May 6, 2003, Introduced by Reps. Murphy, Clack, Accavitti, Stallworth, Byrum, Hopgood, Condino, Sak, Plakas, Jamnick, Gieleghem, Elkins, Vagnozzi, Law, Dennis and Hardman and referred to the Committee on Family and Children Services.
A bill to amend 1995 PA 29, entitled
"Uniform unclaimed property act,"
by amending the title and sections 2, 14, 18, 19, 20, 21, 24, 25,
27, 31, and 33 (MCL 567.222, 567.234, 567.238, 567.239, 567.240,
567.241, 567.244, 567.245, 567.247, 567.251, and 567.253),
sections 18, 19, 20, 25, and 31 as amended by 1997 PA 195, and by
adding section 2a; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 TITLE
2 An act concerning unclaimed property; to provide for the
3 reporting and disposition of unclaimed property; to make uniform
4 the law concerning unclaimed property, other than the disposition
5 of unclaimed child support; to prescribe the powers and duties of
6 certain state agencies and officials; to prescribe penalties and
7 provide remedies; and to repeal acts and parts of acts.
1 Sec. 2. As used in this act, unless the context otherwise
2 requires:
3 (a) "Administrator" means the state treasurer.
4 (b) "Apparent owner" means the person whose name appears on
5 the records of the holder as the person entitled to property
6 held, issued, or owing by the holder.
7 (c) "Attorney general" means the department of attorney
8 general.
9 (d) "Banking organization" means a bank, trust company,
10 savings bank, industrial bank, land bank, safe deposit company,
11 or private banker , or
any another organization defined by
12 law as a bank or banking organization.
13 (e) "Business association" means a nonpublic corporation,
14 joint stock company, investment company, business trust,
15 partnership, or association for business purposes of 2 or more
16 individuals, whether or not for profit, including a banking
17 organization, financial organization, insurance company, or
18 utility.
19 (f) "Children's trustee" means the position established in
20 section 2a with the responsibility for undisbursed child support
21 collections as provided in this act.
22 (g) (f) "Domicile"
means the state of incorporation of a
23 corporation and the state of the principal place of business of
24 an unincorporated person.
25 (h) (g) "Financial
organization" means a savings and loan
26 association, cooperative bank, building and loan association,
27 savings bank, or credit union.
1 (i) "Friend of the court" means an office of the friend of
2 the court created under section 3 of the friend of the court act,
3 1982 PA 294, MCL 552.503.
4 (j) (h) "Holder"
means a person, wherever organized or
5 domiciled, who is 1 or more of the following:
6 (i) In possession of property belonging to another.
7 (ii) A trustee.
8 (iii) Indebted to another on an obligation.
9 (k) (i) "Insurance
company" means an individual,
10 association, corporation, or fraternal or mutual benefit
11 organization, or any
other another legal entity, whether or not
12 for profit, that is engaged or attempting to engage in the
13 business of making insurance or surety contracts.
14 (l) (j) "Intangible
property" includes all of the
15 following:
16 (i) Money, checks, drafts, deposits, interest, dividends, and
17 income.
18 (ii) Credit balances, customer overpayments, gift
19 certificates, security deposits, refunds, credit memos, unpaid
20 wages, unused airline tickets, and unidentified remittances.
21 (iii) Stocks and other intangible ownership interests in
22 business associations.
23 (iv) Money deposited to redeem stocks, bonds, coupons, and
24 other securities, or to make distributions.
25 (v) Amounts due and payable under the terms of insurance
26 policies.
27 (vi) Amounts distributable from a trust or custodial fund
1 established under a plan to provide health, welfare, pension,
2 vacation, severance, retirement, death, stock purchase, profit
3 sharing, employee savings, supplemental unemployment insurance,
4 or similar benefits.
5 (vii) Money paid as child support to the friend of the court
6 or the state disbursement unit.
7 (m) (k) "Last
known address" means a description of the
8 location of the apparent owner sufficient for the purpose of the
9 delivery of mail.
