House Bill hb0107

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    Florida House of Representatives - 2001                 HB 107

        By Representative Prieguez






  1                      A bill to be entitled

  2         An act relating to unclaimed property; revising

  3         provisions of ch. 717, F.S., to refer to

  4         property considered abandoned as unclaimed

  5         property; amending s. 717.101, F.S.; revising

  6         certain definitions; amending ss. 717.102,

  7         717.103, 717.1035, 717.104, 717.105, 717.107,

  8         717.108, 717.109, 717.1101, 717.111, 717.113,

  9         717.115, 717.116, 717.1201, 717.122, 717.125,

10         and 717.129, F.S.; changing references to

11         property from being abandoned to being

12         unclaimed; amending s. 717.106, F.S., to

13         conform; providing an additional criterion for

14         certain property in financial organizations

15         being presumed unclaimed; amending s. 717.112,

16         F.S., to conform; providing a presumption that

17         certain intangible property is unclaimed under

18         certain circumstances; amending s. 717.117,

19         F.S., to conform; deleting a report

20         verification requirement; revising unclaimed

21         property report requirements; revising search

22         and notification requirements for inactive

23         accounts; amending s. 717.118, F.S., to

24         conform; revising certain notification

25         procedures; amending s. 717.119, F.S., to

26         conform; authorizing payment of unclaimed funds

27         by electronic transfer; deleting an

28         authorization to deduct reasonable fees from

29         certain sale proceeds; providing valuation and

30         remission of contents of safe-deposit boxes;

31         amending s. 717.122, F.S., to conform;

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  1         authorizing the department to dispose of

  2         certain property under certain circumstances;

  3         amending s. 717.123, F.S.; revising the

  4         disposition of funds held by the Department of

  5         Banking and Finance relating to unclaimed

  6         property; amending s. 717.124, F.S.; revising

  7         certain procedures for filing claims by owner's

  8         representatives and receiving and making

  9         payments to an owner or owner's representative;

10         amending s. 717.1241; revising resolution of

11         conflicting ownership claims between certain

12         persons; amending s. 717.1243, F.S.; revising

13         provisions for disposition of claims from small

14         estate accounts; creating s. 717.1315, F.S.;

15         providing for retention of certain records by

16         an owner's representative; providing

17         requirements; amending s. 717.132, F.S.;

18         providing for deposit of administrative fines

19         into the Unclaimed Property Trust Fund;

20         amending s. 717.135, F.S.; revising provisions

21         relating to unenforceability of certain

22         agreements to locate reported property;

23         requiring disclosure of certain information;

24         limiting certain recovery fees; specifying

25         agreement requirements; amending s. 717.138,

26         F.S.; authorizing the the Department of Banking

27         and Finance to adopt rules for certain

28         electronic filings; amending s. 732.107, F.S.;

29         deleting an interest rate requirement relating

30         to payments of amounts of escheated property;

31         amending s. 493.6102, F.S.; specifying

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  1         nonapplication to certain persons; repealing s.

  2         717.137, F.S., relating to effect and

  3         application of certain provisions; providing an

  4         effective date.

  5

  6  Be It Enacted by the Legislature of the State of Florida:

  7

  8         Section 1.  Subsections (8) through (18) of section

  9  717.101, Florida Statutes, are renumbered as subsections (9)

10  through (19), respectively, a new subsection (8) is added to

11  said section, and renumbered subsections (13) and (15) are

12  amended, to read:

13         717.101  Definitions.--As used in this chapter, unless

14  the context otherwise requires:

15         (8)  "Due diligence" means the use of reasonable and

16  prudent methods under particular circumstances to locate

17  apparent owners of inactive accounts using the taxpayer

18  identification number or social security number, if known,

19  which may include, but are not limited to, using a nationwide

20  database, cross-indexing with other records of the holder,

21  mailing to the last known address unless the last known

22  address is known to be inaccurate, or engaging a licensed

23  agency or company capable of conducting such search and

24  providing updated addresses.

25         (13)(12)  "Last known address" means a description of

26  the location of the apparent owner sufficient for the purpose

27  of the delivery of mail. For the purposes of identifying,

28  reporting, and remitting property to the department which is

29  presumed to be unclaimed, "last known address" includes any

30  partial description of the location of the apparent owner

31  sufficient to establish the apparent owner was a resident of

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  1  this state at the time of last contact with the apparent owner

  2  or at the time the property became due and payable.

