Bill Text: PA HB643 | 2011-2012 | Regular Session | Amended

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Bill Title: Further providing for property held by financial institutions, for property held by insurers, for property held by utilities, for property held by business associations, for property held by fiduciaries, for property held by courts and public officers and agencies and for miscellaneous property held for or owing to another.

Sponsorship: Partisan Bill (Democrat 12)

Status: (Introduced - Dead) 2011-03-17 - Corrective Reprint, Printer's No. 1167 [HB643 Detail]

Download: Pennsylvania-2011-HB643-Amended.html

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CORRECTIVE REPRINT
PRIOR PRINTER'S NO. 644 PRINTER'S NO. 1167
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 643 Session of2011
INTRODUCED BY DeLUCA, BISHOP, CALTAGIRONE, M. O'BRIEN, COHEN, D. COSTA, GIBBONS, KOTIK, JOSEPHS, YOUNGBLOOD, KAVULICH AND DAVIS, FEBRUARY 14, 2011
REFERRED TO COMMITTEE ON APPROPRIATIONS, FEBRUARY 14, 2011
AN ACT
Amending the act of April 9, 1929 (P.L.343, No.176), entitled,
as amended, "An act relating to the finances of the State
government; providing for the settlement, assessment,
collection, and lien of taxes, bonus, and all other accounts
due the Commonwealth, the collection and recovery of fees and
other money or property due or belonging to the Commonwealth,
or any agency thereof, including escheated property and the
proceeds of its sale, the custody and disbursement or other
disposition of funds and securities belonging to or in the
possession of the Commonwealth, and the settlement of claims
against the Commonwealth, the resettlement of accounts and
appeals to the courts, refunds of moneys erroneously paid to
the Commonwealth, auditing the accounts of the Commonwealth
and all agencies thereof, of all public officers collecting
moneys payable to the Commonwealth, or any agency thereof,
and all receipts of appropriations from the Commonwealth,
authorizing the Commonwealth to issue tax anticipation notes
to defray current expenses, implementing the provisions of
section 7(a) of Article VIII of the Constitution of
Pennsylvania authorizing and restricting the incurring of
certain debt and imposing penalties; affecting every
department, board, commission, and officer of the State
government, every political subdivision of the State, and
certain officers of such subdivisions, every person,
association, and corporation required to pay, assess, or
collect taxes, or to make returns or reports under the laws
imposing taxes for State purposes, or to pay license fees or
other moneys to the Commonwealth, or any agency thereof,
every State depository and every debtor or creditor of the
Commonwealth," further providing for property held by
financial institutions, for property held by insurers, for
property held by utilities, for property held by business
associations, for property held by fiduciaries, for property
held by courts and public officers and agencies and for
miscellaneous property held for or owing to another.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1301.3 of the act of April 9, 1929
(P.L.343, No.176), known as The Fiscal Code, amended June 29,
2002 (P.L.614, No.91) and December 23, 2003 (P.L.243, No.45), is
amended to read:
Section 1301.3. Property Held by Financial Institutions.--
The following property held or owing by a financial institution
is presumed abandoned and unclaimed:
1. Any demand, saving or matured time deposit in a financial
institution, or any funds paid toward the purchase of shares or
other interest in a savings association, savings and loan or
building and loan association, excluding any charges that may
lawfully be withheld, unless within the preceding [five (5)]
four (4) years the owner has:
(i) Increased the amount of the deposit, shares or claim,
otherwise than by the crediting of accrued interest, or
decreased it, or presented to the holder evidence of the
deposit, shares or claim; or
(ii) Corresponded in writing with the holder concerning the
deposit, shares or claim; or
(iii) Otherwise indicated an interest in the deposit, shares
or claim as evidenced by a writing on file with the holder; or
(iv) Received tax reports or regular statements of the
deposits, shares or claim by certified mail or other method of
communication that will provide the financial institution with a
record that such report or statement was transmitted and
received; or
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(v) Owned other property held by the financial institution
to which subclause (i), (ii), (iii) or (iv) applies.
2. A deposit under clause 1 shall include any interest or
dividend which the financial institution would pay to the owner
upon claim therefor. The charges which may be excluded hereunder
shall not include any charge due to inactivity imposed, directly
or indirectly, after December 31, 1981 unless there is a valid
and enforceable written contract between the financial
institution and the owner of the deposit pursuant to which the
financial institution may impose said charge.
3. Any sum payable on checks or on written instruments
including, but not limited to, drafts, money orders and
travelers checks, on which a financial institution is directly
liable, and (i) which have been outstanding for more than [five
