S.B. 155 Unclaimed Property Amendments: transcript

Thank you Mr. Chair. I did see I just left, uh, two 15. I did see Senator Baldry waiting to testify in there. Um, and so this is a bill that, uh, was requested by, I believe it was the division of finance. And, um, it's somewhat technical in nature, but what it does is it provides for the state tax commission to share certain identifying information with the unclaimed property administrator for the purpose of returning unclaimed property. So again, this isn't like a privacy thing where we're going after you, they're like, Hey, we've got somebody's property and we wanna give it back to them. Um, but we need some more information to help find them. And it modifies the dates on which unclaimed property held in certain tax deferred and tax exempt accounts is presumed abandoned. And then it makes some other technical changes. So for anybody listening in the audience, um, there is a website you can go to and type in your name. And I think sometimes it asks for your birthday and you can actually find if the state is, um, holding unclaimed property for you. I've actually found some for myself. I found some from my friends and family when I was playing around with a website, um, one day. And, uh, you know, sometimes it's a hundred bucks, sometimes it's more, sometimes it's, you know, nine 50. Um, but, um, um, with that, uh, as part of my presentation, I'd like to kick it to our, um, constitutional officer, Marlon Oaks, our state duly elected state treasurer to, to, to also comment on the bill. Great. Thank

Great. Thank you. Yeah. Marlow Oaks State Treasurer. Thank you, uh, chair re members of the committee for allowing me to join this afternoon. Um, and thank you Senator Weiler, my own senator for, uh, helping with this and we're with my office on this. So really this is an, an important, um, bill that allows unclaimed property division to be more efficient, um, in returning property of the rightful owners and, and really aligns with, uh, changes in federal policy as well. So the first substitute does three things. First, the bill adds email addresses to the data fields received from the tax commission for data matched unclaimed property. Um, this data field was inadvertently o omitted in a prior statutory update three years ago. Email contact will enhance outreach efforts, particularly considering challenges we've had with the US Postal Service return mail. Uh, and then also having email addresses will support faster and more efficient reunification of funds with rightful owners. Second, the bill makes it easier to pay smaller air claims without exposing the state to liability. And finally, the bill updates the revised Uniform Unclaimed Property Act to align with changes to the IRS required minimum distribution age for tax diverted retirement accounts like 4 0 1 Ks and IRAs. Um, instead of specifying an age in state law, this bill references IRS requirements ensuring automatic compliance with future federal changes. So with that, I'm happy to take questions.

Yeah, I would, I would move that we delete and title and Body Senate bill 1 55 and replace with first substitute Senate bill 1 55.

My name is Brooke Stevens and I was an asset recovery specialist for eight years in California. Where I helped return is cheated property, um, to their owners or their heirs. And it has always, if you're opening up the code, I have a recommendation. It has always confused me why the amounts are not disclosed in Utah because there were a lot of people who would never have gotten their money back if we as air finders were not able to assist them because they didn't open their mail and they didn't trust it. For instance, I Uintah Spain to help a woman get it back because she didn't. I speak Spanish, she didn't speak English and she didn't trust it. And I just think disclosing the amounts and allowing air finders will help more people get their money, especially in the case when they're deceased. Because helping them put together all of that paperwork was one of our specialties.

This is a motion to approve Senate bill. I just came in halfway through. I read 1 55 first Substitute Senate Bill 1 55. And, uh, if anybody has not looked at this site, you should all look at, it's amazing. Tell, tell 'em the URL if I could. Mr. Chair, can you tell 'em the URL? The URL my cash Do Utah dot gov. There you go. I'm looking right now and I can see that my mother has unclaimed funds and it's actually an exact amount. So I know some don't give the exact amount, but this one actually shows the exact amount, $168 for a home buyer warranty. So there you go.

