10 (a) Other than money payable on an instrument that is subject to 11 AS 34.45.140, money payable on a check, draft, or similar instrument on which a 12 banking or financial organization is directly liable, including a cashier's check and a 13 certified check, that has been outstanding for more than five [SEVEN] years after it 14 was payable or after its issuance if payable on demand, is presumed abandoned. This 15 presumption does not apply if the owner, within the preceding five [SEVEN] years,
01 has communicated in writing with the banking or financial organization concerning 02 the instrument or has otherwise indicated an interest as evidenced by a memorandum 03 or other record, on file, prepared by an employee of the organization. 04 * Sec. 3. AS 34.45.160(a) is amended to read: 05 (a) A demand, savings, or matured time deposit with a banking or financial 06 organization, including a deposit that is automatically renewable, and money paid 07 toward the purchase of a share, a mutual investment certificate, or other intangible 08 property interest in a banking or financial organization is presumed abandoned unless 09 the owner, within the preceding five [SEVEN] years, has 10 (1) in the case of a deposit, increased or decreased its amount or 11 presented the passbook or other similar evidence of the deposit for the crediting of 12 interest; 13 (2) communicated in writing with the banking or financial organization 14 concerning the property; or 15 (3) otherwise indicated an interest in the property as evidenced by a 16 memorandum or other record, on file, prepared by an employee of the banking or 17 financial organization [; 18 (4) OWNED OTHER PROPERTY TO WHICH (1), (2), OR (3) OF 19 THIS SUBSECTION APPLIES AND THE BANKING OR FINANCIAL 20 ORGANIZATION HAS COMMUNICATED IN WRITING WITH THE OWNER 21 WITH REGARD TO THE PROPERTY THAT WOULD OTHERWISE BE 22 PRESUMED ABANDONED UNDER THIS SUBSECTION AT THE ADDRESS TO 23 WHICH COMMUNICATIONS REGARDING THE OTHER PROPERTY ARE 24 REGULARLY SENT; OR 25 (5) HAD ANOTHER RELATIONSHIP WITH THE BANKING OR 26 FINANCIAL ORGANIZATION CONCERNING WHICH THE OWNER HAS 27 (A) COMMUNICATED IN WRITING WITH THE 28 BANKING OR FINANCIAL ORGANIZATION OR OTHERWISE 29 INDICATED AN INTEREST AS EVIDENCE BY A MEMORANDUM OR 30 OTHER RECORD, ON FILE, PREPARED BY AN EMPLOYEE OF THE 31 BANKING OR FINANCIAL ORGANIZATION; AND
01 (B) THE BANKING OR FINANCIAL ORGANIZATION 02 COMMUNICATES IN WRITING WITH THE OWNER WITH REGARD TO 03 THE PROPERTY THAT WOULD OTHERWISE BE ABANDONED 04 UNDER THIS SUBSECTION AT THE ADDRESS TO WHICH 05 COMMUNICATIONS REGARDING THE OTHER RELATIONSHIP 06 REGULARLY ARE SENT]. 07 * Sec. 4. AS 34.45.170(a) is amended to read: 08 (a) Money held or owing under a life or endowment insurance policy or 09 annuity contract that has matured or terminated is presumed abandoned if unclaimed 10 for more than three [FIVE] years after the money became due and payable as 11 established from the records of the insurance company holding or owing the money. 12 [HOWEVER, PROPERTY DESCRIBED IN (c)(2) OF THIS SECTION IS 13 PRESUMED ABANDONED IF UNCLAIMED FOR MORE THAN TWO YEARS.] 14 * Sec. 5. AS 34.45 is amended by adding a new section to read: 15 Sec. 34.45.175. Certain property distributed in insurance company 16 reorganizations. (a) The following property distributable in the course of a 17 demutualization or related reorganization of an insurance company is considered 18 abandoned two years after the date of demutualization or reorganization as follows: 19 (1) money that remains unclaimed and the owner has not otherwise 20 communicated with the holder or its agent regarding the property as evidenced by a 21 memorandum or other record on file with the holder or its agent; 22 (2) stock or other equity interest if 23 (A) the instruments or statements reflecting the distribution are 24 either mailed to the owner and returned by the post office as undeliverable, or 25 not mailed to the owner because of an address on the books and records of the 26 holder that is known to be incorrect; and 27 (B) the owner has not otherwise communicated with the holder 28 or its agent regarding the property as evidenced by a memorandum or other 29 record on file with the holder or agent. 30 (b) Property that is not subject to (a) of this section is reportable as otherwise 31 provided in AS 34.45.110 - 34.45.780.