  3         (15)(14)  "Owner" means a depositor in the case of a

  4  deposit, a beneficiary in case of a trust other than a deposit

  5  in trust, a creditor, a claimant, or a payee in the case of

  6  other intangible property, or a person having a legal or

  7  equitable interest in property subject to this chapter or his

  8  or her legal representative.

  9         Section 2.  Subsection (1) of section 717.102, Florida

10  Statutes, is amended to read:

11         717.102  Property presumed unclaimed abandoned; general

12  rule.--

13         (1)  All intangible property, including any income or

14  increment thereon less any lawful charges, that is held,

15  issued, or owing in the ordinary course of the holder's

16  business and has remained unclaimed by the owner fails to

17  claim such property for more than 5 years after the property

18  it becomes payable or distributable is presumed unclaimed

19  abandoned, except as otherwise provided by this chapter.

20         Section 3.  Section 717.103, Florida Statutes, is

21  amended to read:

22         717.103  General rules for taking custody of intangible

23  unclaimed property.--Unless otherwise provided in this chapter

24  or by other statute of this state, intangible property is

25  subject to the custody of the department as unclaimed property

26  if the conditions leading to a presumption that the property

27  is unclaimed of abandonment as described in ss. 717.102 and

28  717.105-717.116 are satisfied and:

29         (1)  The last known address, as shown on the records of

30  the holder, of the apparent owner is in this state;

31

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  1         (2)  The records of the holder do not reflect the

  2  identity of the person entitled to the property, and it is

  3  established that the last known address of the person entitled

  4  to the property is in this state;

  5         (3)  The records of the holder do not reflect the last

  6  known address of the apparent owner, and it is established

  7  that:

  8         (a)  The last known address of the person entitled to

  9  the property is in this state; or

10         (b)  The holder is a domiciliary or a government or

11  governmental subdivision or agency of this state and has not

12  previously paid the property to the state of the last known

13  address of the apparent owner or other person entitled to the

14  property;

15         (4)  The last known address, as shown on the records of

16  the holder, of the apparent owner or other person entitled to

17  the property is in a state that does not provide by law for

18  the escheat or custodial taking of the property, or its

19  escheat or unclaimed property law is not applicable to the

20  property, and the holder is a domiciliary or a government or

21  governmental subdivision or agency of this state;

22         (5)  The last known address, as shown on the records of

23  the holder, of the apparent owner is in a foreign nation and

24  the holder is a domiciliary or a government or governmental

25  subdivision or agency of this state; or

26         (6)  The transaction out of which the property arose

27  occurred in this state, and;

28         (a)1.  The last known address of the apparent owner or

29  other person entitled to the property is unknown; or

30         2.  The last known address of the apparent owner or

31  other person entitled to the property is in a state that does

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  1  not provide by law for the escheat or custodial taking of the

  2  property, or its escheat or unclaimed property law is not

  3  applicable to the property; and

  4         (b)  The holder is a domiciliary of a state that does

  5  not provide by law for the escheat or custodial taking of the

  6  property, or its escheat or unclaimed property law is not

  7  applicable to the property.

  8         Section 4.  Section 717.1035, Florida Statutes, is

  9  amended to read:

10         717.1035  Property originated or issued by this state,

11  any political subdivision of this state, or any entity

12  incorporated, organized, created, or otherwise located in the

13  state.--

14         (1)  All intangible property, including, but not

15  limited to, any interest, dividend, or other earnings thereon,

16  less any lawful charges, held by a business association,

17  federal, state, or local government or governmental

18  subdivision, agency, or entity, or any other person or entity,

19  regardless of where the holder may be found, if the owner has

20  not claimed or corresponded in writing concerning the property

21  within 3 years after the date prescribed for payment or

22  delivery, is presumed to be unclaimed property abandoned and

23  subject to the custody of this state as such unclaimed

24  property if:

25         (a)  The last known address of the owner is unknown;

26  and

27         (b)  The person or entity originating or issuing the

28  intangible property is this state or any political subdivision

29  of this state, or the person or entity is incorporated,

30  organized, created, or otherwise located in this state.

31

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  1         (2)  The provisions of subsection (1) shall not apply

  2  to property which is or may be presumed unclaimed abandoned

  3  and subject to the custody of this state pursuant to any other

  4  provision of law containing a dormancy period different than

  5  that prescribed in subsection (1).

  6         (3)  The provisions of subsection (1) shall apply to

  7  all property held at the time of enactment, or at any time

  8  thereafter, regardless of when such property became or becomes

  9  presumptively unclaimed abandoned.

