House File 454 - Introduced



                                       HOUSE FILE       
                                       BY  COMMITTEE ON COMMERCE

                                       (SUCCESSOR TO HSB 61)

                                       (COMPANION TO LSB 1236SV BY
                                        COMMITTEE ON STATE GOVERNMENT)


    Passed House, Date               Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the disposition of certain unclaimed property.
  2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  3 TLSB 1236HV 82
  4 av/gg/14

PAG LIN



  1  1    Section 1.  Section 22.7, Code 2007, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  58.  The information provided in any
  1  4 report, record, claim, or other document submitted to the
  1  5 treasurer of state pursuant to chapter 556 concerning
  1  6 unclaimed or abandoned property, except the name and last
  1  7 known address of each person appearing to be entitled to
  1  8 unclaimed or abandoned property paid or delivered to the
  1  9 treasurer of state pursuant to that chapter.
  1 10    Sec. 2.  Section 331.427, subsection 1, unnumbered
  1 11 paragraph 1, Code 2007, is amended to read as follows:
  1 12    Except as otherwise provided by state law, county revenues
  1 13 from taxes and other sources for general county services shall
  1 14 be credited to the general fund of the county, including
  1 15 revenues received under sections 9I.11, 101A.3, 101A.7,
  1 16 123.36, 123.143, 142B.6, 176A.8, 321.105, 321.152, 321G.7,
  1 17 321I.8, section 331.554, subsection 6, sections 341A.20,
  1 18 364.3, 368.21, 423A.7, 428A.8, 430A.3, 433.15, 434.19, 445.57,
  1 19 453A.35, 458A.21, 483A.12, 533.24, 556B.1, 583.6, 602.8108,
  1 20 904.908, and 906.17, and the following:
  1 21    Sec. 3.  Section 331.554, subsections 6 and 7, Code 2007,
  1 22 are amended to read as follows:
  1 23    6.  The amount of a check, other than a warrant,
  1 24 outstanding for more than one year two years shall be
  1 25 canceled, and removed from the list of outstanding checks,
  1 26 deposited to the account on which the check was written, and
  1 27 credited as unclaimed fees and trusts and is presumed
  1 28 abandoned pursuant to section 556.8.  The treasurer shall
  1 29 maintain a list of the checks for one year after cancellation.
  1 30 A person may claim the amount of the canceled treasurer's
  1 31 check for a period of one year after cancellation upon proper
  1 32 proof of ownership by filing a claim with the county auditor
  1 33 treasurer of state as provided in chapter 556.
  1 34    7.  A warrant or other evidence of the county's
  1 35 indebtedness outstanding for more than one year two years
  2  1 shall be canceled by the auditor and the amount of the warrant
  2  2 shall be credited to the fund upon which the warrant was drawn
  2  3 is presumed abandoned pursuant to section 556.8.  A person may
  2  4 file a claim with the auditor for the amount of the canceled
  2  5 warrant within one year of the date of the cancellation, and
  2  6 upon showing of proper proof that the claim is true and
  2  7 unpaid, the auditor shall issue a warrant drawn upon the fund
  2  8 from which the original canceled warrant was drawn or other
  2  9 evidence of the county's indebtedness by filing a claim with
  2 10 the treasurer of state as provided in chapter 556.  This
  2 11 subsection does not apply to warrants issued upon drainage or
  2 12 levee district funds or any fund upon which the county
  2 13 treasurer has issued a warrant order or stamped a warrant for
  2 14 want of funds.
  2 15    8.  An amount outstanding on a check, warrant, or other
  2 16 evidence of the county's indebtedness that is presumed
  2 17 abandoned as provided in subsection 6 or 7 shall be reported
  2 18 and remitted to the treasurer of state by the county treasurer
  2 19 on or before November 1 of the fiscal year ending on the
  2 20 preceding June 30 that the obligation is presumed abandoned.
  2 21    Sec. 4.  Section 556.8, Code 2007, is amended to read as
  2 22 follows:
  2 23    556.8  PROPERTY HELD BY STATE COURTS AND PUBLIC OFFICERS
  2 24 AND AGENCIES == ABANDONMENT.
  2 25    1.  All intangible personal property held for the owner by
  2 26 any court, public corporation, public authority, agency,
  2 27 instrumentality, employee, or public officer of this state, or
  2 28 the United States, or a political subdivision of the state,
  2 29 another state, or the United States, that has remained
  2 30 unclaimed by the owner for more than two years after becoming
  2 31 payable or distributable is presumed abandoned.
  2 32    2.  Notwithstanding any other provision of state law, an
  2 33 amount outstanding on a check, warrant, or other evidence of
  2 34 indebtedness of a county that has remained unclaimed by the
