HSB 33 (LSB 1031YC (3) 90)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON LUNDGREN)

A BILL FOR

An Act relating to communication methods regarding the disposition of unclaimed property and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 556.1, Code 2023, is amended by adding the following new subsection:
   NEW SUBSECTION.  3A.  “Electronic messaging” means communication conducted through electronic mail, text message, or other electronic means, including but not limited to an online banking website application.
    Sec. 2.  Section 556.2, subsection 1, paragraph b, Code 2023, is amended to read as follows:
   b.  Corresponded in writing or through electronic messaging with the banking organization concerning the deposit.
    Sec. 3.  Section 556.2, subsection 1, paragraph d, subparagraphs (1) and (2), Code 2023, are amended to read as follows:
   (1)  Communicated in writing or through electronic messaging with the bank.
   (2)  Otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee of the bank and if the bank communicates in writing or through electronic messaging with the owner with regard to the property that would otherwise be abandoned under this subsection at the physical address, electronic mail address, or phone number on file with the banking organization to which communications regarding the other relationship are regularly sent, including electronic messaging.
    Sec. 4.  Section 556.2, subsection 1, paragraph e, Code 2023, is amended to read as follows:
   e.  Been sent any written correspondence, notice, or information by first class mail regarding the deposit by the banking organization on or after July 1, 1992, if the correspondence, notice, or information requests an address correction on the face of the envelope, and is not returned to the bank organization for nondelivery, and if the bank organization maintains a record of all returned mail, or been sent any correspondence, notice, or information through electronic messaging, and is not returned electronically to the banking organization for nondelivery, and if the bank organization maintains a record of all returned electronic messaging.
    Sec. 5.  Section 556.2, subsection 2, paragraph b, Code 2023, is amended to read as follows:
   b.  Corresponded in writing or through electronic messaging with the financial organization concerning the funds or deposit.
    Sec. 6.  Section 556.2, subsection 2, paragraph d, subparagraphs (1) and (2), Code 2023, are amended to read as follows:
   (1)  Communicated in writing or through electronic messaging with the financial organization.
   (2)  Otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee of the financial organization and if the financial organization communicates in writing or through electronic messaging with the owner with regard to the property that would otherwise be abandoned under this subsection at the physical address or electronic mail address or phone number on file with the financial organization to which communications regarding the other relationship are regularly sent, or messages sent through other electronic means.
    Sec. 7.  Section 556.2, subsection 2, paragraph e, Code 2023, is amended to read as follows:
   e.  Been sent any written correspondence, notice, or information by first class mail regarding the funds or deposits by the financial organization on or after July 1, 1992, if the correspondence, notice, or information requests an address correction on the face of the envelope, and is not returned to the financial organization for nondelivery, and if the financial organization maintains a record of all returned mail, or been sent any correspondence, notice, or information through electronic messaging, and is not returned electronically to the financial organization for nondelivery, and if the financial organization maintains a record of all returned electronic messaging.
    Sec. 8.  Section 556.2, subsection 3, Code 2023, is amended to read as follows:
   3.  Any property described in subsections 1 and 2 which is automatically renewable is matured for purposes of subsections 1 and 2 upon the expiration of its initial time period, but in the case of any renewal to which the owner consents at or about the time of renewal by communicating in writing or through electronic messaging with the banking or financial organization or otherwise indicating consent as evidenced by a memorandum or other record on file prepared by an employee of the organization, the property is matured upon the expiration of the last time provided for which consent was given. However, consent to renewal is deemed to have been given if the owner is sent written notice of the renewal by first class mail which requests an address correction on the face of the envelope, the notice is not returned for nondelivery, and the banking or financial organization maintains a record of all returned mail, or if the owner is sent written notice of the renewal through electronic messaging and the banking or financial organization maintains a record of all returned electronic messaging and the notice is not returned to the banking or financial organization. If at the time period for delivery in section 556.13, a penalty or forfeiture in the payment of interest would result from the delivery of the property, the time period for delivery is extended until the time when no penalty or forfeiture would result.
    Sec. 9.  Section 556.2, subsection 5, paragraphs a and b, Code 2023, are amended to read as follows:
   a.  A banking organization or financial organization shall send to the owner of each account, to which none of the actions specified in subsection 1, paragraphs “a” through “e” or subsection 2, paragraphs “a” through “e” have occurred during the preceding three calendar years, a notice by certified mail or through electronic messaging stating in substance the following:
  According to our records, we have had no contact with you regarding (describe account) for more than three years. Under Iowa law, if there is a period of three years without contact, we may be required to transfer this account to the custody of the treasurer of state of Iowa as unclaimed property. You may prevent this by taking some action, such as a deposit or withdrawal, or by contacting us through electronic messaging, which indicates your interest in this account, or by signing this form and returning it to us.

  I desire to keep the above account open and active.

.........
Your signature

   b.  The notice required under this section shall be mailed sent within thirty days of the lapse of the three-year period in which there is no activity. The cost of the certified mail of the notice required in this section may be deducted from the account by the banking or financial organization.
    Sec. 10.  APPLICABILITY.  This Act applies to electronic messaging sent or received on or after the effective date of this Act.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to electronic communication regarding property that is assumed to be abandoned for purposes of property held by a bank, financial institution, or business association.
   The bill defines “electronic messaging” to mean electronic mail, text messaging, or other electronic means of communication, including an online banking website application.
   The bill provides that methods of communication between an owner of specified forms of property and a banking or financial organization or by a business association that can, if certain circumstances are met, prevent the property from being considered abandoned include electronic messaging along with correspondence in writing. The bill also provides that consent for renewal of previously held property between an owner and a banking or financial organization or a business association can be considered effective if notice was sent by electronic messaging and the notice is not returned to the bank for nondelivery. 
   The bill applies to electronic messaging sent or received on or after the effective date of the bill.