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 Alaska is a little outdated and adoption of SB 231 would bring Alaska up to date.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.