10 (n) (l) "Owner"
means a depositor, in the case of a
11 deposit; a beneficiary, in case of a trust other than a deposit
12 in trust; a creditor, claimant, or payee, in the case of other
13 intangible property; or a person having a legal or equitable
14 interest in property subject to this act. Owner includes the
15 legal representative of the person defined as an owner in this
16 subdivision.
17 (o) (m) "Person"
means an individual, business association,
18 state or other government, governmental subdivision or agency,
19 public corporation, public authority, estate, or trust, 2 or more
20 persons having a joint or
common interest, or any other another
21 legal or commercial entity.
22 (p) (n) "Property"
means tangible or intangible personal
23 property owned by a person.
24 (q) (o) "State"
means any a state, district,
25 commonwealth, territory,
insular possession, or any other area
26 subject to the legislative authority of the United States.
27 (r) "State disbursement unit" or "SDU" means the entity
1 established in section 6 of the office of child support act, 1971
2 PA 174, MCL 400.236.
3 (s) "Undisbursed child support" means money paid as child
4 support to a friend of the court or the SDU that is reportable
5 and payable to the children's trustee under this act.
6 (t) "Undisbursed child support fund" means the fund
7 established in section 24.
8 (u) (p) "Utility"
means a person who owns or operates for
9 public use any plant, equipment, property, franchise, or license
10 for the transmission of communications or the production,
11 storage, transmission, sale, delivery, or furnishing of
12 electricity, water, steam, or gas.
13 Sec. 2a. (1) The children's trustee is established within
14 the department of treasury in the agency that is responsible for
15 unclaimed property that is paid or delivered to the administrator
16 under this act. The children's trustee has control over and is
17 responsible for the proper distribution of undisbursed child
18 support. If both the administrator and the children's trustee
19 have a power or duty under this act, the children's trustee has
20 the power or duty to the exclusion of the administrator, but only
21 as to undisbursed child support.
22 (2) Annually before February 1, the children's trustee shall
23 report to the appropriations committees of the senate and house
24 of representatives all of the following for the previous fiscal
25 year:
26 (a) Amount of undisbursed child support paid to the
27 undisbursed child support fund.
1 (b) Number of children who received money from the
2 undisbursed child support fund.
3 (c) Recommendations for future distribution of money from the
4 undisbursed child support fund.
5 (3) The administrator shall provide the children's trustee
6 with sufficient staff and other resources for the children's
7 trustee to carry out the duties required by this act.
8 (4) This section is repealed 3 years after the effective date
9 of this section.
10 Sec. 14. (1) Property held for the owner by a court, state,
11 or other government, governmental subdivision or agency, public
12 corporation, or public authority that remains unclaimed by the
13 owner for more than 1 year after becoming payable or
14 distributable is presumed abandoned.
15 (2) As clarification and without limiting the property to
16 which this section applies, this section applies to intangible
17 property that is money paid as child support to the friend of the
18 court or the state disbursement unit.
19 Sec. 18. (1) A person holding property presumed abandoned
20 and subject to the state's custody as unclaimed property under
21 this act shall report to the administrator or children's trustee
22 concerning the property as provided in this section.
23 (2) The report shall be verified and shall include all of the
24 following:
25 (a) The name, if known, social security number, if known, and
26 last known address, if any, of each person appearing from the
27 records of the holder to be the owner of property of the value of
1 $50.00 or more presumed abandoned under this act. The children's
2 trustee shall ensure that a holder of undisbursed child support
3 reports the names of possible recipients of the undisbursed child
4 support. This subdivision does not apply to travelers checks and
5 money orders.
6 (b) In the case of unclaimed funds of $50.00 or more held or
7 owing under any a
life or endowment insurance policy or annuity
8 contract, the full name and last known address of the insured or
9 annuitant and of the beneficiary according to the records of the
10 insurance company holding or owing the funds.
