MISSISSIPPI LEGISLATURE
2014 Regular Session
To: Judiciary A
By: Representative Baker
AN ACT TO AMEND SECTION 89-12-37, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT MONEY REMAINING IN THE ABANDONED PROPERTY FUND AND THE ABANDONED PROPERTY CLAIMS PAYMENT FUND AT THE END OF A FISCAL YEAR SHALL NOT LAPSE INTO THE STATE GENERAL FUND, AND ANY INTEREST EARNED FROM THE INVESTMENT OF MONIES IN EITHER FUND SHALL BE DEPOSITED TO THE CREDIT OF THE RESPECTIVE FUND; TO CREATE A TRUST FUND WITHIN THE ABANDONED PROPERTY FUND TO BE KNOWN AS THE ADVANCE MISSISSIPPI FUND; TO PROVIDE THAT ALL UNCLAIMED PROPERTY IN THE ABANDONED PROPERTY FUND THAT IS VALUED AT OR BELOW TEN DOLLARS, AFTER BEING HELD FOR THREE YEARS WITHOUT BEING CLAIMED, SHALL NO LONGER BE CONSIDERED AS UNCLAIMED PROPERTY AND SHALL ESCHEAT TO THE STATE OF MISSISSIPPI AND BE TRANSFERRED INTO THE ADVANCE MISSISSIPPI FUND; TO PROVIDE THAT THE MONIES TRANSFERRED INTO THE ADVANCE MISSISSIPPI FUND SHALL BE THE PRINCIPAL OF THE TRUST FUND, AND THE PRINCIPAL SHALL REMAIN INVIOLATE AND SHALL NEVER BE EXPENDED; TO PROVIDE THAT INTEREST AND INCOME DERIVED FROM INVESTMENT OF THE PRINCIPAL OF THE TRUST FUND MAY BE EXPENDED BY THE TREASURER UPON APPROPRIATION BY THE LEGISLATURE FOR WORKFORCE TRAINING, EDUCATIONAL SCHOLARSHIPS, AND OTHER BENEFICIAL PURPOSES AS DETERMINED BY THE TREASURER; TO AMEND SECTIONS 89-12-5, 89-12-7, 89-12-9, 89-12-11, 89-12-13, 89-12-14, 89-12-15 AND 89-12-16, MISSISSIPPI CODE OF 1972, TO REDUCE FROM FIVE YEARS TO THREE YEARS THE PERIOD OF TIME AFTER WHICH PROPERTY WILL BE PRESUMED TO BE ABANDONED; TO AMEND SECTION 89-12-23, MISSISSIPPI CODE OF 1972, TO REQUIRE HOLDERS OF UNCLAIMED PROPERTY TO REPORT TO THE TREASURER ANNUALLY INSTEAD OF ONCE EVERY THREE YEARS; TO AMEND SECTION 89-12-27, MISSISSIPPI CODE OF 1972, TO DELETE THE REQUIREMENT FOR THE TREASURER TO PUBLISH IN NEWSPAPERS THROUGHOUT THE STATE THE NAMES AND ADDRESSES OF UNCLAIMED PROPERTY OWNERS AND TO MAIL NOTICE TO THOSE PERSONS; TO REQUIRE THE TREASURER TO PUBLISH IN NEWSPAPERS A STATEMENT THAT A LIST OF UNCLAIMED PROPERTY OWNERS' NAMES AND LAST-KNOWN ADDRESSES IS AVAILABLE ON THE WEBSITE OF THE TREASURER'S OFFICE AND ON THE WEBSITE OF THE NEWSPAPER IN WHICH THE NOTICE IS PUBLISHED, IF THE NEWSPAPER MAINTAINS A WEBSITE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 89-12-37, Mississippi Code of 1972, is amended as follows:
89-12-37. (1) All funds
received under the provisions of this chapter shall forthwith be deposited by
the Treasurer in a special fund * * * that is established in the State
Treasury to be designated the "Abandoned Property Fund," except that
the Treasurer shall deposit in a separate special fund * * * that is established in the State
Treasury to be designated the "Abandoned Property Claims Payment
Fund" an amount not exceeding One Hundred Fifty Thousand Dollars
($150,000.00) from which * * * he the Treasurer shall make prompt payment of claims
duly allowed by him or her as hereinafter provided. Before making the
deposits in either special fund, * * * the Treasurer shall record the name
and last known address of each person appearing from the holders' reports to be
entitled to the abandoned property and the name and last known address of each
insured person or annuitant and, with respect to each policy or contract listed
in the report of a life insurance corporation, its number, the name of the
corporation and the amount due. The record shall be available for public
inspection at all reasonable business hours. Money remaining in the
Abandoned Property Fund and the Abandoned Property Claims Payment Fund at the
end of a fiscal year shall not lapse into the State General Fund, and any
interest earned from the investment of monies in either fund shall be deposited
to the credit of the respective fund, except as otherwise provided in subsection
(2) of this section.
