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H. 3608
STATUS INFORMATION
General Bill
Sponsors: Rep. Scarborough
Document Path: l:\council\bills\ggs\22950htc05.doc
Introduced in the House on February 23, 2005
Currently residing in the House Committee on Labor, Commerce and Industry
Summary: Maximum three-year period property is presumed abandoned
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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2/23/2005 House Introduced and read first time HJ-8
2/23/2005 House Referred to Committee on Labor, Commerce and Industry
HJ-8
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND SECTIONS 27-18-30, 27-18-50, 27-18-60, 27-18-70, 27-18-80, 27-18-85, 27-18-90, 27-18-110, 27-18-140, AS AMENDED, 27-18-150, AS AMENDED, AND 27-18-170, CODE OF LAWS OF SOUTH CAROLINA, 1976, ALL RELATING TO TYPES OF PROPERTY AND THE TIME LONGER THAN THREE YEARS AFTER WHICH THE PROPERTY IS PRESUMED ABANDONED FOR PURPOSES OF THE UNIFORM UNCLAIMED PROPERTY ACT, SO AS TO PROVIDE A MAXIMUM THREE-YEAR PERIOD AFTER WHICH ALL SUCH PROPERTY IS PRESUMED ABANDONED, TO REVISE THE CRITERIA THAT GIVE RISE TO THE PRESUMPTION OF ABANDONMENT OF SHARES OF STOCK AND BUSINESS INTERESTS, TO AMEND SECTION 27-18-180, AS AMENDED, RELATING TO REPORTING OF UNCLAIMED PROPERTY AND NOTICE TO APPARENT OWNERS, SO AS TO REQUIRE ADDITIONAL IDENTIFICATION IN REPORTS AND TO REQUIRE NOTICE TO APPARENT OWNERS AT LEAST SIXTY DAYS BEFORE THE HOLDER REPORTS THE PROPERTY, AND TO AMEND SECTION 27-18-250, RELATING TO CLAIMS FOR UNCLAIMED PROPERTY, SO AS TO UPDATE THE REFERENCE RELATING TO THE RATE OF INTEREST THAT MUST BE PAID ON THE PROPERTY, AND TO APPROPRIATE THE FIRST TWENTY MILLION DOLLARS IN REVENUES ATTRIBUTABLE TO THIS ACT FOR THE CAPERS HALL REPLACEMENT AND RENOVATION PROJECT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Subsections (A) and (C) of Section 27-18-30 of the 1976 Code are amended to read:
"(A) Except as otherwise provided by this chapter, all intangible property, including any income or increment derived therefrom, less any lawful charges, that is held, issued, or owing in the ordinary course of a holder's business and has remained unclaimed by the owner for more than five three years after it became payable or distributable is presumed abandoned.
(C) Except as otherwise provided by this chapter, all patronage allocations less lawful charges that are held, issued, or owing by entities organized under the provisions of Chapter 49 of Title 33 that remain unclaimed by the owner for more than seven three years after becoming payable or distributable are presumed abandoned."
SECTION 2. Subsections (A) and (B) of Section 27-18-50 of the 1976 Code are amended to read:
"(A) Subject to subsection (D), any a sum payable on a travelers check that has been outstanding for more than fifteen three years after its issuance is presumed abandoned unless the owner, within fifteen three years, has communicated in writing with the issuer concerning it or otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee of the issuer.
(B) Subject to subsection (D), any a sum payable on a money order or similar written instrument, other than a third-party bank check, that has been outstanding for more than seven three years after its issuance is presumed abandoned unless the owner, within seven three years, has communicated in writing with the issuer concerning it or otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee of the issuer."
SECTION 3. Section 27-18-60(A) of the 1976 Code is amended to read:
"(A) Any A sum payable on a check, draft, or similar instruments, except those subject to Section 27-18-50, on which a banking or financial organization is directly liable, including a cashier's check and a certified check, which has been outstanding for more than five three years after it was payable or after its issuance if payable on demand, is presumed abandoned, unless the owner, within five three years, has communicated in writing with the banking or financial organization concerning it or otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee thereof."
