05/06/2004 09:00 AM House FIN

CS FOR SENATE BILL NO. 231(FIN)                                                                                               
                                                                                                                                
     An Act relating to unclaimed property; and providing                                                                       
     for an effective date.                                                                                                     
                                                                                                                                
TOM  BOUTIN,  DEPUTY  COMMISSIONER,  DEPARTMENT  OF  REVENUE,                                                                   
stated that  SB 231  would bring Alaska  in concert  with the                                                                   
unclaimed property uniform codes across the nation.                                                                             
                                                                                                                                
RACHEL  LEWIS,  UNCLAIMED  PROPERTY  MANAGER,  DEPARTMENT  OF                                                                   
REVENUE, added that the entire  bill except for four sections                                                                   
had  been   directly   taken  from  the   1995  Uniform   Law                                                                   
Commissioners Act on Unclaimed  Property.  Alaska adopted the                                                                   
1981 Act in 1986.   Alaska is a little outdated  and adoption                                                                   
of SB 231 would  bring Alaska up to date.   She addressed the                                                                   
issues that are different from the 1995 Act.                                                                                    
                                                                                                                                
   ·    Page 3, Section 5, speaks to "demutualization" of                                                                       
        insurance companies.  Demutualization  was a new type                                                                   
        of  property,  not  existing  in  1995  and  was  not                                                                   
        addressed in  that Act.   There  are fourteen  states                                                                   
        that have already adopted that language.                                                                                
   ·    Page 5, Section 10, would be unique language for                                                                        
        Alaska, for  unclaimed  property under  the value  of                                                                   
        $750 dollars, the State  of Alaska does not  want the                                                                   
        hassle  of  the  $2.50  payment.     It  would  be  a                                                                   
        convenence and a  courtesy.  That language  currently                                                                   
        exists in statute and is ambiguous.                                                                                     
   ·    Page 7, Section 13, requires advertising the names                                                                      
        of people with unclaimed  property of $100  dollar or                                                                   
        more.  Last year,  the Department spent  $30 thousand                                                                   
        dollars  to  advertise   3,000  names.     The  State                                                                   
        received  only  340  claims  for   that  work.    The                                                                   
        Department should  evaluate the  best way to  promote                                                                   
        it, encouraging  owners  to  come forward  and  claim                                                                   
        their property.                                                                                                         
   ·    Page 9, Section 17, amends "Gift Certificates" by                                                                       
        adding new language.                                                                                                    
                                                                                                                                
Representative   Stoltze   commented    that   some   utility                                                                   
cooperatives use  their own claims and redistribute  them for                                                                   
scholarships.   He  asked if  that  would be  affected.   Ms.                                                                   
Lewis replied  that utility  coops have  an unique  exemption                                                                   
and  the legislation  would  not touch  that  concern.   They                                                                   
would  be responsible  for  locating  their members  and  the                                                                   
money would continue to be pooled through the coop.                                                                             
                                                                                                                                
Representative Croft  asked if the definition  of mineral and                                                                   
mineral  proceeds had  been  made in  the  legislation.   Ms.                                                                   
Lewis responded that it has not  been defined before and that                                                                   
it would be taken directly from the 1995 Act.                                                                                   
                                                                                                                                
Representative  Fate asked  the procedure  after the  initial                                                                   
notification.  Ms.  Lewis advised that there  are over 80,000                                                                   
names listed for  unclaimed properties ranging  in value from                                                                   
$25  to  $250,000  dollars.     Everyone  is  listed  on  the                                                                   
Internet.  The information is  "out there" but the Department                                                                   
does not  actively attempt  locating them.   The property  is                                                                   
held into perpetuity.                                                                                                           
                                                                                                                                
Representative  Fate  questioned  the number  of  people  not                                                                   
located.   Ms.  Lewis replied  that since  1986, $18  million                                                                   
dollars had been returned to people  living in Alaska.  There                                                                   
is  always a  25%-30% percentage  that cannot  be found,  but                                                                   
with technology, those numbers are decreasing.                                                                                  
                                                                                                                                
Representative  Chenault commented  on  the fiscal  analysis,                                                                   
noting  the increase.   Mr.  Boutin interjected  that it  was                                                                   
intended  to speed  up  the collection  process.   Ms.  Lewis                                                                   
added that the intent was to compress  seven years into five.                                                                   
                                                                                                                                
Representative Foster MOVED to  report CS SB 231 (FIN) out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS  SB 231  (FIN)  was reported  out  of Committee  with  "no                                                                   
recommendation" and with fiscal  note #2 by the Department of                                                                   
Revenue.