(2) There is created within the Abandoned Property Fund in the State Treasury a trust to be known as the Historic Properties Financing Fund, which shall be used as provided in this section. On July 1, 1999, Ten Million Dollars ($10,000,000.00) in the Abandoned Property Fund shall be set aside and placed in the Historic Properties Financing Fund created herein. The principal of the Historic Properties Financing Fund shall remain inviolate within the Abandoned Property Fund, and shall be invested in the same manner as the remainder of the Abandoned Property Fund. The interest and income earned from the investment of the principal of the Historic Properties Financing Fund shall be transferred quarterly to the Mississippi Landmark Grant Program account within the Historic Properties Trust Fund created under Section 39-5-23. The transferred money shall be utilized by the Department of Archives and History for the purposes as specified in Section 39-5-23(3).
(3) Notwithstanding subsections (1) and (2) of this section, the funds reflected by the cancellation of State of Mississippi warrants that constitute part of the Abandoned Property Fund shall be transferred by the State Treasurer back to the original fund source if unclaimed by the owner within the time specified in Section 7-7-42.
(4) (a) There is created within the Abandoned Property Fund in the State Treasury a trust fund to be known as the Advance Mississippi Fund.
(b) All unclaimed property in the Abandoned Property Fund that is valued at or below Ten Dollars ($10.00), after being held for three (3) years without being claimed, shall no longer be considered as unclaimed property and shall escheat to the State of Mississippi and be transferred into the Advance Mississippi Fund.
(c) The monies transferred into the Advance Mississippi Fund under paragraph (b) shall be the principal of the trust fund, and the principal shall remain inviolate and shall never be expended. Interest and income derived from investment of the principal of the trust fund may be expended by the Treasurer upon appropriation by the Legislature for workforce training, educational scholarships, and other beneficial purposes as determined by the Treasurer.
(d) Money remaining in the Advance Mississippi Fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned from the investment of monies in the fund shall be deposited to the credit of the fund.
SECTION 2. Section 89-12-5, Mississippi Code of 1972, is amended as follows:
89-12-5. (1) Subject to the provisions of Sections 89-12-17 and 89-12-19, the following property held or owing by a banking or financial organization or by a business association shall be presumed abandoned:
(a) Any demand,
savings, or matured time deposit made in this state with a banking organization
or financial organization, together with any interest or dividend thereon,
excluding any charges that may have accrued, unless the owner has, within * * *
three (3) years:
(i) Increased or decreased the amount of the deposit, or presented the passbook or other similar evidence of the deposit for the crediting of interest; or
(ii) Corresponded in writing with the banking organization or financial organization concerning the deposit; or
(iii) Otherwise indicated an interest in the deposit as evidenced by a memorandum on file with the banking organization or financial organization.
(b) Any sum payable on
checks certified in this state or on written instruments issued in this state
on which a banking or financial organization or business association is
directly liable, including, but not limited to, certificates of deposit,
drafts, money orders and traveler's checks, that, with the exception of
traveler's checks * * *, has been outstanding for more than * * *
three (3) years
from the date it was payable, or from the date of its issuance if payable on
demand, or, in the case of traveler's checks, that has been outstanding for
more than fifteen (15) years from the date of its issuance, * * *
unless
the owner has within * * * three (3) years, or within fifteen (15) years in the case
of traveler's checks * * *, corresponded in
writing with the banking or financial organization or business association
concerning it, or otherwise indicated an interest as evidenced by a memorandum
on file with the banking or financial organization or business association.