SECTION 4. Section 27-18-70(A) of the 1976 Code is amended to read:
"(A) Any A demand, savings, or matured time deposit with a banking or financial organization, including a deposit that is automatically renewable, and any funds paid toward the purchase of a share, a mutual investment certificate, or any other interest in a banking or financial organization is presumed abandoned unless the owner, within five three years has:
(1) in the case of a deposit, increased or decreased its amount or presented the passbook or other similar evidence of the deposit for the crediting of interest;
(2) communicated in writing with the banking or financial organization concerning the property;
(3) otherwise indicated an interest in the property as evidenced by a memorandum or other record on file prepared by an employee of the banking or financial organization;
(4) owned other property to which item (1), (2), or (3) applies and if the banking or financial organization communicates in writing with the owner with regard to the property that would otherwise be presumed abandoned under this subsection at the address to which communications regarding the other property regularly are sent; or
(5) had another relationship with the banking or financial organization concerning which the owner has:
(a) communicated in writing with the banking or financial organization; or
(b) otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee of the banking or financial organization and if the banking or financial organization communicates in writing with the owner with regard to the property that would otherwise be abandoned under this subsection at the address to which communications regarding the other relationship regularly are sent."
SECTION 5. Section 27-18-80(A) of the 1976 Code is amended to read:
"(A) Funds held or owing under any a life or endowment insurance policy or annuity contract that has matured or terminated are presumed abandoned if unclaimed for more than five three years after the funds became due and payable as established from the records of the insurance company holding or owing the funds, but property described in subsection (C)(2) is presumed abandoned if unclaimed for more than two years."
SECTION 6. Section 27-18-85 of the 1976 Code, as added by Act 58 of 2003, is amended to read:
"Section 27-18-85. Unclaimed property payable or distributable in the course of a demutualization of an insurance company is presumed abandoned five three years after the earlier of the date:
(1) of last contact with the policyholder; or
(2) the property became payable or distributable.
This section does not apply to amounts due and owing to the State or a political subdivision of the State."
SECTION 7. Section 27-18-90(B) of the 1976 Code is amended to read:
"(B) Any A 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 charges, that has remained unclaimed by the person appearing on the records of the utility entitled thereto for more than five three years after the date it became payable in accordance with the final determination or order providing for the refund is presumed abandoned."
SECTION 8. Section 27-18-110 of the 1976 Code is amended to read:
"Section 27-18-110. (A) Except as provided in subsections (B) and (E), stock or other intangible ownership interest in a business association, the existence of which is evidenced by records available to the association, is presumed abandoned and, with respect to the interest, the association is the holder, if a dividend, distribution, or other sum payable as a result of the interest has remained unclaimed by the owner for seven years and the owner within seven years has not:
(1) communicated in writing with the association regarding the interest or a dividend, distribution, or other sum payable as a result of the interest; or
(2) 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.
(B) At the expiration of a seven-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 seven dividends, distributions, or other sums paid during the period, none of which has been claimed by the owner. If seven dividends, distributions, or other sums are paid during the seven-year period, the period leading to a presumption of abandonment commences on the date payment of the first such unclaimed dividend, distribution, or other sums not paid during the presumptive period, the period continues to run until there have been seven dividends, distributions, or other sums that have not been claimed by the owner.
(C) The running of the seven-year period of abandonment ceases immediately upon the occurrence of a communication referred to in subsection (A). 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.
(D) 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 presumed abandoned, is presumed abandoned.
(E) This chapter does not apply to any stock or other intangible ownership 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 administrator of the plan show, with respect to any intangible ownership interest not enrolled in the reinvestment plan, that the owner has not within seven years communicated in any manner described in subsection (A).
(A) Stock or other equity interest in a business association is presumed unclaimed three years after the earliest of:
(1) the date of the most recent dividend, stock split, or other distribution unclaimed by the apparent owner;
(2) the date of a statement of account or other notification or communication that was returned as undeliverable; or
(3) the date the holder discontinued mailings, notifications, or communications to the apparent owner.
(B) Unmatured or unredeemed debt, other than a bearer bond or an original-issue discount bond, is presumed unclaimed three years after the date of the most recent interest payment unclaimed by the owner.
(C) Matured or redeemed debt is presumed unclaimed three years after the date of maturity or redemption.
(D) At the time property is presumed unclaimed under subsection (A) or (B), any other property right accrued or accruing to the owner as a result of the property interest and not previously presumed unclaimed is also presumed unclaimed.
