ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

House: WM DP 7-3-0-0

HB2856: unclaimed property locators; registration

Sponsor:  Representative Carroll, LD 22

Caucus & COW

Overview

Allows a registered locator to receive unclaimed property account information from the Department of Revenue (DOR) and 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 agreements are void and unenforceable if the primary purpose is to locate, deliver, recover or assist in the recovery of unclaimed property 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)

Provisions

1.    ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteRemoves language to render agreements to locate unclaimed property as void and unenforceable. (Sec. 1)

2.    Allows an agreement to be entered into to locate unclaimed property if the agreement:

a)    Is in at least ten-point type;

b)    Lists the unclaimed property account number;

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.    Provides that fees or payments my not exceed 30% of the unclaimed property value unless recovery requires judicial determination of ownership. (Sec. 2)

4.    States an agreement is unenforceable if the compensation is more than 30% of the unclaimed property value. (Sec. 2)

5.    Requires DOR to provide all unclaimed property account information to a registered locator. (Sec. 3)

6.    Prohibits DOR from providing unclaimed property account information to an unregistered locator. (Sec. 3)

7.    Allows DOR to charge a fee for each information request. (Sec. 3)

8.    Requires DOR to provide specific unclaimed property account information on its website in a searchable format. (sec. 3)

9.    Allows DOR to determine the form and manner in which a locator becomes registered. (Sec. 3)

10.  Allows DOR to charge a registration fee. (Sec. 3)

11.  Prohibits a locator from becoming registered if an individual, officer, owner or employee was convicted of a felony involving dishonesty, deceit, fraud or a breach of fiduciary duty within the prior 10 years. (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 to other locators or persons. (Sec. 3)

16.  Allows DOR to distribute property or money in accordance with a property owner's written agreement that authorizes a registered locator to claim the property. (Sec. 3)

17.  Requires the written agreement to be executed by the owner and filed with DOR. (Sec. 3)

18.  Makes technical and conforming changes. (Sec. 1, 2)

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22.                    HB 2856

23.  Initials VP  Page 0 Caucus & COW

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