(5)] four (4) years, or in the case of travelers checks,
[fifteen (15)] ten (10) years, [or in the case of money orders,
six (6) years in calendar year 2003 and seven (7) years in
calendar year 2004 and thereafter,] from the date payable or
from the date of issuance if payable on demand; and (ii) the
owner of which has not written to the financial institution
concerning it, nor otherwise indicated an interest as evidenced
by a writing on file with the financial institution.
4. Any funds or other personal property, tangible or
intangible, removed from a safe deposit box or any other
safekeeping repository in the Commonwealth on which the lease or
rental period has expired due to nonpayment of rental charges or
other reason, or any surplus amounts arising from the sale
thereof pursuant to law, if the same has not been claimed by the
owner for more than [five (5)] four (4) years from the date on
which the rental period expired.
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5. The following deposits described in clause 1 shall be
excluded from the presumption of being abandoned and unclaimed
only while the conditions described below are in effect:
(i) Deposits during any period when withdrawals may be made
only upon an order of a court of competent jurisdiction.
(ii) Deposits established under 20 Pa.C.S. Ch. 53 (relating
to Pennsylvania Uniform Transfers to Minors Act) or similar law
concerning transfers to minors while the custodianship has not
been terminated.
(iii) Burial reserve accounts and similar deposits
established under written agreements to provide for the funeral
and/or burial expenses of a person while the person is still
alive.
Section 2. Section 1301.4 of the act, amended December 23,
2003 (P.L.243, No.45), is amended to read:
Section 1301.4. Property Held by Insurers.--(a) In the case
of life insurance, the following property held or owing by an
insurer is presumed abandoned and unclaimed:
1. Any moneys held or owing by an insurer as established by
its records under any contract of annuity or policy of life
insurance including premiums returnable or dividends payable,
unclaimed and unpaid for more than [five (5)] four (4) years
after the moneys have or shall become due and payable under the
provisions of such contract of annuity or policy of insurance. A
life insurance policy not matured by actual proof of the death
of the insured is deemed to be matured and the proceeds thereof
are deemed to be due and payable if such policy was in force
when the insured attained the limiting age under the mortality
table on which the reserve is based, unless the person appearing
entitled thereto has within the preceding [five (5)] four (4)
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years, (i) assigned, readjusted or paid premiums on the policy,
or subjected the policy to loan, or (ii) corresponded in writing
with the insurer concerning the policy.
2. If a person other than the insured or annuitant is
entitled to the funds and no address of such person is known to
the insurer or if it is not definite and certain from the
records of the insurer what person is entitled to the funds, it
is presumed that the last known address of the person entitled
to the funds is the same as the last known address of the
insured or annuitant according to the records of the insurer.
3. Moneys otherwise payable according to the records of the
insurer are deemed due and payable although the policy or
contract has not been surrendered as required.
4. Property distributable in the course of a demutualization
or related reorganization of an insurance company is deemed
abandoned two (2) years after the date of the demutualization or
reorganization if 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 a known bad address on the books and records of the holder.
(b) In the case of insurance other than life insurance, the
following property held or owing by an insurer is presumed
abandoned and unclaimed:
1. Any moneys held or owing by an insurer as established by
its records under any contract of insurance other than annuity
or life insurance, including premiums or deposits returnable or
dividends payable to policy or contract holders or other persons
entitled thereto, unclaimed and unpaid for more than [five (5)]
four (4) years after the moneys have or shall become due and
payable under the provisions of such contracts of insurance.
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2. If a person other than the insured, the principal or the
claimant is entitled to the funds and no address of such person
is known to the insurer or if it is not definite and certain
from the records of the insurer what person is entitled to the
funds, it is presumed that the last known address of the person
entitled to the funds is the same as the last known address of
the insured, the principal or the claimant according to the
records of the insurer.
Section 3. Section 1301.5 of the act, amended June 29, 2002
(P.L.614, No.91), is amended to read:
Section 1301.5. Property Held by Utilities.--The following
funds held or owing by any utility are presumed abandoned and
unclaimed:
1. Any customer advance, toll, deposit or collateral
security or any other property held by any utility if under the
terms of an agreement the advance, toll, deposit, collateral
security or other property is due to or demandable by the owner