11 (c) In the case of the contents of a safe deposit box or
12 other safekeeping repository or of other tangible property, a
13 description of the property and the place where it is held and
14 may be inspected by the administrator and any amounts owing to
15 the holder.
16 (d) The nature and identifying number, if any, or description
17 of the property and the amount appearing from the records to be
18 due. However, items of value under $50.00 each may be reported
19 in the aggregate.
20 (e) The date the property became payable, demandable, or
21 returnable, and the date of the last transaction with the
22 apparent owner with respect to the property.
23 (f) Other information the administrator or children's trustee
24 requires by rule as necessary for the administration of this
25 act.
26 (3) If the person holding property presumed abandoned and
27 subject to the state's custody as unclaimed property under this
1 act is a successor to other persons who previously held the
2 property for the apparent owner, or the holder has changed its
3 name while holding the property, the holder shall file with the
4 report all known names and addresses of each previous holder of
5 the property.
6 (4) Except as otherwise provided in this subsection, the
7 report shall be filed on or before November 1 of each year for
8 the 12-month period ending on the immediately preceding June 30.
9 The administrator or children's trustee may postpone the date to
10 file a report, on written
request by any a person required to
11 file a report under this section. The administrator or
12 children's trustee may extend the filing date for up to 60 days
13 after the deadline if an estimated payment is paid on or before
14 the deadline for the 12-month period ending on the immediately
15 preceding June 30. Remittance of an estimated payment without a
16 report on or before the deadline shall be considered a request
17 for extension. A request for extension of time to file the
18 report is not a request for an extension of time to remit
19 payments. Interest and penalties will not accrue during the
20 extension period against a person who remits an estimated
21 payment. The administrator or children's trustee shall determine
22 how estimated payments are to be remitted.
23 (5) Not less than 60 days or more than 365 days before filing
24 the report required by this section, the holder in possession of
25 property presumed abandoned and subject to the state's custody as
26 unclaimed property under this act shall send written notice to
27 the apparent owner at his or her last known address informing him
1 or her that the holder is in possession of property subject to
2 this act if all of the following requirements are met:
3 (a) The holder has in its records an address for the apparent
4 owner that the holder's records do not disclose to be
5 inaccurate.
6 (b) The claim of the apparent owner is not barred by the
7 statute of limitations.
8 (c) The property has a value of $50.00 or more or, if the
9 holder filing a report under this section is reporting for the
10 current report year at least 25,000 properties over $50.00 each,
11 the property has a value of $100.00 or more.
12 Sec. 19. (1) The administrator or children's trustee shall
13 cause a notice to be published not later than November 1 of the
14 year immediately following the report required by section 18 in a
15 newspaper of general circulation in the county of this state in
16 which is located the last known address of any person named in
17 the notice. If no address is listed or the address is outside
18 this state, the notice must be published in the county in which
19 the holder of the property has its principal place of business
20 within this state or another county as determined by the
21 administrator or children's trustee.
22 (2) The published notice shall be entitled "notice of names
23 of persons appearing to be owners of abandoned property" or
24 "notice of names of payees of undisbursed child support" and
25 contain all of the following:
26 (a) The names, in alphabetical order, of persons listed in
27 the report and entitled to notice within the county as specified
1 in subsection (1). The notice of names of payees of undisbursed
2 child support shall include, as possible owners of undisbursed
3 child support, the names of the custodial parent and each child
4 for whom support has been paid.
5 (b) A statement that information concerning the property may
6 be obtained by any a
person possessing an interest in the
7 property by addressing an inquiry to the administrator or
8 children's trustee.
9 (c) A statement informing an owner of property held by the
10 administrator or children's trustee on how to file a claim with
11 the administrator or children's trustee to receive his or her
12 property.
13 (3) The administrator or children's trustee is not required
14 to publish in the notice any items of less than $50.00 unless the
15 administrator or children's trustee considers their publication
16 to be in the public interest. The children's trustee shall
17 provide public service announcements on filing a claim for
18 undisbursed child support.