Yeah, I appreciate, um, Senator ML'S motion and his, um, explanation. It often is insurance companies and others who are holding like cash deposits that are turning this property over to the treasurer's office. I did wanna note, um, the substitute that you've adopted. In addition to what I said in my original pre uh, presentation, it also provides for the filing of a single claim by multiple claimants for the unclaimed property of a decedent and establishes re uh, filing requirements for a claim that involves unclaimed property of a decedent. So if, if anybody within the sound of my voice, if they've had a parent die or a sibling die, you might wanna check for them and see if there's some unclaimed property for them that could be claimed for the family. Thank you.

I'm gonna waive, thank you. Alright,

Thank you. Uh, Mr. Chair. I had some misunderstanding of my floor sponsor. I thought he was gonna present this this morning. I, I'm with a man that needs no introduction. Our state, um, treasurer, this bill, um, provides that the state tax commission will share identifying information with the unclaimed property administrator for purposes of returning unclaimed property. It modifies the dates on which the unclaimed property held in certain tax deferred and tax exempt accounts as presumed abandoned. And it provides for the filing of a single claim by multiple claimants for unclaimed property, um, of a decedent. Lastly, it establishes a filing requirement for a claim that involves unclaimed property of a decedent. Um, with that, I'll kick it to Mr. Oaks to add any clarifying information. Great.

Thank you. Uh, Senator Weiler. And, uh, thank you Chair Lyon, vice Chair Lyon, uh, committee. It's a a pleasure to be with you and thank you for the opportunity to talk about SB 1 55. Um, and appreciate my senator, uh, Senator Weiler working my, with my office on this. So, um, really this is a simple, but an important bill that allows unclaimed property to more, uh, the division to more efficiently return, um, property, mostly in the form of money. When we say unclaimed property, some people get confused. It's not really real estate, it's more money. Um, but that's the nomenclature. So, um, so the bill does a couple of, uh, or three things actually. And the, we're talking to the first substitute. Um, the bill adds email addresses to the data fields received from the tax commission, um, for data matched unclaimed property. So this data field was inadvertently, uh, omitted in a prior statutory update three years ago. Uh, email contact will obviously enhance our ability to, uh, in our outreach efforts, particularly considering challenges that we've had with the postal service, uh, lately with returned mail. Um, so when electronic payments, uh, soon become available, having EMO addresses will support faster and more efficient, um, payment to rightful owners. Um, the, my Cash Now program resulting from the 2023 legislation was temporarily, uh, halted, um, due to staffing shortages and, and a higher than expected volume of return mail. So, email communication could really help mitigate these challenges by offering a faster, more reliable way to contact rifle owners. Second, the bill makes it easier to pay smaller error claims without exposing the state to liability. So it clarifies that heirs are considered owners. It also allows us to distribute the money to one or more claimants on behalf of all owners when the estate qualifies for a small estate, a, uh, small estate affidavit process, which is, uh, claims under a hundred thousand dollars. So those claimants have to provide the small, uh, estate affidavit, sign a form, acknowledging receipt of the money in a fiduciary capacity, that they're receiving it in the, in a fiduciary capacity, and that they agree to distribute funds according to each owner's share and indemnify the state. When this procedure is followed, the state and its agents are protected from liability and any other o owners still re retain a cause of action against the claimant if the money isn't properly distributed. Third, the bill updates the Revised Uniform Unclaimed Property Act or rupa to align with changes to the IRS required minimum distribution age for tax deferred retirement accounts such as 4 0 1 Ks and IRAs instead of specifying an age in state law. This bill references IRS requirements ensuring automatic compliance with future federal changes. This is a technical correction to the Rupa language adopted in 2017. With that, thank you. That concludes our presentation.

Thank you Mr. Chair. So I've got a question for our treasurer then. Um, so when it comes to required minimum distributions, do you have to do those each year that that money is held for a decedent? That was post seven? Well, now 73. Do you, do you have to do those to, to satisfy the federal requirement for distribution? I, I,

I do not believe so.

Okay. I was gonna say that would be news to me. I didn't, I was hoping you didn't have to. 'cause that's a lot of, that's a lot of keeping track of. Yeah. Okay. That's, that's helpful.