01 * Sec. 6. AS 34.45.200 is repealed and reenacted to read: 02 Sec. 34.45.200. Stock and other intangible interests in business 03 associations. (a) Stock or other equity interest in a business association is presumed 04 abandoned five years after the earliest of 05 (1) the date of the most recent dividend, stock split, or other 06 distribution unclaimed by the owner; 07 (2) the date that a statement of account or other notification or 08 communication concerning the stock or other equity interest was returned as 09 undeliverable; or 10 (3) the date that the holder of the stock or other equity interest 11 discontinued mailings, notifications, or communications to the owner. 12 (b) Unmatured or unredeemed debt of a business association, other than a 13 bearer bond or an original issue discount bond, is presumed abandoned five years after 14 the date of the most recent interest payment unclaimed by the owner. 15 (c) Matured or redeemed debt, including bearer bonds and original issue 16 discount bonds, is presumed abandoned five years after the date of maturity or 17 redemption. 18 (d) At the time property is presumed abandoned under this section, any other 19 property right accrued or accruing to the owner as a result of the property interest and 20 not previously presumed abandoned is also presumed abandoned. 21 (e) A distribution of net margins by a cooperative incorporated under 22 AS 10.25 is presumed abandoned if the distribution remains unclaimed by the owner 23 for more than one year after the date authorized for the distribution. The distribution 24 presumed abandoned under this subsection reverts to the cooperative if the cooperative 25 has, at least six months before the proposed date that the distribution reverts to the 26 cooperative, both 27 (1) mailed a notice of the proposed reversion to the last known address 28 of the owner as shown on the cooperative records; and 29 (2) published notice of the proposed reversion in the manner provided 30 by law or court rule for service of a summons by publication. 31 * Sec. 7. AS 34.45.220(a) is amended to read:
01 (a) Intangible property and income or increment derived from the intangible 02 property held in a fiduciary capacity for the benefit of another person is presumed 03 abandoned unless the owner, within three [FIVE] years after it has become payable or 04 distributable, has increased or decreased the principal, accepted payment of principal 05 or income, communicated concerning the property, or otherwise indicated an interest 06 as evidenced by a memorandum or other record, on file, prepared by the fiduciary. 07 * Sec. 8. AS 34.45.240(a) is amended to read: 08 (a) A gift certificate or a credit memo, issued in the ordinary course of an 09 issuer's business, that remains unclaimed by the owner for more than three [FIVE] 10 years after becoming payable or distributable is presumed abandoned. 11 * Sec. 9. AS 34.45 is amended by adding a section to article 3 to read: 12 Sec. 34.45.270. Burden of proof as to property evidenced by record of 13 check, draft, or similar instrument. A record of the issuance of a check, draft, or 14 similar instrument is prima facie evidence of an obligation. In claiming property from 15 a holder who is also the issuer, the department's burden of proof as to the existence 16 and amount of the property and its abandonment is satisfied by showing issuance of 17 the instrument and passage of the requisite period of abandonment. Defenses of 18 payment, satisfaction, discharge, and want of consideration are affirmative defenses 19 that must be established by the holder. 20 * Sec. 10. AS 34.45.280(f) is repealed and reenacted to read: 21 (f) The requirements of this section apply to the holder of intangible property 22 with a total aggregate value greater than $750 that is presumed abandoned under 23 AS 34.45.110 - 34.45.780 during the year preceding June 30 of each year. For 24 purposes of determining total aggregate value under this subsection, the holder shall 25 include all intangible property from prior years that was not reported under 26 AS 34.45.110 - 34.45.780. 27 * Sec. 11. AS 34.45.290 is repealed and reenacted to read: 28 Sec. 34.45.290. Requests for reports and examination of records. (a) The 29 department may require a person who has not filed a report under AS 34.45.280 or a 30 person who the department believes has filed an inaccurate, incomplete, or false 31 report, to file a verified report in a form specified by the department. The report must