  2 35 owner for more than two years from the date of issuance or
  3  1 after becoming due and payable as determined by the county
  3  2 treasurer pursuant to section 331.554, is presumed abandoned.
  3  3    Sec. 5.  Section 556.12, subsection 3, Code 2007, is
  3  4 amended to read as follows:
  3  5    3.  The treasurer of state is not required to publish in
  3  6 such notice any item of less than fifty one hundred dollars
  3  7 unless the treasurer deems the publication to be in the public
  3  8 interest.
  3  9    Sec. 6.  Section 556.12, subsection 4, Code 2007, is
  3 10 amended by striking the subsection and inserting in lieu
  3 11 thereof the following:
  3 12    4.  The treasurer of state may mail a notice to each person
  3 13 listed in a report filed by the holder of unclaimed property,
  3 14 at the last known address of that person if the treasurer
  3 15 deems such notice to be in the best interests of that person
  3 16 and has reason to believe that the address submitted by the
  3 17 holder is sufficient to ensure that delivery of such notice
  3 18 will likely occur.
  3 19    Sec. 7.  Section 556.13, subsection 1, Code 2007, is
  3 20 amended to read as follows:
  3 21    1.  Except for property held in a safe deposit box or other
  3 22 safekeeping depository, upon filing the report required by
  3 23 section 556.11, the holder of property presumed abandoned
  3 24 shall pay, deliver, or cause to be paid or delivered to the
  3 25 administrator the property described in the report as
  3 26 unclaimed, but if the property is an automatically renewable
  3 27 deposit, and a penalty or forfeiture in the payment of
  3 28 interest would result, the time for compliance is extended
  3 29 until a penalty or forfeiture would no longer result.
  3 30 Tangible At the direction of the treasurer of state, the
  3 31 holder of tangible property held in a safe deposit box or
  3 32 other safekeeping depository shall not be delivered deliver
  3 33 the property to the treasurer of state until one hundred
  3 34 twenty days at the same time as or after filing the abandoned
  3 35 property report required in section 556.11.
  4  1    Sec. 8.  Section 556.20, Code 2007, is amended to read as
  4  2 follows:
  4  3    556.20  DETERMINATION OF CLAIMS.
  4  4    1.  The state treasurer of state shall consider any claim
  4  5 filed under this chapter and may hold a hearing and receive
  4  6 evidence concerning it the claim.  If a hearing is held, the
  4  7 treasurer shall prepare a finding and a decision in writing on
  4  8 each claim filed, stating the substance of any evidence heard
  4  9 by the treasurer and the reasons for the treasurer's decision.
  4 10 The decision shall be a public record.
  4 11    2.  If the claim is allowed, the state treasurer of state
  4 12 shall make payment forthwith.  The claim shall be paid without
  4 13 deduction for costs of notices or sale or for service charges.
  4 14 The treasurer or an employee thereof shall not be held liable
  4 15 in any action for any claim paid in good faith pursuant to
  4 16 this section.  However, a claimant, attorney in fact, or
  4 17 attorney or any other person representing a claimant to whom
  4 18 such payment is made may be held liable to a person who proves
  4 19 a superior right to the payment.
  4 20    3.  As a condition precedent to payment of any claim filed
  4 21 under this chapter, the treasurer of state may require that
  4 22 the claimant or owner of the unclaimed or abandoned property
  4 23 furnish the treasurer with a surety bond containing terms and
  4 24 provisions acceptable to the treasurer and issued by a
  4 25 corporate surety authorized to do business in this state or
  4 26 with such other form of indemnification and protection that is
  4 27 determined by the treasurer to be acceptable and sufficient to
  4 28 protect the treasurer and the state against any loss,
  4 29 liability, or damage which may arise out of or result from the
  4 30 payment of the claim by the treasurer.  The claimant or owner
  4 31 shall be responsible for all premiums, costs, fees, or other
  4 32 expenses associated with any such surety bond or other form of
  4 33 indemnification and protection required pursuant to this
  4 34 subsection.
  4 35    Sec. 9.  NEW SECTION.  556.24A  PUBLIC RECORDS.
  5  1    1.  The treasurer of state shall maintain a public record
  5  2 of the name and last known address of each person appearing to
  5  3 be entitled to unclaimed or abandoned property paid or
  5  4 delivered to the treasurer pursuant to this chapter.
  5  5    2.  Notwithstanding any other provision of law, any other
  5  6 identifying information set forth in any report, record,
  5  7 claim, or other document submitted to the treasurer of state
  5  8 pursuant to this chapter concerning unclaimed or abandoned