Thank you Mr. Chair. I'd like to make a motion to pass out favorably second substitute Senate bill 1 55 Unclaimed Property Amendments.

I will make a motion that we place this bill on consent. Would you like to speak to that?

Um, I, I would love that, but, um, I told Marlo he would have to ask, so.

Thank you Mr. President Pro tem Senate Bill 1 55, uh, provides for the State tax commission to share certain identifying information with the unclaimed property administrator for the purpose of returning unclaimed property. And, um, it provides some technical changes, uh, and allows the filing of a single claim by multiple claimants for unclaimed property of a decedent. Uh, with that I'll yield to any questions.

Thank you Mr. President. I I have a second sub and all it does, it doesn't really make any substantive changes. It just says that the commission will not be liable for any actions arising from the unclaimed property administrators use of information that the commission provides to them. So with that, I'd like to move to delete first substitute Senate bill 1 55 entitled and Body and replace it with second substitute Senate Bill 1 55. Okay. Thank You. Motion to sub Motion to give, give that motion one more time. Motion to delete First substitute Senate bill 1 55 entitled Body and replace it with second substitute Senate Bill 1 55. Thank you. I place the motion. All in favor say aye. Aye. Any opposed? Roll the motion passes now. The bill substituted the bill. Thank you. Like I said, that's a very minor, um, sub uh, substitute change. This bill provides that the State Tax Commission can share identifying information with the unclaimed property administrator for the purpose of helping the unclaimed property administrator return unclaimed property to our constituents. And with that, I'll yield to any questions.

You. I move that second substitute Senate bill 1 55. Be read for a third time.

President, uh, I'd like to request this to encircle Senate bill 1 42 please.

Yes. The, oh no, I'm sorry. I ma may have made a mistake then this was just a one word change in this bill, so if we need to recircle it, that's okay too.

It. Oh no, not an amendment. Just the bill is a, a small change. The bill itself is a small change. Sorry if I misrepresented that.

Okay. If I could Recircle please.

This bill provides that the State Tax Commission can share identifying information with the unclaimed property administrator for the purpose of helping the unclaimed property administrator return unclaimed property to our constituents. And with that, I'll yield to any questions.

You. I move that second substitute Senate bill 1 55. Be read for a third time.

President, uh, I'd like to request this to encircle Senate bill 1 42 please.

Yes. The, oh no, I'm sorry. I ma may have made a mistake then this was just a one word change in this bill, so if we need to recircle it, that's okay too. No, go ahead. If you got an amendment, let's go ahead and place It. Oh no, not an amendment. Just the bill is a, a small change. The bill itself is a small change. Sorry if I misrepresented that.

Okay. If I could Recircle please.

Thank you Mr. President. Uh, recent audits revealed that over 50% of education technology vendors contracting with the schools. And, and this includes audits that were done, uh, at,

the tax commission to share information with the treasurer's office so they can help people, help identify people with unclaimed property, get their money back. And with that I'll yield to any questions. Looking for questions if say none going to you on the bill. Uh, motion that second substitute Senate bill 1 55 pass.

Senator Vickers Baldy Aye. Bwin Bramer Bus Colmore has Camilla Fillmore Aye. Grover Harper Hankins Ipson. A Johnson Quan McKay. Mikel Milner Musselman Owens Pitcher Aye. Thumb Rebe Sandal Stevenson Stratton Aye. Vickers Aye. Weiler Aye. Wilson. Aye. Winterton President Adams Aye. Second substitute Senate Bill 1 55.

You Mr. Speaker. This bill is supposed to help the facilitation and return of unclaimed property. Uh, what this bill is doing is going to, uh, allow some sharing of confidential information with the, uh, rights. Let's see, the unclaimed property administrator with the department, uh, or the treasury and then, or the treasurer's office. And then, um, this information will still be kept confidential, but it'll allow, uh, the unclaimed property to be able to return to its rightful owner. And with that, that concludes my presentation.