10         Section 5.  Subsections (1), (2), and (5) of section

11  717.104, Florida Statutes, are amended to read:

12         717.104  Traveler's checks and money orders.--

13         (1)  Subject to subsection (4), any sum payable on a

14  traveler's check that has been outstanding for more than 15

15  years after its issuance is presumed unclaimed abandoned

16  unless the owner, within 15 years, has communicated in writing

17  with the issuer concerning it or otherwise indicated an

18  interest as evidenced by a memorandum or other record on file

19  with prepared by an employee of the issuer.

20         (2)  Subject to subsection (4), any sum payable on a

21  money order or similar written instrument, other than a third

22  party bank check, that has been outstanding for more than 7

23  years after its issuance is presumed unclaimed abandoned

24  unless the owner, within 7 years, has communicated in writing

25  with the issuer concerning it or otherwise indicated an

26  interest as evidenced by a memorandum or other record on file

27  with prepared by an employee of the issuer.

28         (5)  Notwithstanding any other provision of this

29  chapter, subsection (4) applies to sums payable on traveler's

30  checks, money orders, and similar written instruments presumed

31  unclaimed abandoned on or after February 1, 1965, except to

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  1  the extent that those sums have been paid over to a state

  2  prior to January 1, 1974.

  3         Section 6.  Subsection (1) of section 717.105, Florida

  4  Statutes, is amended to read:

  5         717.105  Checks, drafts, and similar instruments issued

  6  or certified by banking and financial organizations.--

  7         (1)  Any sum payable on a check, draft, or similar

  8  instrument, except those subject to ss. 717.104 and 717.115,

  9  on which a banking or financial organization is directly

10  liable, including, but not limited to by way of illustration

11  and not limitation, a cashier's check or and a certified

12  check, which has been outstanding for more than 5 years after

13  it was payable or after its issuance if payable on demand, is

14  presumed unclaimed abandoned unless the owner, within 5 years,

15  has communicated in writing with the banking or financial

16  organization concerning it or otherwise indicated an interest

17  as evidenced by a memorandum or other record on file with

18  prepared by an employee of the banking or financial

19  organization.

20         Section 7.  Subsections (1) and (5) of section 717.106,

21  Florida Statutes, are amended to read:

22         717.106  Bank deposits and funds in financial

23  organizations.--

24         (1)  Any demand, savings, or matured time deposit with

25  a banking or financial organization, including deposits that

26  are automatically renewable, and any funds paid toward the

27  purchase of shares, a mutual investment certificate, or any

28  other interest in a banking or financial organization is

29  presumed unclaimed abandoned unless the owner has, within 5

30  years:

31

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  1         (a)  In the case of a deposit, Increased or decreased

  2  the amount of the deposit or presented the passbook or other

  3  similar evidence of the deposit for the crediting of interest;

  4         (b)  Communicated in writing with the banking or

  5  financial organization concerning the property;

  6         (c)  Otherwise indicated an interest in the property as

  7  evidenced by a memorandum or other record on file with

  8  prepared by an employee of the banking or financial

  9  organization;

10         (d)  Owned other property to which paragraph (a),

11  paragraph (b), or paragraph (c) is applicable and if the

12  banking or financial organization communicates in writing with

13  the owner with regard to the property that would otherwise be

14  presumed unclaimed abandoned under this subsection at the

15  address to which communications regarding the other property

16  regularly are sent; or

17         (e)  Had another relationship with the banking or

18  financial organization concerning which the owner has:

19         1.  Communicated in writing with the banking or

20  financial organization; or

21         2.  Otherwise indicated an interest as evidenced by a

22  memorandum or other record on file with prepared by an

23  employee of the banking or financial organization and if the

24  banking or financial organization communicates in writing with

25  the owner with regard to the property that would otherwise be

26  unclaimed abandoned under this subsection at the address to

27  which communications regarding the other relationship

28  regularly are sent; or.

29         (f)  Received first class mail from the banking or

30  financial organization or a subsidiary of such banking or

31  financial organization, which was not returned as

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  1  undeliverable, in the ordinary course of business at the

  2  address reflected in the banking or financial organization's

  3  records.

  4         (5)  If the documents establishing a deposit described

  5  in subsection (1) state the address of a beneficiary of the

  6  deposit, and the account has a value of at least $50, notice

  7  shall be given to the beneficiary as provided for notice to

  8  the apparent owner under s. 717.117(4)(5). This subsection

  9  shall apply to accounts opened on or after October 1, 1990.

