Bill Text: AZ HB2856 | 2020 | Fifty-fourth Legislature 2nd Regular | Engrossed
Bill Title: Unclaimed property locators; registration
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2020-03-11 - Senate FIN Committee action: Discussed and Held, voting: (0-0-0-0) [HB2856 Detail]
Download: Arizona-2020-HB2856-Engrossed.html
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House Engrossed |
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State of Arizona House of Representatives Fifty-fourth Legislature Second Regular Session 2020
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HOUSE BILL 2856 |
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AN ACT
amending sections 44‑313 and 44‑327, Arizona Revised Statutes; amending title 44, chapter 3, article 1, Arizona Revised Statutes, by adding section 44‑327.01; relating to unclaimed property.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 44-313, Arizona Revised Statutes, is amended to read:
44-313. Deposit of monies
A. Except as otherwise provided in this section or section 44‑314 or 44‑327.01, the department shall deposit, pursuant to sections 35‑146 and 35‑147, in the state general fund all monies received pursuant to this chapter, including the proceeds from the sale of abandoned property pursuant to section 44‑312, except that:
1. The first two million dollars $2,000,000 of the monies shall be deposited each fiscal year in the seriously mentally ill housing trust fund established by section 41‑3955.01.
2. The second two million five hundred thousand dollars $2,500,000 of the monies shall be deposited in the housing trust fund established by section 41‑3955.
3. The next twenty‑four million five hundred thousand dollars $24,500,000 of the monies shall be deposited each fiscal year in the department of revenue administrative fund established by section 42‑1116.01.
B. The department shall deposit monies from unclaimed shares and dividends of any corporation incorporated under the laws of this state in the permanent state school fund pursuant to article XI, section 8, Constitution of Arizona.
C. The department shall deposit monies from unclaimed victim restitution payments in the victim compensation and assistance fund established by section 41‑2407 for the purpose of establishing, maintaining and supporting programs that compensate and assist victims of crime.
D. The department shall retain in a separate trust fund at least one hundred thousand dollars $100,000 from which the department shall pay claims.
E. Before making the deposit, the department shall record the name and last known address of each person who appears from the holders' reports to be entitled to the property and the name and last known address of each insured person or annuitant and beneficiary. The department shall also record the policy or contract number of each policy or contract of an insurance company that is listed in the report, the name of the company and the amount due. The department shall make the record available for public inspection during reasonable business hours.
Sec. 2. Section 44-327, Arizona Revised Statutes, is amended to read:
44-327. Agreement to locate property
A. The following are void and unenforceable:
1. An agreement entered into by an owner with another person if the primary purpose of that agreement is to locate, deliver, recover or assist in the recovery of property that is presumed abandoned, if the agreement was entered into during the period commencing on the date the property was presumed abandoned and extending to a time that is twenty‑four months after the date that the property is paid or delivered to the department. This paragraph does not apply to an owner's agreement with an attorney to file a claim relating to identified property or to contest the department's denial of a claim. is enforceable if all of the following apply:
1. the agreement is in writing in at least ten‑point type.
2. The agreement lists the unclaimed property account numbers being claimed.
3. The agreement describes the services to be performed.
4. The agreement is signed by the claimant.
5. The agreement states the value of the property before and after the fee or other compensation has been deducted.
B. The fee or payment agreed on may not be more than thirty percent of the value of the recoverable property that is reported to the department. Fee restrictions do not apply to recovery of accounts that require judicial determination of ownership to establish entitlement.
2. C. A provision in an agreement that requires an owner a claimant to pay compensation that includes a portion of mineral proceeds that are not presumed abandoned or the underlying minerals, if the primary purpose of the agreement is to locate, deliver, recover or assist in the recovery of mineral proceeds that are presumed abandoned, is void.
B. If an owner enters into an agreement that is not void pursuant to this section and the primary purpose of that agreement is to locate, deliver, recover or assist in the recovery of property reported to the department, the agreement is:
1. Enforceable if the agreement is in writing, clearly states the nature of the property and the services to be performed, is signed by the apparent owner and states the value of the property before and after the fee or other compensation has been deducted. The fee or payment agreed on shall not be more than thirty per cent of the value of the recoverable property reported to the department.
2. D. An agreement is unenforceable except by the owner claimant if the agreement provides for compensation that is more than thirty per cent percent of the value of the recoverable property reported to the department.
C. E. An owner A claimant who has agreed to pay compensation that is more than thirty per cent percent of the value of the recoverable property reported to the department, or the department on behalf of the owner claimant, may maintain an action to reduce the compensation. The court may award reasonable attorney fees to an owner who prevails in the action. This section does not prohibit an owner a claimant from asserting that an agreement is invalid on grounds other than compensation.