(2) Any certificate of deposit made in this state with a banking organization, together with an interest or dividend thereon, with a maturity date equal to or greater than ten (10) years shall be exempt from the time limit provisions of this chapter.
SECTION 3. Section 89-12-7, Mississippi Code of 1972, is amended as follows:
89-12-7. (1) Subject to
the provisions of Section 89-12-17, funds held or owing by a life insurance
corporation under any life or endowment insurance policy or annuity contract
which has matured or terminated shall be presumed abandoned if unclaimed and
unpaid for more than * * * three (3) years after the funds became due and payable as
established from the records of the corporation.
(2) If a person other than the insured or annuitant is entitled to the funds and no address of such person is known to the corporation or if it is not definite and certain from the records of the corporation what person is entitled to the funds, it shall be presumed that the last known address of the person entitled to the funds is the same as the last known address of the insured or annuitant according to the records of the corporation. This presumption is a presumption affecting the burden of proof.
(3) A life insurance policy not matured by actual proof of the death of the insured according to the records of the corporation shall be deemed to be matured and the proceeds due and payable if:
(a) The insured has attained, or would have attained if he were living, the limiting age under the mortality table on which the reserve is based;
(b) The policy was in force at the time the insured attained, or would have attained, the limiting age specified in paragraph (a) of this subsection; and
(c) Neither the
insured nor any other person appearing to have an interest in the policy has,
within the preceding * * * three (3) years, according to the records of the
corporation:
(i) Assigned, readjusted, or paid premiums on the policy,
(ii) Subjected the policy to loan, or
(iii) Corresponded in writing with the life insurance corporation concerning the policy.
(4) Any funds otherwise payable according to the records of the corporation shall be deemed due and payable although the policy or contract has not been surrendered as required.
SECTION 4. Section 89-12-9, Mississippi Code of 1972, is amended as follows:
89-12-9. Subject to the provisions of Section 89-12-17 of this chapter, the following funds held or owing by any utility shall be presumed abandoned:
(a) Any deposit made
by a subscriber with a utility to secure payment for, or any sum paid in
advance for, utility services to be furnished in this state, less any lawful
deductions, that has remained unclaimed by the person appearing on the records
of the utility entitled thereto for more than * * * three (3) years after the
termination of the services for which the deposit or advance payment was made.
(b) Any sum which a
utility has been ordered to refund and which was received for utility services
rendered in this state, together with any interest thereon, less any lawful
deduction, that has remained unclaimed by the person appearing on the records
of the utility entitled thereto for more than * * * three (3) years after the date
it became payable in accordance with the final determination or order providing
for the refund.
SECTION 5. Section 89-12-11, Mississippi Code of 1972, is amended as follows:
89-12-11. (1) Subject to
the provisions of Section 89-12-17, and except as otherwise provided in
subsections (2) and (5) of this section, stock or other intangible ownership
interest in a business association which is held by the association, the
existence of which is evidenced by records available to the association, is
presumed abandoned if a dividend, distribution or other sum payable as a result
of the interest has remained unclaimed by the owner for * * *
three (3) years and
during that time the owner has not:
(a) Communicated in writing with the association regarding the interest or a dividend, distribution or other sum payable as a result of the interest; or
(b) Otherwise communicated with the association regarding the interest or a dividend, distribution or other sum payable as a result of the interest, as evidenced by a memorandum or other record on file with the association prepared by an employee of the association.
(2) At the expiration of a * * *
three-year period
following the failure of the owner to claim a dividend, distribution or other
sum payable to the owner as a result of the interest, the interest is not
presumed abandoned unless there have been at least five (5) dividends,
distributions or other sums paid during the period, none of which has been
claimed by the owner. If five (5) dividends, distributions or other sums are
paid during the * * * three-year
period, the time period leading to a presumption of abandonment commences on
the date that payment of the first unclaimed dividend, distribution or other
sum became due and payable. If five (5) dividends, distributions or other sums
are not paid during the presumptive period, the period continues to run until
there have been five (5) dividends, distributions or other sums that have not
been claimed by the owner.
