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ARIZONA HOUSE OF REPRESENTATIVESFifty-seventh Legislature First Regular Session |
House: WM DPA 5-4-0-0 | 3rd Read DPA 31-29-0-0-0Senate: FIN DPA 4-3-0-0 | 3rd Read 17-11-2-0 Final Read: 33-21-6-0 |
HB 2517: written request; property locators
Sponsor: Representative Olson, LD 10
Vetoed by the Governor
Overview
Mandates outlined unclaimed property account information is to be publicly available on a database and allows unclaimed property locators enter into agreements to locate unclaimed property for owners at a fee of not more than 30% of the unclaimed property value.
History
Current law states that an agreement entered into by an owner with another person if the primary purpose of that agreement is to locate, deliver, recover or assist in the recovery of property that is presumed abandoned, if the agreement was entered into during the period commencing on the date the property was presumed abandoned and extending to a time that is twenty-four months after the date that the property is paid or delivered to the department unless the agreement is with an attorney to file a claim relating to the unclaimed property or to contest a denial of a claim (A.R.S. § 44-327).
1. Allows for the disclosure of confidential information relating to unclaimed property to the claimant or successor in interest. (Sec. 1)
2. Allows a claimant to enter into an agreement to recover unclaimed property if the agreement:
a) is in at least ten-point type;
b) lists the unclaimed property account numbers being claimed;
c) describes the services to be performed;
d) is signed by the claimant; and
e) states the value of the unclaimed property before any charges have been deducted. (Sec. 2)
3. Removes language to render agreements to locate unclaimed property as void and unenforceable. (Sec. 2)
4. Reduces the maximum fee for an enforceable agreement to recover property from 30% to 20%. (Sec. 2)
5. Allows a claimant or DOR on the claimant's behalf to maintain an action to reduce compensation under specific circumstances. (Sec. 2)
6. Requires DOR to make non-confidential unclaimed property account information available to the public in a database. (Sec. 3)
7. Requires the account information to include:
a) the name of the apparent owner;
b) the complete last known address;
c) the relationship code, if applicable;
d) the type of property;
e) the cash value of the property;
f) if the property is securities or mutual fund shares, the number of shares or items and the exchange ticker symbol or fund name, if applicable;
g) the year the property was reported to DOR;
h) the name and contact information of the holder;
i) a general description of the safe deposit box contents and the liquidation amount, if applicable; and
j) the last contact date with the apparent owner. (Sec. 3)
8. Requires a locator to register with DOR in a form and manner determined by DOR and pay a registration fee in an amount determined by the director. (Sec. 3)
9. Requires a locator applicant to provide their:
a) primary business address and telephone number; and
b) primary point of contact's telephone number and email address. (Sec. 3)
10. Prohibits an applicant from becoming registered if they were convicted of a felony involving dishonesty, deceit, fraud or a breach of fiduciary duty within the prior 10 years. (Sec. 3)
11. Requires DOR to promote and raise awareness of unclaimed property. (Sec. 3)
12. Provides that the locator registration is valid for four years and can be renewed. (Sec. 3)
13. Allows DOR to determine a renewal fee. (Sec. 3)
14. Establishes the Locator Registration Fund, administered by DOR, that consists of the registration and renewal fees and that is used to monitor the locators. (Sec. 3)
15. Prohibits locators from distributing the unclaimed property account information they received from DOR to other locators or persons for compensation. (Sec. 3)
16. Requires for a locator to disclose when they initially communicate with a potential customer that the fee any locator charges is a negotiable rate and is capped at 20%. (Sec. 3)
17. Requires for an agreement between a locator and customer to include a disclosure agreement, signed by the customer and is in its own document without anything else in the document. (Sec. 3)
18. Requires the disclosure agreement to state in 24-point font: The fee that any locator charges is a negotiable rate that is capped at twenty percent pursuant to section 44-327, Arizona Revised Statutes. (Sec. 3)
19. Requires DOR, if an owner has entered into a written agreement that authorizes a registered locator to claim unclaimed property on the owner's behalf or if the owner has sold the right to claim unclaimed property to a locator, to distribute the property or monies in accordance with the written agreement. (Sec. 3)
20. Prescribes that a person who discloses confidential information is guilty of a class 1 misdemeanor and a person who knowingly discloses confidential information is guilty of a class 5 felony. (Sec. 3)
21. Prescribes the initial registration fee and the registration fee for a locator cannot exceed $100 for each registration and renewal. (Sec. 4)
22. Makes technical and conforming changes. (Sec. 1, 2)
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HB 2517
Initials VP/DD Page 0 Vetoed
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