10         Section 8.  Subsection (1) of section 717.107, Florida

11  Statutes, is amended to read:

12         717.107  Funds owing under life insurance policies.--

13         (1)  Funds held or owing under any life or endowment

14  insurance policy or annuity contract which has matured or

15  terminated are presumed unclaimed abandoned if unclaimed for

16  more than 5 years after the funds became due and payable as

17  established from the records of the insurance company holding

18  or owing the funds, but property described in paragraph (3)(b)

19  is presumed unclaimed abandoned if such property is not

20  claimed unclaimed for more than 2 years.

21         Section 9.  Section 717.108, Florida Statutes, is

22  amended to read:

23         717.108  Deposits held by utilities.--Any deposit,

24  including any interest thereon, made by a subscriber with a

25  utility to secure payment or any sum paid in advance for

26  utility services to be furnished, less any lawful charges,

27  that remains unclaimed by the owner for more than 1 year after

28  termination of the services for which the deposit or advance

29  payment was made is presumed unclaimed abandoned.

30         Section 10.  Section 717.109, Florida Statutes, is

31  amended to read:

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  1         717.109  Refunds held by business associations.--Except

  2  to the extent otherwise ordered by the court or administrative

  3  agency, any sum that a business association has been ordered

  4  to refund by a court or administrative agency which has not

  5  been claimed remained unclaimed by the owner for more than 1

  6  year after it became payable in accordance with the final

  7  determination or order providing for the refund, regardless of

  8  whether the final determination or order requires any person

  9  entitled to a refund to make a claim for it, is presumed

10  unclaimed abandoned.

11         Section 11.  Subsections (1), (2), (3), and (4) of

12  section 717.1101, Florida Statutes, are amended to read:

13         717.1101  Stock and other intangible interests in

14  business associations.--

15         (1)  Except as provided in subsections (2) and (5), any

16  stock or other intangible ownership interest in a business

17  association, the existence of which is evidenced by record

18  available to the association, is presumed unclaimed abandoned

19  and, with respect to the interest, the association is the

20  holder, if a dividend, distribution, or other sum payable as a

21  result of the interest is not claimed has for 5 years remained

22  unclaimed by the owner and the owner has not within 5 years:

23         (a)  Communicated in writing with the association or

24  its agent regarding the interest or a dividend, distribution,

25  or other sum payable as a result of the interest; or

26         (b)  Otherwise communicated with the association

27  regarding the interest or a dividend, distribution, or other

28  sum payable as a result of the interest, as evidenced by a

29  memorandum or other record on file with the association or its

30  agent prepared by an employee of the association or its agent.

31

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  1         (2)  At the expiration of a 5-year period following the

  2  failure of the owner to claim a dividend, distribution, or

  3  other sum payable to the owner as a result of the interest,

  4  the interest shall not be presumed unclaimed abandoned unless

  5  there have been at least five dividends, distributions, or

  6  other sums paid during the period, none of which has been

  7  claimed.  If five dividends, distributions, or other sums are

  8  paid during the 5-year period, the period leading to a

  9  presumption that the interest is unclaimed of abandonment

10  commences on the date payment of the first such unclaimed

11  dividend, distribution, or other sum became due and payable.

12  If five dividends, distributions, or other sums are not paid

13  during the presumptive period, the period continues to run

14  until there have been five consecutive dividends,

15  distributions, or other sums that have not been claimed by the

16  owner.

17         (3)  The running of such the 5-year period of

18  abandonment ceases immediately upon the occurrence of one or

19  more of the conditions referred to in subsection (1).  If any

20  future dividend, distribution, or other sum payable to the

21  owner as a result of the interest is subsequently not claimed

22  by the owner, a new period in which the property is presumed

23  unclaimed of abandonment commences and relates back only to

24  the time a subsequent dividend, distribution, or other sum

25  became due and payable.

26         (4)  At the same time any interest is presumed

27  unclaimed abandoned under this section, any dividend,

28  distribution, or other sum then held for or owing to the owner

29  as a result of the interest, and not previously presumed

30  abandoned, is presumed unclaimed abandoned.

31

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  1         Section 12.  Section 717.111, Florida Statutes, is

  2  amended to read:

  3         717.111  Property of business associations held in

  4  course of dissolution.--All intangible property distributable

  5  in the course of a voluntary or involuntary dissolution of a

  6  business association which is not claimed remains unclaimed by

  7  the owner for more than 6 months after the date specified for

  8  final distribution is presumed unclaimed abandoned.

