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Senate Engrossed |
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State of Arizona Senate Fifty-third Legislature Second Regular Session 2018
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SENATE BILL 1412 |
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AN ACT
amending title 10, chapter 19, article 2, Arizona Revised Statutes, by adding section 10‑2071; amending sections 44-321 and 44-329, Arizona Revised Statutes; relating to unclaimed property.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 10, chapter 19, article 2, Arizona Revised Statutes, is amended by adding section 10-2071, to read:
10-2071. Unclaimed patronage capital credits; fees; uses; exemption; definition
A. A patronage capital credit retirement payment or fee payment from a cooperative to its member or former member is an unclaimed capital credit or fee if the credit or fee remains unclaimed for a period of two years after the payment was made available to the member or former member.
B. All unclaimed capital credits or fees are exempt from title 44, chapter 3, and a cooperative may retain or use all unclaimed capital credits or fees for any lawful purpose.
C. A cooperative may retain, use or assign all unclaimed capital credits or fees for any lawful purpose if the purpose is consistent with the cooperative's bylaws and is specified by the cooperative's board of directors.
D. The cooperative shall pay a verifiable unclaimed capital credit or fee claim by a member or former member originating on, before and after the effective date of this section.
E. Each cooperative shall maintain a searchable list on its website that contains the name and last known address of each member or former member appearing from the cooperative's records to be the owner of the unclaimed capital credits or fees of fifty dollars or more and instructions on how to claim the unclaimed capital credits or fees. The list shall include records from and after December 31, 2001.
F. For the purposes of this section, "patronage capital" includes all amounts received by a cooperative from sales of electric power, energy distribution services or other services to members in excess of the cooperative's cost of furnishing electric power, energy distribution services or other services to members and other margins as determined by the board of directors of the cooperative.
Sec. 2. Section 44-321, Arizona Revised Statutes, is amended to read:
44-321. Periods of limitation
A. The expiration of a period of limitation on the owner's right to receive or recover property, whether specified by contract, statute or court order, does not preclude the property from being presumed abandoned or affect a duty to file a report or to pay or deliver or transfer property to the department as required by this chapter.
B. An individual, corporation, business association or other organization may not act through an amendment of articles of incorporation, an amendment of bylaws, a private agreement or any other means to do any of the following:
1. Take or divert monies or personal property into income.
2. Divide monies or personal property among patrons or stockholders that are able to be located.
3. Divert monies or personal property by any other method for the purpose of circumventing the unclaimed property process.
B. C. The department shall not begin an action or proceeding to enforce this chapter in regard to the reporting, delivery or payment of property more than four years after the holder identified the property in a report filed with the department or gave express notice to the department of a dispute regarding the property. If a holder omits from a report any amount of property that is properly includible and that is in excess of twenty‑five per cent percent of the amount of property stated in the report, the department may begin an action or proceeding to enforce this chapter at any time within six years after the report was filed. If there is no report or other express notice, the period of limitation is tolled. The period of limitation is also tolled if the holder files a fraudulent report.
Sec. 3. Section 44-329, Arizona Revised Statutes, is amended to read:
44-329. Transitional provisions
A. An initial report filed pursuant to this chapter for property that was not required to be reported before the effective date of this chapter January 1, 2001 but that is subject to this chapter shall include all items of property that would have been presumed abandoned within ten years before the effective date of this chapter January 1, 2001 as if this chapter had been in effect during that period.
B. This chapter does not relieve a holder of a duty that arose before the effective date of this chapter January 1, 2001 to report, pay or deliver property. Except as provided in section 44‑321, subsection B C, a holder who did not comply with the law in effect before the effective date of this chapter January 1, 2001 is subject to the applicable provisions for enforcement and penalties that were in effect under the prior law.