01 state whether the person is holding property reportable under AS 34.45.110 - 02 34.45.780, describe property not previously reported or as to which the department has 03 made inquiry, and specifically identify and state the amounts of the property that may 04 be in issue. 05 (b) The department, at reasonable times and upon reasonable notice, may 06 examine the records of any person to determine whether the person has complied with 07 AS 34.45.110 - 34.45.780. The department may conduct the examination even if the 08 person believes it is not in possession of any property that must be reported, paid, or 09 delivered under AS 34.45.110 - 34.45.780. The department may contract with any 10 other person to conduct the examination on behalf of the department. 11 (c) The department at reasonable times may examine the records of an agent, 12 including a dividend disbursing agent or transfer agent, of a business association that 13 is the holder of property presumed abandoned if the department has given the notice 14 required by (b) of this section to both the association and the agent at least 90 days 15 before the examination. 16 (d) Documents and working papers obtained or compiled by the department, 17 or the department's agents, employees, contractors, or designated representatives in the 18 course of conducting an examination under AS 34.45.110 - 34.45.780 are confidential 19 and are not public records, but the documents and papers may be 20 (1) used by the department in the course of an action to collect 21 unclaimed property or otherwise enforce AS 34.45.110 - 34.45.780; 22 (2) used in joint examinations conducted with or under an agreement 23 with another state, the federal government, or any other governmental subdivision, 24 agency, or instrumentality; 25 (3) produced under subpoena or court order; or 26 (4) disclosed to the unclaimed property office of another state for that 27 state's use in circumstances equivalent to those described in this subsection, if the 28 other state is bound to keep the documents and papers confidential. 29 (e) If an examination of the records of a person results in the disclosure of 30 property reportable under AS 34.45.110 - 34.45.780, the department may assess the 31 cost of the examination against the holder at the rate of $200 a day for each examiner,
01 or a greater amount that is reasonable and was incurred, but the assessment may not 02 exceed the value of the property found to be reportable under AS 34.45.110 - 03 34.45.780. The cost of an examination made under (c) of this section may be assessed 04 only against the business association. 05 (f) If a holder does not maintain the records required by AS 34.45.300 and the 06 records of the holder available for the periods subject to AS 34.45.110 - 34.45.780 are 07 insufficient to permit the preparation of a report, the department may require the 08 holder to report and pay to the department the amount the department reasonably 09 estimates, on the basis of any available records of the holder or by any other 10 reasonable method of estimation, should have been but was not reported. 11 * Sec. 12. AS 34.45.300(a) is repealed and reenacted to read: 12 (a) Except as otherwise provided in (b) of this section, a holder required to file 13 a report under AS 34.45.280 shall maintain the records containing the information 14 required to be included in the report for 10 years after the holder files the report, 15 unless a shorter period is provided by regulations adopted by the department. 16 * Sec. 13. AS 34.45.310 is repealed and reenacted to read: 17 Sec. 34.45.310. Notice and publication of lists of unclaimed property. (a) 18 The department shall notify apparent owners of unclaimed property under 19 AS 34.45.110 - 34.45.780 in the manner and method set out in (b) of this section. In 20 deciding whether to use an additional method specified in (b)(2) of this section, and 21 which of those methods to use, the department shall employ the most cost-effective 22 method available within its appropriations. 23 (b) The department 24 (1) shall notify all apparent owners of the unclaimed property in 25 accordance with this section by means of posting on the department's website on the 26 Internet; 27 (2) may use any of the following to provide additional notice to the 28 apparent owners: 29 (A) publication in a newspaper of general circulation in the 30 area of the state in which the last known address of a person to be named in the 31 notice is located, or if the address is unknown, in the area in which the holder