  9         Section 13.  Subsection (1) of section 717.112, Florida

10  Statutes, is amended, and subsection (5) is added to said

11  section, to read:

12         717.112  Property held by agents and fiduciaries.--

13         (1)  All intangible property and any income or

14  increment thereon held in a fiduciary capacity for the benefit

15  of another person is presumed unclaimed abandoned unless the

16  owner has within 5 years after it has become payable or

17  distributable increased or decreased the principal, accepted

18  payment of principal or income, communicated concerning the

19  property, or otherwise indicated an interest as evidenced by a

20  memorandum or other record on file with prepared by the

21  fiduciary or an employee of the fiduciary.

22         (5)  All intangible property, and any income or

23  increment thereon, issued by a government or governmental

24  subdivision or agency, public corporation, or public authority

25  and held in an agency capacity for the governmental

26  subdivision, agency, public corporation, or public authority

27  for the benefit of the owner of record, is presumed unclaimed

28  unless the owner has, within 1 year after such property has

29  become payable or distributable, increased or decreased the

30  principal, accepted payment of the principal or income,

31  communicated concerning the property, or otherwise indicated

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  1  an interest in the property as evidenced by a memorandum or

  2  other record on file with the fiduciary.

  3         Section 14.  Section 717.113, Florida Statutes, is

  4  amended to read:

  5         717.113  Property held by courts and public

  6  agencies.--All intangible property held for the owner by any

  7  court, government or governmental subdivision or agency,

  8  public corporation, or public authority that has not been

  9  claimed remained unclaimed by the owner for more than 1 year

10  after it became payable or distributable is presumed unclaimed

11  abandoned. Notwithstanding the provisions of this section,

12  funds deposited in the Minerals Trust Fund pursuant to s.

13  377.247 are presumed unclaimed abandoned only if the funds

14  have not been claimed remained unclaimed by the owner for more

15  than 5 years after from the date of first production from the

16  well.

17         Section 15.  Section 717.115, Florida Statutes, is

18  amended to read:

19         717.115  Wages.--Unpaid wages, including wages

20  represented by unpresented payroll checks, owing in the

21  ordinary course of the holder's business that have not been

22  claimed remained unclaimed by the owner for more than 1 year

23  after becoming payable are presumed unclaimed abandoned.

24         Section 16.  Section 717.116, Florida Statutes, is

25  amended to read:

26         717.116  Contents of safe-deposit box or other

27  safekeeping repository.--All tangible and intangible property

28  held in a safe-deposit box or any other safekeeping repository

29  in this state in the ordinary course of the holder's business,

30  and proceeds resulting from the sale of the property permitted

31  by law, that has not been claimed remain unclaimed by the

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  1  owner for more than 3 years after the lease or rental period

  2  on the box or other repository has expired are presumed

  3  unclaimed abandoned.

  4         Section 17.  Section  717.117, Florida Statutes, is

  5  amended to read:

  6         717.117  Report of unclaimed abandoned property.--

  7         (1)  Every person holding funds or other property,

  8  tangible or intangible, presumed unclaimed abandoned and

  9  subject to custody as unclaimed property under this chapter

10  shall report to the department on such forms as the department

11  may prescribe by rule with respect to the property as provided

12  in this section.  In lieu of forms, the holder may submit the

13  required information via electronic medium as the department

14  may prescribe by rule.

15         (2)  The report shall be verified. Verification of a

16  private corporation or unincorporated association shall be

17  made by an officer; of a partnership, by a partner; and of a

18  public corporation, by its chief fiscal officer. The report

19  must include:

20         (a)  Except for with respect to traveler's checks and

21  money orders, the name, and social security number or taxpayer

22  federal employer identification number, and date of birth, if

23  known, and last known address, if any, of each person

24  appearing from the records of the holder to be the owner of

25  any property which is presumed unclaimed and which has of a

26  value of $50 or more presumed abandoned under this chapter.

27         (b)  For In the case of unclaimed funds which have a

28  value of $50 or more held or owing under any life or endowment

29  insurance policy or annuity contract, the full name, taxpayer

30  social security number, or federal employer identification

31  number or social security number, date of birth, if known, and

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  1  last known address of the insured or annuitant and of the

  2  beneficiary according to records of the insurance company

  3  holding or owing the funds.

  4         (c)  For all tangible property held in the case of the

  5  contents of a safe-deposit box or other safekeeping repository

  6  or in the case of other tangible property, a description of

  7  the property and the place where the property it is held and

  8  may be inspected by the department, and any amounts owing to

  9  the holder. Contents of a safe-deposit box or other

10  safekeeping repository which consist of documents or writings

11  of a private nature and which have little or no apparent value

12  shall not be presumed unclaimed abandoned.

13         (d)  The nature and identifying number, if any, or

14  description of the property and the amount appearing from the

15  records to be due., but Items of value under $50 each may be

16  reported in the aggregate.