(E) The running of the three-year period ceases if the person:
(1)(a) communicates in writing with the association or its agent regarding the interest or a dividend, distribution, or other sum payable as a result of the interest; or
(b) otherwise communicates 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 or its agent.
(2) presents an instrument issued to pay interest or a dividend or other cash distribution. If a 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 in which the property is presumed unclaimed commences and relates back only to the time a subsequent dividend, distribution, or other sum became due and payable.
(F) At the same time any interest is presumed unclaimed under this section, a dividend, distribution, or other sum then held for or owing to the owner as a result of the interest, is presumed unclaimed."
SECTION 9. Section 27-18-130(A) of the 1976 Code is amended to read:
"(A) Intangible property and any income or increment derived therefrom held in a fiduciary capacity for the benefit of another person is presumed abandoned unless the owner, within five three years after it has become payable or distributable, has increased or decreased the principal, accepted payment of principal or income, communicated concerning the property, or otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by the fiduciary."
SECTION 10. Section 27-18-140 of the 1976 Code, as last amended by Act 264 of 1992, is further amended to read:
"Section 27-18-140. Intangible property held for the owner by a court, state, or other government, governmental subdivision or agency, public corporation, or public authority which remains unclaimed by the owner for more than five three years after becoming payable or distributable is presumed abandoned."
SECTION 11. Section 27-18-150 of the 1976 Code, as last amended by Act 43 of 2001, is further amended to read:
"Section 27-18-150. (A) A credit memo issued in the ordinary course of an issuer's business which remains unclaimed by the owner for more than five three years after becoming payable or distributable is presumed abandoned.
(B) In the case of a credit memo, the amount presumed abandoned is the amount credited to the recipient of the memo."
SECTION 12. Section 27-18-170 of the 1976 Code is amended to read:
"Section 27-18-170. All tangible and intangible property held in a safe deposit box or any other safekeeping repository in this State in the ordinary course of the holder's business and proceeds resulting from the sale of the property permitted by other law, which remain unclaimed by the owner for more than five three years after the lease or rental period on the box or other repository has expired, are presumed abandoned."
SECTION 13. Subsections (B)(1) and (E) of Section 27-18-180 of the 1976 Code, as last amended by Act 248 of 1996, are further amended to read:
"(1) except with respect to travelers checks and money orders, the name, if known, and last known address, if any, social security number or taxpayer identification number, if readily ascertainable, of each person appearing from the records of the holder to be the owner of property of the value of fifty dollars or more is presumed abandoned under this chapter;
(E) Not more than one hundred twenty days and not fewer than sixty days before filing the report required by this section, the holder in possession of property presumed abandoned and subject to custody as unclaimed property under this chapter shall send written notice to the apparent owner at his last known address informing him that the holder is in possession of property subject to this chapter if:
(1) the holder has in its records an address for the apparent owner which that the holder's records do not disclose to be inaccurate;
(2) the claim of the apparent owner is not barred by the statute of limitations; and
(3) the property has a value of fifty dollars or more."
SECTION 14. Section 27-18-250(C) of the 1976 Code is amended to read:
"(C) If a claim is allowed, the administrator shall pay over or deliver to the claimant the property or the amount the administrator actually received or the net proceeds if it has been sold by the administrator together with any additional amount required by Section 27-18-220. If the claim is for property presumed abandoned under Section 27-18-110 which was sold by the administrator within three years after the date of delivery, the amount payable for that claim is the value of the property at the time the claim was made or the net proceeds of sale, whichever is greater. If the property claimed was interest-bearing to the owner on the date of surrender by the holder, the administrator also shall pay interest at a rate provided in Section 12-54-20 12-54-25 or any lesser rate the property earned while in the possession of the holder. Interest begins to accrue when the property is delivered to the administrator and ceases on the earlier of the expiration of ten years after delivery or the date on which payment is made to the owner. No interest on interest-bearing property is payable for any period before the effective date of this chapter."
SECTION 15. Of revenues to the general fund of this State attributable to the acceleration of the presumption of abandonment provided in this act, the first twenty million dollars is automatically appropriated for the Capers Hall replacement and renovation in Charleston County.
SECTION 16. This act takes effect July 1, 2005.
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