and has remained unclaimed for [five (5)] four (4) years or more
from the date when it first became due to or demandable by the
owner under the agreement.
2. Any sum which a utility has been ordered to refund, less
any lawful deductions, and which has remained unclaimed by the
person appearing on the records of the utility entitled thereto
for two (2) years or more after the date it became payable in
accordance with the final order providing for the refund.
Section 4. Section 1301.6 of the act, amended June 29, 2002
(P.L.614, No.91) and November 9, 2006 (P.L.1335, No.138), is
amended to read:
Section 1301.6. Property Held by Business Associations.--The
following property held or owing by a business association is
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presumed abandoned and unclaimed:
1. The consideration paid for a gift certificate or gift
card which has remained unredeemed for two (2) years or more
after its redemption period has expired or for [five (5)] four
(4) years or more from the date of issuance if no redemption
period is specified. The provisions of this clause shall not
apply to a qualified gift certificate.
2. Any certificate of stock or participating right in a
business association, for which a certificate has been issued or
is issuable but has not been delivered, whenever the owner
thereof has not claimed such property, or corresponded in
writing with the business association concerning it, within
[five (5)] four (4) years after the date prescribed for delivery
of the property to the owner.
3. Any sum due as a dividend, profit, distribution, payment
or distributive share of principal held or owing by a business
association, whenever the owner has not claimed such sum or
corresponded in writing with the business association concerning
it within [five (5)] four (4) years after the date prescribed
for payment or delivery.
4. Any sum due as principal or interest on the business
association's bonds or debentures, or coupons attached thereto,
whenever the owner has not claimed such sum or corresponded in
writing with the business association concerning it within [five
(5)] four (4) years after the date prescribed for payment.
5. Any sum or certificate or participating right due by a
cooperative to a participating patron, whenever the owner has
not claimed such property, or corresponded with the cooperative
concerning the same within [five (5)] four (4) years after the
date prescribed for payment or delivery.
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Section 5. Section 1301.8 of the act, amended June 29, 2002
(P.L.614, No.91), is amended to read:
Section 1301.8. Property Held by Fiduciaries.--The following
property held by fiduciaries is presumed abandoned and
unclaimed:
All property held in a fiduciary capacity for the benefit of
another person, unless the owner within [five (5)] four (4)
years after it has or shall become payable or distributable has
increased or decreased the principal, accepted payment of
principal or income, corresponded in writing concerning the
property or otherwise indicated an interest therein as evidenced
by a writing on file with the fiduciary.
Section 6. Clause 1 of section 1301.9 of the act, amended
November 9, 2006 (P.L.1335, No.138), is amended to read:
Section 1301.9. Property Held by Courts and Public Officers
and Agencies.--The following property is presumed abandoned and
unclaimed:
1. Except as provided in clauses 2 and 2.1 or clause 6, all
property held for the owner by any court, public corporation,
public authority or instrumentality of the United States, the
Commonwealth, or any other state, or by a public officer or
political subdivision thereof, unclaimed by the owner for more
than [five (5)] four (4) years from the date it first became
demandable or distributable.
* * *
Section 7. Section 1301.10 of the act, amended December 23,
2003 (P.L.243, No.45), is amended to read:
Section 1301.10. Miscellaneous Property Held for or Owing to
Another.--The following property, held or owing to any owner, is
presumed abandoned and unclaimed:
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1. All property, not otherwise covered by this article, that
is admitted in writing by the holder and adjudicated to be due,
that is held or owing in the ordinary course of the holder's
business, and that has remained unclaimed by the owner for more
than [five (5)] four (4) years after it became payable or
distributable is presumed abandoned and unclaimed except for
clause 2.
2. Wages or other compensation for personal services that
have remained unclaimed by the owner for more than two (2) years
after the wages or other compensation for personal services
become payable or are distributed are presumed abandoned and
unclaimed.
Section 8. All additional funds received under Article
XIII.1, including the proceeds from the sale of property under
section 1301.17 of the act, from July 1, 2009, to June 30, 2010,
as a result of the amendment of sections 1301.3, 1301.4, 1301.5,
1301.6, 1301.8, 1301.9 and 1301.10 of the act shall be deposited
into the Tobacco Settlement Fund established under the act of
June 26, 2001 (P.L.755, No.77), known as the Tobacco Settlement
Act, and shall be used only for the purposes set forth under
Chapter 13 of the Tobacco Settlement Act.
Section 9. This act shall take effect immediately.
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