17         (e)  The date the property became payable, demandable,

18  or returnable, and the date of the last transaction with the

19  apparent owner with respect to the property.

20         (f)  Any person or business entity holding funds

21  presumed unclaimed and having abandoned of a total value of

22  $10 or less may file a zero balance negative or nothing-owed

23  report for that reporting period.  The balance brought forward

24  to the new reporting period is zero.

25         (g)  Such other information as which the department may

26  prescribe prescribes by rule as necessary for the

27  administration of this chapter.

28         (h)  Credit balances, customer overpayments, security

29  deposits, and refunds having a value of less than $10 shall

30  not be presumed unclaimed abandoned.

31

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  1         (2)(3)  If the holder of person holding property

  2  presumed unclaimed abandoned and subject to custody as

  3  unclaimed property is a successor holder to other persons who

  4  previously held the property for the apparent owner or if the

  5  holder has changed the holder's his or her name while in

  6  possession of holding the property, the holder he or she shall

  7  file with the holder's his or her report all known names and

  8  addresses of each prior previous holder of the property.

  9  Compliance with this subsection means the holder exercises

10  reasonable and prudent efforts to determine the names of all

11  prior holders.

12         (3)(4)  The report must be filed before May 1 of each

13  year.  Such report shall apply to the preceding calendar year.

14  If such report is not filed on or before the applicable filing

15  date, the holder shall pay to the department a penalty of $10

16  per day for each day the report is delinquent, but such

17  penalty shall not exceed $500. As necessary for proper

18  administration of this chapter, the department may waive any

19  penalty due with appropriate justification.  On written

20  request by any person required to file a report, the

21  department may postpone the reporting date.

22         (4)(5)  Holders of inactive accounts shall use due

23  diligence to locate apparent owners. Not more than 120 days

24  prior to filing the report required by this section, the

25  holder in possession of property presumed abandoned and

26  subject to custody as unclaimed property under this chapter

27  shall send written notice to the apparent owner at his or her

28  last known address informing him or her that the holder is in

29  possession of property subject to this chapter if:

30         (a)  When an owner's account becomes inactive, the

31  holder shall conduct at least one search for the apparent

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  1  owner using due diligence.  For purposes of this section, an

  2  account is inactive if 2 years have transpired after the last

  3  owner-initiated account activity, the expiration date on the

  4  instrument or contract, or first-class mail has been returned

  5  as undeliverable.

  6         1.  Within 180 days after an account becomes inactive,

  7  the holder shall conduct a search to locate the apparent owner

  8  of the property. The holder may satisfy such requirement by

  9  conducting one annual search for the owners of all accounts

10  which have become inactive during the prior year.

11         2.  Within 30 days after receiving updated address

12  information, the holder shall provide notice by telephone or

13  first-class mail to the current address notifying the apparent

14  owner that the holder is in possession of property which is

15  presumed unclaimed and may be remitted to the department. The

16  notice shall also provide the apparent owner with the address

17  or the telephone number of an office where the apparent owner

18  may claim the property or reestablish the inactive account.

19  The holder has in its records an address for the apparent

20  owner which the holder's records do not disclose to be

21  inaccurate.

22         (b)  The claim of the apparent owner is not barred by

23  the statute of limitations.

24         (5)(6)  Any holder of intangible property may file with

25  the department a petition for determination that the property

26  is unclaimed abandoned requesting the department to accept

27  custody of the property.  The petition shall state any special

28  circumstances that exist, contain the information required by

29  subsection (2), and show that a diligent search has been made

30  to locate the owner.  If the department finds that the proof

31

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  1  of diligent search is satisfactory, it shall give notice as

  2  provided in s. 717.118 and accept custody of the property.

  3         (6)(7)  Upon On written request by any entity or person

  4  required to file a report, stating such entity's or person's

  5  their justification for such action, the department may place

  6  that entity or person in an inactive status as an unclaimed

  7  abandoned property "holder."

  8         (7)(8)  This section shall not apply to the unclaimed

  9  patronage refunds as provided for by contract or through bylaw

10  provisions of entities organized under chapter 425.