01 has its principal place of business in the state; 02 (B) individual contact by regular or electronic mail, or by 03 telephone, if the department has current contact information on file under 04 AS 34.45.110 - 34.45.780; 05 (C) any other manner and method that the department considers 06 effective for providing notice and publication under AS 34.45.110 - 34.45.780. 07 (c) In its notice and publication under (b) of this section, the department shall 08 provide the names of the apparent owners of the property and information regarding 09 recovery of the unclaimed property. 10 (d) The department is not required to publish in the notice an item of less than 11 $100 in value. 12 (e) This section does not apply to money payable on traveler's checks, money 13 orders, and other written instruments presumed abandoned under AS 34.45.140. 14 * Sec. 14. AS 34.45.320(d) is amended to read: 15 (d) The holder of an equity [OWNERSHIP] interest under AS 34.45.200 shall 16 deliver a duplicate certificate, or other evidence of ownership if the holder does not 17 issue certificates of ownership, to the department. Upon delivery of a duplicate 18 certificate to the department, the holder and a transfer agent, registrar, or other person 19 acting for or on behalf of a holder in executing or delivering the duplicate certificate is 20 relieved of all liability, in accordance with the provisions of AS 34.45.330 to every 21 person, including a person acquiring the original certificate or the duplicate of the 22 certificate issued to the department, for loss or damage resulting to a person by the 23 issuance and delivery to the department of the duplicate certificate. 24 * Sec. 15. AS 34.45.330(c) is amended to read: 25 (c) A holder who has delivered property [, INCLUDING A CERTIFICATE 26 OF AN OWNERSHIP INTEREST IN A BUSINESS ASSOCIATION,] other than 27 money to the department under AS 34.45.110 - 34.45.430 [,] may reclaim the property 28 if it is still in the possession of the department, without payment of a fee or other 29 charge, upon filing proof that the owner has claimed the property from the holder. 30 * Sec. 16. AS 34.45.760(10) is amended to read: 31 (10) "intangible property"
01 (A) includes 02 (i) money, checks, drafts, warrants, deposits, interest, 03 dividends, and income; 04 (ii) credit balances, customer overpayments, gift 05 certificates, security deposits, refunds, credit memos, unpaid wages, 06 and unidentified remittances; 07 (iii) stocks and other intangible equity [OWNERSHIP] 08 interests in business associations; 09 (iv) money deposited to redeem stocks, bonds, coupons, 10 and other securities, or to make distributions; 11 (v) amounts due and payable under the terms of 12 insurance policies; [AND] 13 (vi) amounts distributable from a trust or custodial fund 14 established under a plan to provide health, welfare, pension, vacation, 15 severance, retirement, death, stock purchase, profit-sharing, employee 16 savings, supplemental unemployment insurance, or similar benefits; 17 and 18 (vii) amounts due and payable as mineral proceeds; 19 (B) does not include 20 (i) unused airline tickets; 21 (ii) shares of stock issued by a corporation organized 22 under 43 U.S.C. 1601 - 1629a (Alaska Native Claims Settlement Act) 23 or unclaimed dividends payable on the shares of stock; or 24 (iii) overpaid contributions by employers to the 25 unemployment compensation fund under AS 23.20.130; 26 * Sec. 17. AS 34.45.760 is amended by adding new paragraphs to read: 27 (18) "gift certificate" means an obligation of a business association 28 arising from a transaction between the business association and a consumer to provide 29 goods or services at a future date; "gift certificate" includes a gift certificate, stored 30 value card, gift card, on-line gift account, or other representation or evidence of the 31 obligation of a business association;
01 (19) "mineral" means gas; oil; other gaseous, liquid, and solid 02 hydrocarbons; oil shale; cement material; sand and gravel; road material; building 03 stone; chemical raw material; gemstone; fissionable and nonfissionable ores; colloidal 04 and other clay; steam and other geothermal resources; or any other substance defined 05 as mineral by other state law; 06 (20) "mineral proceeds" means amounts payable for the extraction, 07 production, or sale of minerals, or, upon the abandonment of those payments, all 08 payments that become payable after the abandonment; "mineral proceeds" includes 09 amounts payable 10 (A) for the acquisition and retention of a mineral lease, 11 including bonuses, royalties, compensatory royalties, shut-in royalties, 12 minimum royalties, and delay rentals; 13 (B) for the extraction, production, or sale of minerals, including 14 net revenue interests, royalties, overriding royalties, extraction payments, and 15 production payments; 16 (C) under an agreement or option, including a joint operating 17 agreement, unit agreement, pooling agreement, and farm-out agreement. 18 * Sec. 18. AS 34.45.760(11) is repealed. 19 * Sec. 19. The uncodified law of the State of Alaska is amended by adding a new section to 20 read: 21 APPLICABILITY. The changes made by this Act apply to property that meets either 22 of the following: 23 (1) property that, on the effective date of this Act, already was subject to a 24 statutory provision amended by this Act; 25 (2) property that, on or after the effective date of this Act, becomes subject to 26 a statutory provision amended by this Act. 27 * Sec. 20. This Act takes effect immediately under AS 01.10.070(c).