  5  9 property is a confidential record as provided in section 22.7
  5 10 and shall be made available for public examination or copying
  5 11 only in the discretion of the treasurer.
  5 12                           EXPLANATION
  5 13    This bill relates to the disposition of certain unclaimed
  5 14 property that is presumed abandoned by the treasurer of state.
  5 15    Code section 331.427 is amended to correspond to changes in
  5 16 Code section 331.554 requiring the amounts of checks
  5 17 evidencing a county's indebtedness, that are presumed
  5 18 abandoned pursuant to Code chapter 556, to be remitted to the
  5 19 treasurer of state instead of being retained in the county's
  5 20 general fund.
  5 21    Code section 331.554 is amended to provide that when a
  5 22 check, warrant, or other evidence of a county's indebtedness
  5 23 remains outstanding for more than two years, it shall be
  5 24 canceled and presumed abandoned pursuant to Code section
  5 25 556.8.  A person may claim the property by filing a claim with
  5 26 the treasurer of state as provided in Code chapter 556.  Code
  5 27 section 331.554 is also amended to require the county to
  5 28 report and remit the amount of such unclaimed property to the
  5 29 treasurer of state on or before November 1 of the fiscal year
  5 30 ending on the preceding June 30 that the obligation is
  5 31 presumed abandoned.
  5 32    Code section 556.8 is amended to provide that an amount
  5 33 outstanding on a check, warrant, or other indebtedness of a
  5 34 county that has remained unclaimed by the owner for more than
  5 35 two years from the date of issuance or after becoming due and
  6  1 payable, as determined by the county treasurer pursuant to
  6  2 Code section 331.554, is presumed abandoned.
  6  3    Code section 556.12 is amended to provide that the
  6  4 treasurer of state is not required to publish a notice of
  6  5 abandoned property concerning any item with a value of less
  6  6 than $100 instead of $50.
  6  7    Code section 556.12 is also amended to provide that the
  6  8 treasurer may mail a notice to each person listed in a report
  6  9 filed by a holder of unclaimed property at the last known
  6 10 address of that person if the treasurer deems such notice is
  6 11 in the best interests of that person and has reason to believe
  6 12 that the address submitted by the holder of the property is
  6 13 sufficient to ensure that delivery of such notice will likely
  6 14 occur.
  6 15    Code section 556.13 is amended to require the holder of
  6 16 tangible property held in a safe deposit box or other
  6 17 safekeeping depository to deliver the property to the
  6 18 treasurer of state at the treasurer's direction at the same
  6 19 time as or after the holder files an abandoned property report
  6 20 required under Code section 556.11.  Currently, such property
  6 21 shall not be delivered to the treasurer until 120 days after
  6 22 filing that report.
  6 23    Code section 556.20 is amended to provide that the
  6 24 treasurer or an employee of the treasurer cannot be held
  6 25 liable in any action for any claim paid in good faith,
  6 26 although a claimant or other specified person representing a
  6 27 claimant to whom a claim is paid may be held liable to a
  6 28 person who proves a superior right to the payment.
  6 29    Code section 556.20 is also amended to allow the treasurer,
  6 30 prior to payment of a claim filed under the chapter, to
  6 31 require a claimant or owner of unclaimed or abandoned property
  6 32 to furnish a surety bond or other form of indemnification and
  6 33 protection determined acceptable and sufficient by the
  6 34 treasurer to protect the treasurer and the state against any
  6 35 loss, liability, or damage which may arise out of or result
  7  1 from the payment of the claim by the treasurer.  The claimant
  7  2 or owner is responsible for all costs associated with such a
  7  3 surety bond, indemnification, or other protection.
  7  4    New Code section 556.24A requires the treasurer to maintain
  7  5 a public record of the name and last known address of each
  7  6 person appearing to be entitled to unclaimed or abandoned
  7  7 property paid or delivered to the treasurer pursuant to Code
  7  8 chapter 556.  The bill also provides that any other
  7  9 identifying information set forth in any report, record,
  7 10 claim, or other document submitted to the treasurer of state
  7 11 concerning unclaimed or abandoned property is a confidential
  7 12 record as provided in Code section 22.7 and shall be made
  7 13 available for public examination or copying only in the
  7 14 discretion of the treasurer.  Code section 22.7 is also
  7 15 amended to include such records as confidential records for
  7 16 the purposes of Code chapter 22.
  7 17 LSB 1236HV 82
  7 18 av:rj/gg/14