11         Section 18.  Section 717.118, Florida Statutes, is

12  amended to read:

13         717.118  Notice and publication of lists of unclaimed

14  abandoned property.--

15         (1)  It is specifically recognized that the state has

16  an obligation to make an effort to notify owners of unclaimed

17  abandoned property in a cost-effective manner. In order to

18  provide all the citizens of this state an effective and

19  efficient program for the recovery of unclaimed abandoned

20  property, the department shall use cost-effective means to

21  make at least one active a single attempt to notify owners of

22  the existence of unclaimed abandoned property held by the

23  department. Such active attempt to locate apparent owners

24  shall include any attempt by the department to directly

25  contact the owner.  Other The means of notification, such as

26  publication of the names of owners in the newspaper, on

27  television, on the Internet, or through other promotional

28  efforts and items in which the department does not directly

29  attempt to contact the owner are expressly declared to be

30  passive attempts. Nothing in this subsection precludes other

31  agencies or entities of state government from notifying owners

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  1  of the existence of unclaimed property or attempting to locate

  2  apparent owners of unclaimed property. may include post,

  3  print, visual, telecommunications, or electronic media.

  4  Publication of the names of owners on the Internet is not an

  5  attempt to notify owners under this subsection. The department

  6  shall implement such notification within 13 months following

  7  the receipt of the report required by s. 717.117.

  8         (2)  The following notification requirements shall

  9  apply:

10         (a)  Notifications that are published or televised may

11  shall consist of the names of apparent owners of unclaimed

12  abandoned property, listed in alphabetical order, and

13  information regarding recovery of unclaimed abandoned property

14  from the department. Such notification may shall be televised

15  or published in the county in which the last known address of

16  the apparent owner is located or, if the address is unknown,

17  in the county in which the holder has its principal place of

18  business. Published notifications may must be in accordance

19  with s. 50.011.

20         (b)  Notification provided directly to individual

21  apparent owners shall consist of a description of the property

22  and information regarding recovery of unclaimed abandoned

23  property from the department.

24         (3)  The department may shall publish in the notice any

25  items of more than $100.

26         (4)  This section is not applicable to sums payable on

27  traveler's checks, money orders, and other written instruments

28  presumed unclaimed abandoned under s. 717.104.

29         Section 19.  Section 717.119, Florida Statutes, is

30  amended to read:

31

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  1         717.119  Payment or delivery of unclaimed abandoned

  2  property.--

  3         (1)  Every person who is required to file a report

  4  under s. 717.117 shall simultaneously pay or deliver to the

  5  department all unclaimed abandoned property required to be

  6  reported.  Such payment or delivery shall accompany the report

  7  as required in this chapter for the preceding calendar year.

  8         (2)  Payment of unclaimed funds may be made to the

  9  department by electronic funds transfer.

10         (3)(2)  If the owner establishes the right to receive

11  the unclaimed abandoned property to the satisfaction of the

12  holder before the property has been delivered to the

13  department or it appears that for some other reason the

14  presumption that the property is unclaimed of abandonment is

15  erroneous, the holder need not pay or deliver the property to

16  the department., which will no longer be presumed abandoned,

17  but In lieu of delivery, the holder thereof shall file a

18  verified written explanation of the proof of claim or of the

19  error in the presumption that the property was unclaimed of

20  abandonment.

21         (4)(3)  All stock or other intangible ownership

22  interest reported under this chapter on the annual report

23  filing required in s. 717.117 shall be sold and the proceeds

24  remitted to the department with the report.  Reasonable fees

25  within the industry's standards may be deducted from the

26  proceeds for the costs of selling the stock or other

27  intangible ownership interest.  Upon delivery of the stock or

28  other intangible ownership interest net proceeds to the

29  department, the holder and any transfer agent, registrar, or

30  other person acting for or on behalf of a holder is relieved

31  of all liability of every kind in accordance with the

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  1  provisions of s. 717.1201 to every person for any losses or

  2  damages resulting to the person by the sale and delivery to

  3  the department of the stock or other intangible ownership

  4  interest net proceeds.

  5         (5)(4)  All intangible and tangible property held in a

  6  safe-deposit box or any other safekeeping repository reported

  7  under s. 717.117 shall not be delivered to the department

  8  until 120 days after the report due date. Holders may remit

  9  the value of cash and coins found in unclaimed safe-deposit

10  boxes to the department by cashier's check or by electronic

11  funds transfer, unless the cash or coins have a value above

12  face value.  The department shall identify by rule those cash

13  and coin items having a numismatic value. Cash and coin items

14  identified as having a numismatic value shall be remitted to

15  the department in their original form.

16         (a)  If such property is not paid or delivered to the

17  department filed on or before the applicable payment or

18  delivery filing date, the holder shall pay to the department a

19  penalty of $10 for each safe-deposit box received late, but

20  such penalty shall not exceed $1,000. As necessary for proper

21  administration of this chapter,

22         (b)  The department may waive any penalty due with

23  appropriate justification, as provided by rule.

