SB-0388, As Passed Senate, June 26, 2008

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 388

A bill to amend 1995 PA 29, entitled

"Uniform unclaimed property act,"

by amending sections 2, 15, and 30 (MCL 567.222, 567.235, and

567.250).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 2. As used in this act, unless the context otherwise

requires:

(a) "Administrator" means the state treasurer.

(b) "Apparent owner" means the person whose name appears on

the records of the holder as the person entitled to property held,

issued, or owing by the holder.

general.

(d) "Banking organization" means a bank, trust company,

savings bank, industrial bank, land bank, safe deposit company,

private banker, or any organization defined by law as a bank or

banking organization.

(e) "Business association" means a nonpublic corporation,

joint stock company, investment company, business trust,

partnership, or association for business purposes of 2 or more

individuals, whether or not for profit, including a banking

organization, financial organization, insurance company, or

utility.

(f) "Domicile" means the state of incorporation of a

corporation and the state of the principal place of business of an

unincorporated person.

(g) "Financial organization" means a savings and loan

association, cooperative bank, building and loan association,

savings bank, or credit union.

(h) "Holder" means a person, wherever organized or domiciled,

who is 1 or more of the following:

(i) In possession of property belonging to another.

(ii) A trustee.

(iii) Indebted to another on an obligation.

(i) "Insurance company" means an individual, association,

corporation, fraternal or mutual benefit organization, or any other

legal entity, whether or not for profit, that is engaged or

attempting to engage in the business of making insurance or surety

contracts.

(j) "Intangible property" includes all of the following:

(i) Money, checks, drafts, deposits, interest, dividends, and

income.

(ii) Credit balances, customer overpayments, ~~gift certificates,~~

security deposits, refunds, credit memos, unpaid wages, unused

airline tickets, and unidentified remittances.

(iii) Except as provided in sections 15(4) and 30(1), gift

certificates and gift cards.

(iv) (~~iii~~) Stocks and other intangible ownership interests in

business associations.

(v) (iv) Money deposited to redeem stocks, bonds, coupons, and

other securities, or to make distributions.

(vi) (v) Amounts due and payable under the terms of insurance

policies.

(vii) (vi) Amounts distributable from a trust or custodial fund

established under a plan to provide health, welfare, pension,

vacation, severance, retirement, death, stock purchase, profit

sharing, employee savings, supplemental unemployment insurance, or

similar benefits.

(k) "Last known address" means a description of the location

of the apparent owner sufficient for the purpose of the delivery of

mail.

(l) "Owner" means a depositor, in the case of a deposit; a

beneficiary, in case of a trust other than a deposit in trust; a

creditor, claimant, or payee, in the case of other intangible

property; or a person having a legal or equitable interest in

property subject to this act. Owner includes the legal

representative of the person defined as an owner in this

subdivision.

(m) "Person" means an individual, business association, state

or other government, governmental subdivision or agency, public

corporation, public authority, estate, trust, 2 or more persons

having a joint or common interest, or any other legal or commercial

entity.

(n) "Property" means tangible or intangible personal property

owned by a person.

(o) "State" means any state, district, commonwealth,

territory, insular possession, or any other area subject to the

legislative authority of the United States.

(p) "Utility" means a person who owns or operates for public

use any plant, equipment, property, franchise, or license for the

transmission of communications or the production, storage,

transmission, sale, delivery, or furnishing of electricity, water,

steam, or gas.

Sec. 15. (1) A Except as provided in subsection (4), a gift

certificate, gift card, or a credit memo ~~issued in the ordinary~~

~~course of an issuer's business that remains unclaimed by the owner~~

is presumed abandoned if either of the following apply:

(a) The certificate, card, or memo is not claimed or used for

~~more than~~ a period of 5 years after becoming payable or

distributable. ~~is presumed abandoned.~~

(b) The certificate, card, or memo was used or claimed 1 or

more times without exhausting its full value, but subsequently was

not claimed or used for an uninterrupted period of 5 years.

(2) For purposes of subsection (1), a gift certificate or gift

card is considered to have been claimed or used if there is any

transaction processing activity on the gift certificate or gift

card including, but not limited to, redeeming, refunding, or adding

value to the certificate or card. Activity initiated by the issuer

of the certificate or card, including, but not limited to,

assessing inactivity fees or similar service fees, does not

constitute transaction processing activity for purposes of this

subsection.

(3) ~~(2)~~ In the case of a gift certificate or gift card, the

owner is presumed to be a gift recipient of the gift certificate or

gift card, and the amount presumed abandoned is the price paid by

the purchaser for the gift certificate or gift card, less the total

of any purchases or fees assessed against the certificate or card.

In the case of a credit memo, the amount presumed abandoned is the

amount credited to the recipient of the memo.

(4) This act does not apply to a gift certificate as defined

in section 3e of the Michigan consumer protection act, 1976 PA 331,

MCL 445.903e, that is issued for retail goods or services by a

person engaged in the retail sale of goods or services.

Sec. 30. (1) The expiration, before or after the effective

date of this act, of any period of time specified by contract,

statute, or court order, during which a claim for money or property

can be made or during which an action or proceeding may be

commenced or enforced to obtain payment of a claim for money or to

recover property, does not prevent the money or property from being

presumed abandoned or affect any duty to file a report or to pay or

deliver abandoned property to the administrator as required by this

House Bill No. 388 (H-2) as amended November 27, 2007

act. This subsection does not apply to gift cards or gift

certificates.

(2) An action or proceeding shall not be commenced by the

administrator with respect to any duty of a holder under this act

more than 10 years after the duty arose.

Enacting section 1. This amendatory act takes effect [September

30],

2008.

Enacting section 2. This amendatory act does not take effect

unless all of the following bills of the 94th Legislature are

enacted into law:

(a) House Bill No. 4050.

(b) House Bill No. 4317.