HB-5283, As Passed Senate, September 8, 2016

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5283

A bill to amend 1995 PA 29, entitled

"Uniform unclaimed property act,"

by amending sections 2 and 36 (MCL 567.222 and 567.256), section 2

as amended by 2015 PA 242, and by adding section 36a.

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) "Eligible holder" means a holder that meets 1 or more of

the following:

(i) Is a business whose principal place of business is in this

state as evidenced by 20% or more of its payroll or 20% or more of

its real and tangible personal property, except inventory, owned or

rented in this state during the period subject to examination or

the majority of officers that direct, control, and coordinate the

activities of the business are employed in this state.

(ii) Is a corporation that wholly owns a corporation that has

incorporated in this state and the corporation incorporated in this

state meets the criteria under subparagraph (i).

(iii) Is a corporation that is wholly owned by a corporation

that is incorporated in this state and the corporation incorporated

in this state meets the criteria under subparagraph (i).

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

association, cooperative bank, building and loan association,

savings bank, or credit union.

(i) "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.

(j) "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.

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

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

income.

(ii) Credit balances, customer overpayments, 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) Stocks and other intangible ownership interests in

business associations.

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

other securities, or to make distributions.

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

policies.

(vii) 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.

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

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

mail.

(m) "Locator" means a person registered under section 36a(2)

who locates owners of unclaimed property and enters into a written

agreement with an owner to document entitlement to property and to

locate, deliver, recover, or claim, or assist in locating,

delivering, recovering, or claiming, property that is presumed

abandoned, for compensation.

(n) ~~(m)~~ "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.

(o) ~~(n)~~ "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.

(p) ~~(o)~~ "Property" means tangible or intangible personal

property owned by a person.

(q) ~~(p)~~ "State" means any state, district, commonwealth,

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

legislative authority of the United States.

(r) ~~(q)~~ "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. 36. (1) An agreement to pay compensation to recover or

assist in the recovery of property reported under section 18, made

within 24 months after the date payment or delivery is made under

section 20, is unenforceable.

(2) A written agreement between a locator and an apparent

owner of unclaimed property is subject to subsection (1).

Sec. 36a. (1) The administrator may sell or otherwise provide

unclaimed property account information to a locator for unclaimed

accounts that remain unclaimed for not less than 24 months after

the date payment or delivery is made under section 20 if the value

of the unclaimed property is $10,000.00 or more. The administrator

shall provide the unclaimed property account information in an

electronic searchable format. The unclaimed property account

information may include all of the following:

(a) The name of the apparent owner.

(b) The last known address of the apparent owner, as reported

by the holder.

(d) The type and amount of property and cash value of the

property.

(2) Before the department provides information to a locator

under subsection (1), the locator shall register with the

department in a form and manner determined by the department and

pay a fee to the department of $1,200.00. The fees collected under

this subsection shall be used by the department to register and

monitor locators under this act. The locator shall renew its

registration and pay a fee of $1,200.00 every 4 years. To register,

a locator shall provide the department a primary business address

and telephone number, and the name, telephone number, and

electronic mail address of the individual who will be the primary

point of contact with the department. A locator is ineligible for

registration if, within the immediately preceding 10 years, the

individual, a current officer or owner of an entity, or a current

employee of the individual or entity who performs or directs

locator services was convicted of a felony involving dishonesty,

deceit, fraud, or a breach of fiduciary duty.

(3) A locator who receives unclaimed property account

information from the administrator under subsection (1) shall not

distribute that information to other locators or any other person,

other than the apparent owner, for compensation.