Legislature(1995 - 1996)
1996-01-19 House Journal
Full Journal pdf1996-01-19 House Journal Page 2486 HB 434 HOUSE BILL NO. 434 by the House Rules Committee by request of the Governor, entitled: An Act relating to unclaimed property; and providing for an effective date. was read the first time and referred to the State Affairs, Labor & Commerce and Judiciary Committees. The following fiscal note applies: Zero fiscal note, Dept. of Revenue, 1/19/96 The Governor's transmittal letter, dated January 19, 1996, appears below: 1996-01-19 House Journal Page 2487 HB 434 Dear Speaker Phillips: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting a bill that would update Alaskas law governing the handling of unclaimed property to streamline the process for the convenience of both the state and the property holders. Unclaimed, or abandoned, personal property includes money left in bank savings or insurance accounts or deposits left with utilities because the businesses cannot locate the owners. The state acts as the custodian for such property and protects it until an owner or heir claims it. This bill includes recommendations from an audit performed last year that would reduce paperwork and improve efforts to locate unclaimed property owners. Under this bill, mutual funds would be defined in unclaimed property statutes, allowing for reporting and payment to the state of unclaimed interests in mutual funds. This bill also requires that all unclaimed property holders report to the state at the same time. This will eliminate duplicate reports and provide for payment of unclaimed interests at the time the report is made. The value of interests that can be reported to the state without complete detail is raised from $25 and $50 to a uniform $100. This will mean less paperwork and administrative overhead for unclaimed property holders. The bill also puts a statutory limit on the amount of finders fee that a person can charge to search for owners of unclaimed property. There have been reports of some abuses nationwide of finders fees being charged at up to 50 percent of the value of the property, even when the person was easy to locate. This bill would protect Alaskans claiming property abandonment in this state by limiting these fees to 10 percent of the value of the property. In addition, this bill places restrictions on agreements between owners of unclaimed property and their finders, in order to protect the property owners and the state. An agreement would be void if it does not disclose the value of the property involved or if the agreement was reached before the state has held the property for at least two years. 1996-01-19 House Journal Page 2488 HB 434 This bill represents an important step forward to update Alaskas unclaimed property laws. I urge your support. Sincerely, /s/ Tony Knowles Governor