Bill Text: IA HSB33 | 2023-2024 | 90th General Assembly | Introduced


Bill Title: A bill for an act relating to communication methods regarding the disposition of unclaimed property and including applicability provisions.(See HF 247.)

Spectrum: Committee Bill

Status: (Introduced) 2023-02-09 - Committee report approving bill, renumbered as HF 247. [HSB33 Detail]

Download: Iowa-2023-HSB33-Introduced.html
House Study Bill 33 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON LUNDGREN) A BILL FOR An Act relating to communication methods regarding the 1 disposition of unclaimed property and including 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1031YC (3) 90 es/rn
H.F. _____ Section 1. Section 556.1, Code 2023, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 3A. “Electronic messaging” means 3 communication conducted through electronic mail, text message, 4 or other electronic means, including but not limited to an 5 online banking website application. 6 Sec. 2. Section 556.2, subsection 1, paragraph b, Code 2023, 7 is amended to read as follows: 8 b. Corresponded in writing or through electronic messaging 9 with the banking organization concerning the deposit. 10 Sec. 3. Section 556.2, subsection 1, paragraph d, 11 subparagraphs (1) and (2), Code 2023, are amended to read as 12 follows: 13 (1) Communicated in writing or through electronic messaging 14 with the bank. 15 (2) Otherwise indicated an interest as evidenced by a 16 memorandum or other record on file prepared by an employee of 17 the bank and if the bank communicates in writing or through 18 electronic messaging with the owner with regard to the property 19 that would otherwise be abandoned under this subsection at the 20 physical address , electronic mail address, or phone number on 21 file with the banking organization to which communications 22 regarding the other relationship are regularly sent , including 23 electronic messaging . 24 Sec. 4. Section 556.2, subsection 1, paragraph e, Code 2023, 25 is amended to read as follows: 26 e. Been sent any written correspondence, notice, or 27 information by first class mail regarding the deposit by 28 the banking organization on or after July 1, 1992, if the 29 correspondence, notice, or information requests an address 30 correction on the face of the envelope, and is not returned 31 to the bank organization for nondelivery, and if the bank 32 organization maintains a record of all returned mail , or 33 been sent any correspondence, notice, or information through 34 electronic messaging, and is not returned electronically to 35 -1- LSB 1031YC (3) 90 es/rn 1/ 5
H.F. _____ the banking organization for nondelivery, and if the bank 1 organization maintains a record of all returned electronic 2 messaging . 3 Sec. 5. Section 556.2, subsection 2, paragraph b, Code 2023, 4 is amended to read as follows: 5 b. Corresponded in writing or through electronic messaging 6 with the financial organization concerning the funds or 7 deposit. 8 Sec. 6. Section 556.2, subsection 2, paragraph d, 9 subparagraphs (1) and (2), Code 2023, are amended to read as 10 follows: 11 (1) Communicated in writing or through electronic messaging 12 with the financial organization. 13 (2) Otherwise indicated an interest as evidenced by a 14 memorandum or other record on file prepared by an employee of 15 the financial organization and if the financial organization 16 communicates in writing or through electronic messaging with 17 the owner with regard to the property that would otherwise 18 be abandoned under this subsection at the physical address 19 or electronic mail address or phone number on file with the 20 financial organization to which communications regarding the 21 other relationship are regularly sent , or messages sent through 22 other electronic means . 23 Sec. 7. Section 556.2, subsection 2, paragraph e, Code 2023, 24 is amended to read as follows: 25 e. Been sent any written correspondence, notice, or 26 information by first class mail regarding the funds or deposits 27 by the financial organization on or after July 1, 1992, if the 28 correspondence, notice, or information requests an address 29 correction on the face of the envelope, and is not returned 30 to the financial organization for nondelivery, and if the 31 financial organization maintains a record of all returned mail , 32 or been sent any correspondence, notice, or information through 33 electronic messaging, and is not returned electronically to the 34 financial organization for nondelivery, and if the financial 35 -2- LSB 1031YC (3) 90 es/rn 2/ 5
