CS FOR SENATE BILL NO. 231(STA) "An Act relating to unclaimed property; and providing for an effective date." This was the second hearing for this bill in the Senate Finance Committee. Co-Chair Wilken stated this bill, sponsored by the Senate Rules Committee at the request of the Governor, "shortens the time period after which certain unclaimed property is presumed to be abandoned and must be transferred to the custody of the State. Senate Bill 231 conforms to the most current Uniform Unclaimed Property Act." RACHEL LEWIS, Unclaimed Property Administrator, Division of Treasury, Department of Revenue, testified this legislation would shorten dormancy periods for unclaimed property. This, she informed, would provide the State the opportunity to locate owners of unclaimed property quicker, and would allow companies that hold "uncashed" checks and banks with inactive accounts to "clean those off their books" in a timely manner. She stated that holding unclaimed property creates a liability for companies and banks and that the State would become the active custodian for these assets. She also noted that this legislation would allow assets to become the property of the State sooner to the benefit of all residents. She explained that these funds could be used for schools, road projects and other programs until the owner submits a claim for the assets. Co-Chair Wilken amendment explanations Amendment #2: This amendment changes the language in Section 5 on page 3, lines 14 - 30 to read as follows. Sec. 5. AS 34.45 is amended by adding a new section to read: Sec. 34.45.175. Certain property distributed in insurance company reorganizations. (a) The following property distributable in the course of a demutualization or related reorganization of an insurance company is deemed abandoned two years after the date of demutualization or reorganization as follows: (1) money that remains unclaimed and the owner has not otherwise communicated with the holder or its agent regarding the property as evidenced by a memorandum or other record on file with the holder or its agent; (2) stock or other equity interest if (A) the instruments or statements reflecting the distribution are either mailed to the owner and returned by the post office as undeliverable, or not mailed to the owner because of an address on the books and records of the holder that is known to be incorrect; and (B) the owner has not otherwise communicated with the holder or its agent regarding the property as evidenced by a memorandum or other record on file with the holder or its agent. (b) Property that is not subject to (a) of this section is reportable as otherwise provided in AS 34.45.110 - 34.45.780. Co-Chair Wilken moved for adoption and objected for an explanation. Ms. Lewis noted that the legislation contains a definition of demutualization that "did not fit the stylistic needs of Alaska statutes." This amendment, she stated was drafted by the Department of Law to better conform the definition to Alaska statutes. Co-Chair Wilken removed his objection and the amendment was ADOPTED without objection. Amendment #3: This amendment inserts two new bill sections on page 8, following line 14 to read as follows. Sec. 14. AS 34.45.320(d) is amended to read: (d) the holder of an equity [OWNERSHIP] interest under AS 34.45.200 shall deliver a duplicate certificate, or other evidence of ownership if the holder does not issue certificates of ownership, to the department. Upon delivery of a duplicate certificate to the department, the holder and a transfer agent, registrar, or other person acting for or on behalf of a holder in executing or delivering the duplicate certificate is relieved of all liability, in accordance with the provisions of AS 34.45.330 to every person, including a person acquiring the original certificate or the duplicate of the certificate issued to the department, for loss or damage resulting to a person by the issuance and delivery to the department of the duplicate certificate. Sec. 15. AS 34.45.330(c) is amended to read: (c) A holder who has delivered property [, INCLUDING A CERTIFICATE OF AN OWNERSHIP INTEREST IN A BUSINESS ASSOCIATION,] other than money to the department under AS 34.45.110 - 34.45.430 [,] may reclaim the property if it is still in the possession of the department, without payment of a fee or other charge, upon filing proof that the owner has claimed the property from the holder. New Text Underlined [DELETED TEXT BRACKETED] Co-Chair Wilken moved for adoption and objected for an explanation. Ms. Lewis explained this amendment reflects recommendations from the Division of Legal and Research Services to address grammar and punctuation. Co-Chair Wilken removed his objection. Co-Chair Green asked if this amendment would insert new language into the bill. Ms. Lewis replied that the Department of Law recommended against utilizing "ownership" and "equity" in the same sentence and this amendment therefore delineates the two words. Co-Chair Wilken noted this amendment was submitted at the request of the Division of Legal and Research Services. Without objection the amendment was ADOPTED. Co-Chair Green offered a motion to report SB 231, as amended from Committee with individual recommendations and accompanying fiscal note. There was no objection and CS SB 231 (FIN) MOVED from Committee with fiscal note #2 for $60,000 from the Department of Revenue.