(3) The running of the * * *
three-year period
of abandonment ceases immediately upon the occurrence of a communication as
described in subsection (1) of this section. If any future dividend, distribution
or other sum payable to the owner as a result of the interest is subsequently
not claimed by the owner, a new period of abandonment commences and relates
back to the time a subsequent dividend, distribution or other sum became due
and payable.
(4) At the time an interest is presumed abandoned under this section, any dividend, distribution or other sum then held for or owing to the owner as a result of the interest, and not previously abandoned, is presumed abandoned.
(5) This section does not apply
to any stock or other intangible ownership of interest enrolled in a plan that
provides for the automatic reinvestment of dividends, distributions or other
sums payable as a result of the interest unless the records available to the
State Treasurer show, with respect to any intangible ownership interest not
enrolled in the reinvestment plan, that the owner has not within * * *
three (3) years
communicated in any manner described in subsection (1) of this section.
(6) Notwithstanding anything in this section or any other section in this chapter to the contrary, the property presumed abandoned under this chapter shall not include capital credits or patronage refunds offered for payment by nonprofit cooperative electric power associations, nonprofit cooperative water and sewer associations, or nonprofit agricultural cooperative marketing associations, but rather such unclaimed funds shall be used for the benefit of the general membership of such associations.
SECTION 6. Section 89-12-13, Mississippi Code of 1972, is amended as follows:
89-12-13. Subject to the
provisions of Section 89-12-17, any intangible personal property and any income
or increment thereon, held in a fiduciary capacity for the benefit of another
person shall be presumed abandoned unless the owner has, within * * *
three (3) years
after it became payable or distributable, increased or decreased the principal,
accepted payment of principal or income, corresponded in writing concerning the
property or otherwise indicated an interest as evidenced by a memorandum or
other record on file with the fiduciary.
SECTION 7. Section 89-12-14, Mississippi Code of 1972, is amended as follows:
89-12-14. (1) All
intangible property, including, but not limited to, any interest, dividend, or
other earnings thereon, less any lawful charges, held by a business
association, federal, state or local government or governmental subdivision,
agency or entity, or any other person or entity, regardless of where the holder
may be found, if the owner has not claimed or corresponded in writing
concerning the property within * * * three (3) years after the date
prescribed for payment or delivery, is presumed abandoned and subject to the
custody of this state as unclaimed property if:
(a) The last known address of the owner is unknown; and
(b) The person or entity originating or issuing the intangible property is this state or any political subdivision of this state, or is incorporated, organized, created or otherwise located in this state.
(2) The provisions of subsection (1) of this section shall not apply to property that is or may be presumed abandoned and subject to the custody of this state pursuant to any other provision of law containing a dormancy period different than that prescribed in subsection (1) of this section.
(3) The provisions of subsection (1) of this section shall apply to all property held on July 1, 1991, or at any time thereafter, regardless of when such property became or becomes presumptively abandoned.
(4) Insofar and only
insofar as funds reflected by the cancellation of State of Mississippi warrants
are unclaimed and presumed abandoned, the State Treasurer shall transfer such
funds out of the Abandoned Property Fund established by Section 89-12-37 to the
original fund source after the expiration of * * * three (3) years as required
herein.
SECTION 8. Section 89-12-15, Mississippi Code of 1972, is amended as follows:
89-12-15. All intangible
personal property not otherwise covered by the provisions of this chapter,
including any income or increment thereon and deducting any charges that may
have accrued, that is held in the ordinary course of the holder's business and
has remained unclaimed by the owner for more than * * * three (3) years after it became
payable or distributable shall be presumed abandoned.
SECTION 9. Section 89-12-16, Mississippi Code of 1972, is amended as follows:
89-12-16. (1) All tangible
personal property or intangible personal property, including choses in action
in amounts certain, and all debts owed or entrusted funds or other property
held by the federal government, or any federal agency, or any officer, or
appointee thereof, shall be presumed abandoned in this state if the last known
address of the owner of the property is in this state and the property has
remained unclaimed for * * * five (5)three (3) years.