H.F. _____ organization maintains a record of all returned electronic 1 messaging . 2 Sec. 8. Section 556.2, subsection 3, Code 2023, is amended 3 to read as follows: 4 3. Any property described in subsections 1 and 2 which is 5 automatically renewable is matured for purposes of subsections 6 1 and 2 upon the expiration of its initial time period, but in 7 the case of any renewal to which the owner consents at or about 8 the time of renewal by communicating in writing or through 9 electronic messaging with the banking or financial organization 10 or otherwise indicating consent as evidenced by a memorandum 11 or other record on file prepared by an employee of the 12 organization, the property is matured upon the expiration of 13 the last time provided for which consent was given. However, 14 consent to renewal is deemed to have been given if the owner is 15 sent written notice of the renewal by first class mail which 16 requests an address correction on the face of the envelope, 17 the notice is not returned for nondelivery, and the banking 18 or financial organization maintains a record of all returned 19 mail , or if the owner is sent written notice of the renewal 20 through electronic messaging and the banking or financial 21 organization maintains a record of all returned electronic 22 messaging and the notice is not returned to the banking or 23 financial organization . If at the time period for delivery 24 in section 556.13 , a penalty or forfeiture in the payment of 25 interest would result from the delivery of the property, the 26 time period for delivery is extended until the time when no 27 penalty or forfeiture would result. 28 Sec. 9. Section 556.2, subsection 5, paragraphs a and b, 29 Code 2023, are amended to read as follows: 30 a. A banking organization or financial organization shall 31 send to the owner of each account, to which none of the actions 32 specified in subsection 1, paragraphs “a” through “e” or 33 subsection 2, paragraphs “a” through “e” have occurred during 34 the preceding three calendar years, a notice by certified 35 -3- LSB 1031YC (3) 90 es/rn 3/ 5
H.F. _____ mail or through electronic messaging stating in substance the 1 following: 2 According to our records, we have had no contact with you 3 regarding (describe account) for more than three years. Under 4 Iowa law, if there is a period of three years without contact, 5 we may be required to transfer this account to the custody of 6 the treasurer of state of Iowa as unclaimed property. You 7 may prevent this by taking some action, such as a deposit or 8 withdrawal, or by contacting us through electronic messaging, 9 which indicates your interest in this account , or by signing 10 this form and returning it to us. 11 I desire to keep the above account open and active. 12 ......... 13 Your signature 14 b. The notice required under this section shall be mailed 15 sent within thirty days of the lapse of the three-year period 16 in which there is no activity. The cost of the certified mail 17 of the notice required in this section may be deducted from the 18 account by the banking or financial organization. 19 Sec. 10. APPLICABILITY. This Act applies to electronic 20 messaging sent or received on or after the effective date of 21 this Act. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill relates to electronic communication regarding 26 property that is assumed to be abandoned for purposes of 27 property held by a bank, financial institution, or business 28 association. 29 The bill defines “electronic messaging” to mean 30 electronic mail, text messaging, or other electronic means of 31 communication, including an online banking website application. 32 The bill provides that methods of communication between 33 an owner of specified forms of property and a banking or 34 financial organization or by a business association that can, 35 -4- LSB 1031YC (3) 90 es/rn 4/ 5
H.F. _____ if certain circumstances are met, prevent the property from 1 being considered abandoned include electronic messaging along 2 with correspondence in writing. The bill also provides that 3 consent for renewal of previously held property between an 4 owner and a banking or financial organization or a business 5 association can be considered effective if notice was sent by 6 electronic messaging and the notice is not returned to the bank 7 for nondelivery. 8 The bill applies to electronic messaging sent or received on 9 or after the effective date of the bill. 10 -5- LSB 1031YC (3) 90 es/rn 5/ 5
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