19 (4) The children's trustee shall search for identifying
20 information for each owner of undisbursed child support listed in
21 the notice published under this section on all of the family
22 independence agency's electronic data systems, including, but not
23 limited to, the client information system, client services
24 system, child support automation systems, state parent locator
25 service, and federal parent locator service. The electronic data
26 source shall not be released for databases containing
27 confidential information.
1 (5) (4) This
section is not applicable to sums payable on
2 travelers checks, money orders, and other written instruments
3 presumed abandoned under section 5.
4 Sec. 20. (1) A person who is required to file a report
5 under section 18 shall at the time for filing the report pay or
6 deliver to the administrator or children's trustee all abandoned
7 property that is required to be reported under section 18 or any
8 balance owing if an estimated payment was made under section 18.
9 (2) The holder of an interest under section 11 shall deliver
10 a duplicate certificate or other evidence of ownership if the
11 holder does not issue certificates of ownership to the
12 administrator. Upon delivery of a duplicate certificate to the
13 administrator, the holder
and any a transfer agent, registrar,
14 or other person acting for or on behalf of a holder in executing
15 or delivering the duplicate certificate is relieved of all
16 liability of every kind in accordance with the provision of
17 section 21 to every
person, including any a person acquiring
18 the original certificate or the duplicate of the certificate
19 issued to the
administrator, for any losses or damages
20 resulting to any a
person by the issuance and delivery to the
21 administrator of the duplicate certificate.
22 Sec. 21. (1) Upon the payment or delivery of property to
23 the administrator or children's trustee, the state assumes
24 custody and responsibility for the safekeeping of the property.
25 A person who pays or delivers property to the administrator or
26 children's trustee in good faith is relieved of all liability to
27 the extent of the value of the property paid or delivered for
1 any a claim then existing or which that
may arise or be made
2 in respect to the property after the payment or delivery to the
3 administrator or children's trustee.
4 (2) A holder who has paid money to the administrator
5 pursuant to or children's trustee in accordance with this
act
6 may make payment to any
a person appearing to the holder to be
7 entitled to payment and, upon filing proof of payment and proof
8 that the payee was entitled to the payment, the administrator or
9 children's trustee shall promptly reimburse the holder for the
10 payment without imposing any
a fee or other charge. If
11 reimbursement is sought for a payment made on a negotiable
12 instrument, including a travelers check or money order, the
13 holder shall be reimbursed under this subsection upon filing
14 proof that the instrument was duly presented and that payment was
15 made to a person who appeared to the holder to be entitled to
16 payment. The holder shall be reimbursed for payment made under
17 this subsection even if the payment was made to a person whose
18 claim was barred under section 30(1).
19 (3) A holder who has delivered property, including a
20 certificate of any interest in a business association, other than
21 money to the
administrator pursuant to under this act, may
22 reclaim the property if still in the possession of the
23 administrator, without
paying any a fee or other charge, upon
24 filing proof that the owner has claimed the property from the
25 holder.
26 (4) The administrator or children's trustee may accept the
27 holder's affidavit as sufficient proof of the facts that entitle
1 the holder to recover money and property under this section.
2 (5) If the holder pays or delivers property to the
3 administrator or children's trustee in good faith and another
4 person claims the property from the holder or another state
5 claims the money or property under its laws relating to escheat
6 or abandoned or unclaimed property, the administrator or
7 children's trustee, upon written notice of the claim, shall
8 defend the holder against the claim and indemnify the holder
9 against any liability on the claim.
10 (6) For the purposes of this section, "good faith" means all
11 of the following:
12 (a) That payment or delivery was made in a reasonable attempt
13 to comply with this act.
14 (b) That the person delivering the property was not a
15 fiduciary then in breach of trust in respect to the property and
16 had a reasonable basis for believing, based on the facts then
17 known to him or her, that the property was abandoned for the
18 purposes of this act.
19 (c) That there is no showing that the records under which the
20 delivery was made did not meet reasonable commercial standards of
21 practice in the industry.
