Bill Text: NH SB134 | 2015 | Regular Session | Introduced
Bill Title: Relative to the escheat of United States savings bonds.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2015-06-16 - Signed by the Governor on 06/12/2015; Chapter 0152; Effective 08/11/2015 [SB134 Detail]
Download: New_Hampshire-2015-SB134-Introduced.html
SB 134-FN - AS INTRODUCED
2015 SESSION
15-0968
08/03
SENATE BILL 134-FN
AN ACT relative to the escheat of United States savings bonds.
SPONSORS: Sen. Feltes, Dist 15
This bill specifies the conditions under which unclaimed United States savings bonds escheat to the state of New Hampshire.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
15-0968
08/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fifteen
AN ACT relative to the escheat of United States savings bonds.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Unclaimed United States Savings Bonds. Amend RSA 471-C by inserting after section 43 the following new section:
Unclaimed United States Savings Bonds
471-C:44 Unclaimed United States Savings Bonds
I. In this section, “United States savings bond” means property, tangible or intangible, in the form of a savings bond issued by the United States treasury whether in paper form, electronic, or paperless form, along with all proceeds thereof.
II. Notwithstanding any other provision of law, United States savings bonds held or owing in this state by any person, or issued or owed in the course of a holder’s business, or by a state or other government, governmental subdivision, agency, or instrumentality, and all proceeds thereof, shall be presumed abandoned and unclaimed in this state if:
(a) The last known address of the owner of the United States savings bond is in New Hampshire; and
(b) The United States savings bond has remained unclaimed and unredeemed for 5 years after final maturity.
III. United States savings bonds which are presumed abandoned and unclaimed under paragraph II, including bonds in the possession of the administrator, and those lost, stolen, or destroyed bonds registered to persons with last known addresses in the state, shall escheat to the state of New Hampshire one year after such bonds are presumed abandoned, and all property rights and legal title to and ownership of the United States savings bonds or proceeds from the bonds, including all rights, powers, and privileges of survivorship of any owner, co-owner, or beneficiary, shall vest solely in the state of New Hampshire according to the procedure set forth in paragraphs IV and IX.
IV. Within 180 days after the one year prescribed in paragraph III, if no claim has been filed with the administrator for such United States savings bonds, the administrator may commence a civil action in the Merrimack County superior court, or in any other court of competent jurisdiction, for a determination that such United States savings bonds shall escheat to the state of New Hampshire. The administrator may postpone the bringing of such action until sufficient United States savings bonds have accumulated in the administrator’s custody to justify the expense of such proceedings.
V. The administrator shall make service by publication of the civil action in accordance with RSA 471-C:20.
VI. Before service by publication as required by paragraph V of this section can be made, the administrator shall file with the court an affidavit or a declaration stating all of the following facts that apply:
(a) The residences of all named person or persons sought to be served if known and the names of all persons whose residences are unknown after reasonable effort to ascertain them and the specific efforts made to ascertain their residences.
(b) The affiant or declarant has made a reasonable but unsuccessful effort to ascertain the names and residences of any person or persons sought to be served as unknown parties and the specific efforts made to ascertain the names and residences.
(c) The affiant or declarant seeking service by publication is unable to obtain service of summons on the person or persons in this state.
(d) The affiant or declarant seeking service by publication sent notice by certified mail to the last known address in New Hampshire of the person or persons of their ability to make a claim.
VII. If no person files a claim with the administrator or appears at the court hearing to substantiate a claim or where the court determines that a claimant is not entitled to the property claimed by such claimant, then the court, if satisfied by evidence that the administrator has substantially complied with the laws of the state of New Hampshire, shall enter a judgment that the subject United States savings bonds, registered to persons with last known addresses in the state, have escheated to the state of New Hampshire, and all property rights and legal title to and ownership of such United States savings bonds or proceeds from such bonds, including all rights, powers, and privileges of survivorship of any owner, co-owner or beneficiary, shall vest in the state of New Hampshire.
VIII. The administrator shall redeem such United States savings bonds escheated to the state of New Hampshire and when the proceeds which have escheated have been recovered by the administrator, it shall first pay all costs incident to the collection and recovery of such proceeds from the redemption of the United States savings bonds and shall thereafter promptly deposit the remaining balance of such proceeds to the state general fund, to be distributed in accordance with law.
IX. Any person making a claim for the United States savings bonds which have escheated to the state of New Hampshire under this section, or for the proceeds from such bonds which have escheated to the state of New Hampshire, may file a claim with the administrator. Upon providing sufficient proof of the validity of such person’s claim, the administrator may pay such claim less any expenses and costs which shall have been incurred by the state in securing full title and ownership of such property by escheat. If payment has been made to any claimant, no action thereafter shall be maintained by any other claimant against the state or any officer thereof, for or on account of such funds.
2 Effective Date. This act shall take effect 60 days after its passage.
LBAO
15-0968
02/03/15
SB 134-FN - FISCAL NOTE
AN ACT relative to the escheat of United States savings bonds.
FISCAL IMPACT:
The Treasury Department states this bill, as introduced, may increase state revenue and expenditures by an indeterminable amount in FY 2016 and each year thereafter. There will be no impact on county and local revenue or expenditures.
The Office of Legislative Budget Assistant is awaiting information from the Judicial Branch relative to the potential fiscal impact of this bill. The Branch was contacted on 01/07/15 to provide the information.
The Treasury Department states this bill requires the United States Treasury to transfer all rights and legal title to ownership of United States savings bonds to the State of New Hampshire in those instances where the last known address of the owner is in New Hampshire, and the bonds have remained unclaimed and unredeemed for 5 years after their maturity date. Further, in instances where the state’s unclaimed property administrator has custody of a fully matured bond, and 5 years have passed since the bond reached full maturity, the United States Treasury would transfer all rights and legal title to ownership of the United States savings bonds to the state. The Department states this bill may increase state revenue and expenditures by an indeterminable amount. However, the Department reports that the United States Treasury has recognized a state’s claim to the proceeds of the bonds in their possession in only one instance, while at the same time arguing that the same state had no right to claim proceeds for any other bonds not in the state’s possession, where the state’s claim was based solely on the premise that the address of the bond owner was in that state. Further, the Department indicates that a recent federal court precedent, issued by the United States Court of Appeals for the Third Circuit (Treasurer of New Jersey v. U.S. Treasury), determined that the states, as a matter of intergovernmental immunity, cannot dictate to the federal government how it should conduct its fiscal affairs.
