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News & Press: State Legislative and Regulatory News

AL Governor signs HB 112

Thursday, April 25, 2013  
Posted by: Toni Nuernberg
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The Governor of Alabama signed HB 112 into law on Apr. 18, 2013. The effective date is the first day of the third month following governor approval, which would be July 1, 2013.  The enacted bill includes the following:

  • Specifically, the bill eliminates the stipulation that automatically renewable deposits in banks are reportable deemed matured upon initial date maturity. Rewrites the provision to state that bank demand, savings or time deposits, including deposits that are automatically renewable are reportable 3 years after the date of maturity, "as extended from time to time” or the date of last indication of interest by the owner. .
  • Provides for State issued warrants’ dormancy periods to be consistent with State Warrant Statutes (which is currently one year).
  • Requires outstanding debit cards or other payment instruments issued by the state of Alabama to be reported as unclaimed property.
  • Requires reports to be filed electronically, and the funds to be remitted electronically. It requires the state to establish rules concerning this requirement, and allows for exceptions upon written request.
  • Requires separate reports for tangible and intangible property.
  • Requires the report to be verified and balanced before it is submitted to the state.
  • Changes the term from warrants to payment instruments pertaining to those issued by the State of Alabama.
  • Allows the state to establish aggregate reporting and claims amounts by rule and eliminates the current $50 aggregate limit state in the statute
  • Deletes the requirement for holders to include former names and addresses of previous owners and/or holders.
  • Amends the time frame for due diligence to less than 60 days before filing the report from not less than "60 but no more that 120 days” before filing the report
  • Permits the state to increase the due diligence minimum (now $50) by rule.
  • Deletes the provision stating that issuers or transfer agents acting on behalf of issuers that report and remit as required by the UP law are not liable to the apparent owner and must be indemnified against claims. Allows holders to reestablish an account for owners who were subsequently found after remitting their property to the state; and adds a provision for permitting reimbursement of a holder when the holder has shown that the property was remitted in error.
  • Provides that when holders remit in good faith, but the property is subsequently claimed by a person or another state claims the property, the payment/delivery of the property to Alabama may be pleaded as an absolute bar to any action brought against the holder. The holder is relieved of and held harmless against any liabilities for claims.
  • Provides for reimbursement for the cost of drilling safe deposit boxes if that amount is included in the unclaimed property report.
  • Clarifies that surviving spouses, parents and/or children are entitled to claim property.
  • Adds a provision to accept other documentation for claimants to submit to prove their entitlement to the property.
  • Amends the provision that allows holders to report early, or who reported even when they may be exempt from reporting, to deem any such remitted property to be handled in the same manner as all other abandoned property.
  • Requires finders to provide owners with an agreement that clearly sets forth the terms of the finder’s conditions, including that the property is in the custody of the State of Alabama Treasurer’s office, states the compensation fee and any other deductions, and limits compensation to a maximum of 10% of the claim value.

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