22 (7) Property removed from a safe deposit box or other
23 safekeeping repository is received by the administrator subject
24 to the holder's right under this subsection to be reimbursed for
25 the actual cost of the
opening and to any a valid lien or
26 contract providing for the holder to be reimbursed for unpaid
27 rent or storage charges. The administrator shall reimburse or
1 pay the holder out of the proceeds remaining after deducting the
2 administrator's selling cost.
3 (8) For purposes of section 7(1)(e), a banking or financial
4 organization is considered to have acted in good faith if it has
5 made a reasonable search of its records as determined by the
6 commercial standards of practice in the industry and reasonably
7 determined that the banking or financial organization does not
8 have another relationship with the apparent owner.
9 Sec. 24. (1) Except as otherwise provided by this section,
10 the administrator shall promptly deposit in the general fund of
11 this state all funds received under this act, including the
12 proceeds from the sale of abandoned property under section 23.
13 The administrator shall retain in a separate trust fund an amount
14 not less than $100,000.00 from which prompt payment of claims
15 allowed under this act shall be made. When making the deposit,
16 the administrator shall record the name and last known address of
17 each person appearing from the holders' reports to be entitled to
18 the property and the name and last known address of each insured
19 person or annuitant and beneficiary and with respect to each
20 policy or contract listed in the report of an insurance company,
21 the number of the policy or contract, the name of the insurance
22 company, and the amount due. The name of the owner or apparent
23 owner and a gross description of the property only shall be
24 available for public inspection at all reasonable business
25 hours.
26 (2) Before making any
a deposit to the credit of the
27 general fund, the administrator may deduct any of the following:
1 (a) Costs in connection with the sale of abandoned property.
2 (b) Costs of mailing
and publication in connection with any
3 abandoned property.
4 (c) Reasonable service charges.
5 (d) Costs incurred in examining records of holders of
6 property and in collecting the property from those holders.
7 (3) The administrator shall transfer to the senior care
8 respite fund created in
the older Michiganians act, Act No. 180
9 of the Public Acts of
1981, being sections 400.581 to 400.594 of
10 the Michigan Compiled
Laws 1981 PA 180, MCL 400.581 to
400.594,
11 funds that escheat to
this state pursuant to under section 403a
12 of the nonprofit health
care corporation reform act, Act No. 350
13 of the Public Acts of
1980, being section 550.1403a of the
14 Michigan Compiled Laws
1980 PA 350, MCL 550.1403a.
15 (4) The undisbursed child support fund is created in the
16 state treasury as a separate fund. The undisbursed child support
17 fund shall be administered by the children's trustee. The
18 administrator shall transfer to the undisbursed child support
19 fund undisbursed child support that escheats to this state under
20 this act. Money in the fund shall be expended only as provided
21 in this act and the child support assurance project act. Money
22 in the fund at the close of the fiscal year shall remain in the
23 fund and shall not lapse to the general fund.
24 Sec. 25. (1) A person, excluding another state, claiming an
25 interest in any a
property paid or delivered to the
26 administrator or children's trustee under this act, may file with
27 the administrator or children's trustee a claim on a form
1 prescribed by the administrator or children's trustee and
2 verified by the claimant.
3 (2) The administrator or children's trustee shall consider
4 each claim within 90 days after it is filed and give written
5 notice to the claimant if the claim is denied in whole or in
6 part. The notice may be given by mailing it to the last address,
7 if any, stated in the claim as the address to which notices are
8 to be sent. If no address for notices is stated in the claim,
9 the notice may be mailed to the last address, if any, of the
10 claimant as stated in the claim. No notice of denial need be
11 given if the claim fails to state either the last address to
12 which notices are to be sent or the address of the claimant.
