ARIZONA STATE SENATE

Fifty-Sixth Legislature, First Regular Session

FACT SHEET FOR h.b. 2242

~~unclaimed property; locator registration~~

(NOW: unclaimed property; notice; distribution)

Purpose

Eliminates certain distributions from the Estate and Unclaimed Property Fund and requires the Arizona Department of Revenue (ADOR) to publish a notice of abandoned property at least quarterly, as outlined.

Background

ADOR is responsible for selling abandoned property to the highest bidder at a public sale within three years after receiving abandoned property. Property is presumed abandoned if unclaimed by the apparent property owner within a statutorily prescribed time frame which differs by type of property. ADOR must publish a notice at least annually regarding abandoned property that has been paid or delivered to ADOR. The notice must be published or broadcast on social media or radio or by using any other means that ADOR deems likely to attract the attention of the apparent property owner (A.R.S. §§ 44-302; 44-309; and 44-312).

All monies received from the sale of abandoned property are deposited in the Estate and Unclaimed Property Fund and distributed as follows: 1) the first $2,000,000 is deposited in the Seriously Mentally Ill Housing Trust Fund administered by the Arizona Health Care Cost Containment System; 2) the second $2,500,000 is deposited in the Housing Trust Fund administered by the Arizona Department of Housing; 3) the next $24,500,000 is deposited in the ADOR Administrative Fund; 4) monies collected from unclaimed shares and dividends of any corporation incorporated under Arizona law are deposited in the Permanent State School Fund; and 5) monies collected from unclaimed victim restitution payments are deposited in the Victim Compensation and Assistance Fund. All remaining monies are redirected to the state General Fund, except ADOR must retain at least $100,000 to pay abandoned property claims. In FY 2022, the state General Fund received $123,953,407 from unclaimed property distributions (A.R.S.
§ 44-313; JLBC Tax Handbook).

Eliminating all distributions from the Estate and Unclaimed Property Fund except for the $24,500,000 distribution to the ADOR Administrative Fund will result in the transfer of any remaining abandoned property revenues to the state General Fund.

Provisions

1. Eliminates distributions from the Estate and Unclaimed Property Fund to the Housing Trust Fund and the Seriously Mentally Ill Housing Trust Fund.

2. Removes the requirement that ADOR must deposit:

a) unclaimed victim restitution payment monies in the Victim Compensation and Assistance Fund; and

b) unclaimed shares and dividends of any corporation incorporated under Arizona law in the Permanent State School Fund.

3. Requires ADOR to publish or broadcast the abandoned property notice at least quarterly on social media, radio or any other means deemed likely to attract the attention of the apparent property owner.

4. Makes technical and conforming changes.

5. Becomes effective on the general effective date.

House Action

WM 2/15/23 DPA/SE 6-3-1-0

3^rd Read 3/7/23 32-28-0

Prepared by Senate Research

March 9, 2023

MG/ZS/sr