(2) This section shall apply to all abandoned property held by the federal government, or any federal agency, or any officer, or any appointee thereof, on July 1, 1991, or at any time thereafter, regardless of when such property became presumptively abandoned.
SECTION 10. Section 89-12-23, Mississippi Code of 1972, is amended as follows:
89-12-23. (1) Every person holding funds or other intangible personal property presumed abandoned under the provisions of this chapter shall report to the Treasurer with respect to the property as hereinafter provided.
(2) The report shall be verified, shall be on a form prescribed or approved by the Treasurer, and shall include:
(a) Except with respect to traveler's checks and money orders, the name, if known, and last known address, if any, of each person appearing from the records of the holder to be the owner of any property of the value of more than One Hundred Dollars ($100.00) presumed abandoned under the provisions of this chapter;
(b) In case of unclaimed funds of life insurance corporations, the full name of the insured or annuitant and his last known address according to the life insurance corporation's records;
(c) The nature and identifying number, if any, or description of the property and the amount appearing from the records to be due, except that items of value under One Hundred Dollars ($100.00) each may be reported in aggregate;
(d) Except for any property reported in the aggregate, the date when the property became payable, demandable, or returnable, and the date of the last transaction with the owner with respect to the property; and
(e) Other information which the Treasurer prescribes by regulation as necessary for the administration of this chapter.
(3) If the person holding property presumed abandoned under the provisions of this chapter is a successor to other persons who previously held the property for the owner, or if the holder has changed his name while holding the property, he shall file with his report all prior-known names and addresses of each holder of the property.
(4) The report shall be
filed annually * * * before November 1 of each year * * * as of June 30 next
preceding. The Treasurer may postpone the reporting date upon written request
by any person required to file a report.
(5) If the holder of property presumed abandoned under the provisions of this chapter knows the whereabouts of the owner and if the owner's claim has not been barred by the statute of limitations, the holder shall, before filing the required report, endeavor to communicate with the owner and take reasonable steps to prevent abandonment from being presumed. The mailing of notice to the last known address of the owner by the holder shall constitute compliance with this subsection and no further act on the part of the holder shall be necessary.
(6) Verification, if made by a partnership, shall be executed by a partner; if made by an unincorporated association or private corporation, by an officer; and if made by a public corporation, by its chief fiscal officer.
(7) Every person who is requested in writing by the Treasurer shall file a report stating that such person is not holding any abandoned property which is reportable pursuant to the provisions of this section.
(8) The initial report filed under this chapter shall include all items of property that would have been presumed abandoned if this chapter had been in effect since July 1, 1969, and all such property shall be subject to the provisions of this chapter.
SECTION 11. Section 89-12-27, Mississippi Code of 1972, is amended as follows:
89-12-27. (1) Within * * *
one
hundred eighty (180) days from the filing of the report required by Section
89-12-23, the Treasurer shall cause notice to be published in a newspaper
having general circulation in the county of this state in which is located the
last known address of any person * * * who is the owner of
unclaimed property. If no address is listed or if the address is outside
this state, the notice shall be published in the county in which the holder of
the * * * unclaimed
property has his or her principal place of business in this state.
(2) The published notice
shall be entitled "Notice of * * * Unclaimed Property Owners," and shall contain:
(a) * * *
A statement that a list of
unclaimed property owners' names in alphabetical order and last
known addresses, if any, * * * of persons listed in the report and entitled to notice in the county as
specified in subsection (1) of this sectionis available on the
website of the Treasurer's office and on the website of the newspaper in which
the notice is published, if the newspaper maintains a website;
(b) A statement that information concerning the amount or description of the property and the name and address of the holder may be obtained by any persons possessing an interest in the property by addressing an inquiry to the Treasurer; and
(c) A statement that any person claiming an interest in the property must file a proof of claim with the Treasurer as set forth in Section 89-12-39.
(3) The Treasurer shall not
be required to publish * * * in thea notice * * * in any county in which the only item
of unclaimed property is less than One Hundred Dollars ($100.00) in
value, unless * * * the
Treasurer deems that publication to be in the public interest.
* * *
SECTION 12. This act shall take effect and be in force from and after July 1, 2014.