HB 434 - UNCLAIMED PROPERTY The next order of business to come before the House State Affairs Committee was HB 434. CHAIR JAMES announced HB 434 and HCR 25 would be heard today but HB 354 would not be heard until Tuesday, March 5, 1996. CHAIR JAMES called on Bob Bartholomew, Department of Revenue, to present HB 434. Number 0615 BOB BARTHOLOMEW, Deputy Director, Central Office, Income and Excise Audit Division, Department of Revenue, said HB 434 addressed the unclaimed property program. The objective was to improve the program. This was the first revisit of the program, he explained, for both the state and the businesses it affected. He said the workload grew every year, and part of the legislation reduced the workload in-order-to continue to operate the program. He explained the statutes placed the state as the custodian of unclaimed property and was in charge of finding the owner. If the owner was not found, he stated, the proceeds went to the general fund. He further said HB 434 defined a mutual fund as other property so businesses could turn it over to the state as unclaimed property. The bill also clarified the combined reporting requirements, and unified the small property value to read $100 to reduce administrative workload and duplication. The bill also required the division to advertize one time per year saving about $20,000. The bill also required fee finders to disclose the value of the found property of which 90 percent was returned to the owner and 10 percent retained. MR. BARTHOLOMEW explained the amendments to HB 434 based on an audit. He explained the amendment to Section 1 clarified the language. The amendment to Section 5 changed the publication duplication. The amendment to Section 10 added the word "warrants" for clarification. He called the amendments technical. He announced several insurance companies, banks and the court system supported the amendments to HB 434. Number 1150 REPRESENTATIVE PORTER asked Mr. Bartholomew if HB 434 affected HB 295, allowing the municipalities to deal directly with their own property? Number 1165 MR. BARTHOLOMEW replied the amount of property concerned in HB 295 was small and would not affect the unclaimed property program. He explained HB 295 addressed property claimed in the law enforcement agencies as a result of an arrest, so it would not fall under the unclaimed property program. CHAIR JAMES called on the first witness via teleconference in Fairbanks, Sybil Skelton. Number 1260 SYBIL SKELTON expressed her personal opinions regarding HB 434. She stated she did not know if her oldest son was dead or alive and alleged he would be unclaimed property and feared he would be kept from her. In conclusion, she stated she was tired of being left out and treated like she did not know anything. Number 1378 REPRESENTATIVE ROBINSON moved to adopt Amendment 1 9-GH2025.A. Hearing no objection, it was so adopted. Number 1408 REPRESENTATIVE ROBINSON moved that CSHB 434(STA) move from the committee with individual recommendations and attached zero fiscal note. Hearing no objection, it was so moved from the House State Affairs Committee.