13 (3) If a claim is allowed, the administrator or children's
14 trustee shall pay over or deliver to the claimant the property or
15 the amount the administrator or children's trustee actually
16 received or the net proceeds if it has been sold by the
17 administrator, plus any additional amount required by section
18 22. If the property claimed was interest bearing to the owner on
19 the date of surrender by the holder, and if the date of surrender
20 is on or after March 28, 1996, the administrator also shall pay
21 interest at a rate of 6% a year or any lesser rate the property
22 earned while in the possession of the holder. Interest begins to
23 accrue when the interest bearing property is delivered to the
24 administrator and ceases on the earlier of the expiration of 10
25 years after delivery or the date on which payment is made to the
26 owner. No interest on interest bearing property is payable for
27 any period before March 28, 1996.
1 (4) Any A
holder who pays the owner for property that has
2 been delivered to the
state and which that, if claimed from the
3 administrator or children's trustee, would be subject to
4 subsection (3) shall add interest as provided in that
5 subsection. The added interest must be repaid to the holder by
6 the administrator or children's trustee in the same manner as the
7 principal.
8 Sec. 27. A person who is aggrieved by a decision of the
9 administrator or children's trustee or whose claim has not been
10 acted upon within 90 days after its filing may bring an action to
11 establish the claim in the circuit court, naming the
12 administrator or children's trustee as a defendant. The action
13 shall be brought within 90 days after the decision of the
14 administrator or children's trustee or within 180 days after the
15 filing of the claim if the administrator or children's trustee
16 has failed to act on it. If the aggrieved person establishes the
17 claim in an action against the administrator or children's
18 trustee, the court shall award the claimant costs and reasonable
19 attorney's fees.
20 Sec. 31. (1) The administrator or children's trustee may
21 require a person who has not filed a report under this act or a
22 person who the administrator or children's trustee believes has
23 filed an inactive, incomplete, or false report, to file a
24 verified report in a form specified by the administrator or
25 children's trustee. The report shall state whether the person is
26 holding any unclaimed
property reportable or deliverable under
27 this act, describe unclaimed property not previously reported or
1 as to which the administrator or children's trustee has made
2 inquiry, and specifically identify and state the amounts of
3 property that may be in issue.
4 (2) The administrator or children's trustee, at reasonable
5 times and upon reasonable notice, may examine the records of a
6 person to determine whether the person has complied with this
7 act. The administrator or children's trustee may conduct the
8 examination even if the person believes he or she is not in
9 possession of any property
reportable or deliverable under this
10 act. The administrator or children's trustee may contract with
11 any other another person to conduct the examination on
behalf
12 of the administrator or children's trustee.
13 (3) If a person is treated under section 13 as the holder of
14 the property only insofar as the interest of the business
15 association in the property is concerned, the administrator,
16 pursuant to as provided in subsection (2), may examine the
17 records of the person if the administrator has given the notice
18 required by subsection (2) to both the person and the business
19 association at least 90 days before the examination.
20 (4) If an examination of the records of a person results in
21 the disclosure of property reportable and deliverable under this
22 act, the administrator or children's trustee may assess the cost
23 of the examination against the holder at the rate of $50.00 a day
24 for each examiner.
; however, the The charges shall not exceed
25 the value of the property found to be reportable and
26 deliverable. The cost of
examination made pursuant to under
27 subsection (3) shall be imposed only against the business
1 association.
2 (5) If, after
March 28, 1996, a holder fails after the
3 effective date of this
act to maintain the records required
by
4 section 32 and the records of the holder available for the
5 periods subject to this act are insufficient to permit the
6 preparation of a report, the administrator or children's trustee
7 may require the holder to report and pay an amount as may
8 reasonably be estimated from any available records.
9 Sec. 33. The administrator or children's trustee may bring
10 an action in a court of competent jurisdiction to enforce this
11 act.
12 Enacting section 1. This amendatory act does not take
13 effect unless all of the following bills of the 92nd Legislature
14 are enacted into law:
15 (a) Senate Bill No. _______ or House Bill No. 4636
16 (request no. 00631'03).
17 (b) Senate Bill No. _______ or House Bill No. 4635
18 (request no. 00632'03).