Sec. 3. Title 44, chapter 3, article 1, Arizona Revised Statutes, is amended by adding section 44-327.01, to read:
44-327.01. Unclaimed property account information; locators; registration; fees; fund
A. on WRITTEN REQUEST, THE DEPARTMENT SHALL PROVIDE ALL UNCLAIMED PROPerTY ACCOUNT INFORMATION for ALL UNCLAIMED ACCOUNTS TO A LOCATOR that is registered pursuant to this section. The department may not provide the information to a locator that is not registered pursuant to this section. THE DEPARTMENT may charge a fee for each request in an amount to be determined by the department. THE DEPARtMENT SHALL PROVIDE on its website THE UNCLAIMED PROPERTY ACCOUNT INFORMATION IN A SEARCHABLE ELECTRONIC OR DIGITAL FORMAT. THE UNCLAIMED PROPerTY ACCOUNT INFORMATION SHALL INCLUDE all of THE FOLLOWING:
1. THE NAME OF THE APPARENT OWNER.
2. THE COMPLETE LAST KNOWN ADDRESS OF THE APPARENT OWNER AS REPORTED BY THE HOLDER.
3. THE RELATIONSHIP CODE, IF ANY.
4. THE TYPE OF PROPERTY.
5. IF the property is not cash, THE CASH VALUE OF THE PROPERTY.
6. If the property is SECURITIES OR MUTUAL FUND SHARES, THE NUMBER OF SHARES OR ITEMS and the EXCHANGE TICKER SYMBOL OR FUND NAME, IF REPORTED.
7. THE YEAR that THE PROPERTY WAS REPORTED TO THE DEPARTMENT.
8. THE NAME AND CONTACT INFORMATION OF THE HOLDER.
9. A GENERAL DESCRIPTION OF THE SAFE DEPOSIT BOX CONTENTS AND THE LIQUIDATION AMOUNT, IF APPLICABLE.
B. A locator may REGISTER WITH THE DEPARTMENT IN A FORM AND MANNER DETERMINED BY THE DEPARTMENT AND PAY A FEE TO THE DEPARTMENT in an amount to be determined by the department. On the registration application, a loCATOR shall PROVIDE THE locator's PRIMARY BUSINESS ADDRESS AND TELEPHONE NUMBER AND THE NAME, TELEPHONE NUMBER AND EMAIL ADDRESS OF THE INDIVIDUAL WHO WILL BE THE PRIMARY POINT OF CONTACT WITH THE DEPARTMENT. A LOCATOR IS INELIGIBLE FOR REGISTRATION IF, WITHIN THE IMMEDIATELY PRECEDING TEN‑YEAR period any of the following was convicted OF A FELONY INVOLVING DISHONESTY, DECEIT, FRAUD OR A BREACH OF FIDUCIARY DUTY:
1. THE locator, if an individual.
2. A CURRENT OFFICER OR OWNER OF the locator if an entity.
3. A CURRENT EMPLOYEE OF THE INDIVIDUAL locator OR entity locator that PERFORMS OR DIRECTS lOCATOR SERVICES.
C. Locator registration is valid for four years. THE LOCATOR may RENEW ITS REGISTRATION in a manner that is prescribed by the department. THe department shall determine the renewal registration fee. The initial registration and renewal registration fees collected pursuant to this section shall be deposited in the locator registration fund established by subsection F of this section.
D. A LOCATOR that RECEIVES UNCLAIMED PROPerTY ACCOUNT INFORMATION FROM THE DEPARTMENT UNDER this section may NOT DISTRIBUTE THAT INFORMATION TO OTHER LOCATORS OR PERSONs, OTHER THAN THE OWNER, FOR COMPENSATION.
E. IF AN OWNER HAS ENTERED INTO A WRITTEN AGREEMENT THAT AUTHORIZES A registered LOCATOR TO CLAIM THE UNCLAIMED PROPERTY ON THE OWNER'S BEHALF OR IF THE OWNER HAS SOLD THE RIGHT TO CLAIM THE UNCLAIMED PROPERTY TO A LOCATOR, THE DEPARTMENT SHALL distribute THE PROPerTY OR MONies IN ACCORDANCE WITH THAT WRITTEN AGREEMENT. THE WRITTEN AGREEMENT MUST BE EXECUTED BY THE OWNER AND MUST BE FILED WITH THE DEPARTMENT.
F. The locator registration fund is established consisting of monies received from locator registration and renewal fees pursuant to this section. The department shall administer the fund. The monies in the fund shall BE USED TO REGISTER AND MONITOR LOCATORS UNDER this chapter. Monies in the fund are CONTINUOUSLY APPROPRIATED.