24         (c)  Upon On written request by any person required to

25  deliver safe-deposit box contents, the department may postpone

26  the delivery.

27         (6)(5)  Any holder may request an extension in writing

28  of up to 60 days for the delivery of property if extenuating

29  circumstances exist for the late delivery of the property.

30  Any such extension, and the department may grant shall be such

31  an extension in writing.

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  1         Section 20.  Subsection (6) of section 717.1201,

  2  Florida Statutes, is amended to read:

  3         717.1201  Custody by state; holder relieved from

  4  liability; reimbursement of holder paying claim; reclaiming

  5  for owner; defense of holder; payment of safe-deposit box or

  6  repository charges.--

  7         (6)  For the purposes of this section, "good faith"

  8  means that:

  9         (a)  Payment or delivery was made in a reasonable

10  attempt to comply with this chapter.

11         (b)  The person delivering the property was not a

12  fiduciary then in breach of trust in respect to the property

13  and had a reasonable basis for believing, based on the facts

14  then known to that person, that the property was unclaimed

15  abandoned for the purposes of this chapter.

16         (c)  There is no showing that the records pursuant to

17  which the delivery was made did not meet reasonable commercial

18  standards of practice in the industry.

19         Section 21.  Subsections (1), (2), and (3) of section

20  717.122, Florida Statutes, are amended to read:

21         717.122  Public sale of unclaimed abandoned property.--

22         (1)  Except as provided in subsection (2), the

23  department after the receipt of unclaimed abandoned property

24  shall sell it to the highest bidder at public sale wherever in

25  whatever city in the state affords in the judgment of the

26  department the most favorable market for the property involved

27  exists.  The department may decline the highest bid and

28  reoffer the property for sale if in the judgment of the

29  department the bid is insufficient.  The department shall have

30  the discretion to withhold from sale any unclaimed abandoned

31  property that the department deems to be of benefit to the

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  1  people of the state.  If in the judgment of the department the

  2  probable cost of sale exceeds the value of the property, it

  3  need not be offered for sale and may be disposed of as the

  4  department determines appropriate.  Any sale held under this

  5  section must be preceded by a single publication of notice, at

  6  least 3 weeks in advance of sale, in a newspaper of general

  7  circulation in the county in which the property is to be sold.

  8         (2)  Securities listed on an established stock exchange

  9  must be sold at prices prevailing at the time of sale on the

10  exchange.  Other securities may be sold over the counter at

11  prices prevailing at the time of sale or by any other method

12  the department deems advisable.  The department may authorize

13  the agent or broker acting on behalf of the department to

14  deduct fees from the proceeds of these sales at a rate agreed

15  upon in advance by the agent or broker and the department.

16  The department shall reimburse owners accounts for these

17  brokerage fees from the State School Fund unless the

18  securities are sold at the owner's request.

19         (3)  Unless the department deems it to be in the public

20  interest to do otherwise, all securities presumed unclaimed

21  abandoned and delivered to the department may be sold upon

22  receipt.  Any person making a claim pursuant to this chapter

23  is entitled to receive either the securities delivered to the

24  department by the holder, if they still remain in the hands of

25  the department, or the proceeds received from sale, less any

26  amounts deducted pursuant to subsection (2) s. 717.123, but no

27  person has any claim under this chapter against the state, the

28  holder, any transfer agent, any registrar, or any other person

29  acting for or on behalf of a holder for any appreciation in

30  the value of the property occurring after delivery by the

31  holder to the state.

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  1         Section 22.  Section 717.123, Florida Statutes, is

  2  amended to read:

  3         717.123  Deposit of funds.--

  4         (1)  All funds received under this chapter, including

  5  the proceeds from the sale of unclaimed abandoned property

  6  under s. 717.122, shall forthwith be deposited by the

  7  department in the Unclaimed Property Trust State School Fund.,

  8  except that The department shall retain, from funds received

  9  under this chapter, in a separate account an amount not

10  exceeding $8 $3 million from which the department it shall

11  make prompt payment of claims allowed by the department and

12  shall pay the it. costs incurred by the department in

13  administering and enforcing this chapter. All remaining funds

14  received by the department under this chapter shall be

15  deposited by the department into the shall be reimbursed from

16  the State School Fund.

17         (2)  The department shall record the name and last

18  known address of each person appearing from the holder's

19  reports to be entitled to the unclaimed abandoned property in

20  the total amounts of $5 or greater; the name and the last

21  known address of each insured person or annuitant; and with

22  respect to each policy or contract listed in the report of an

23  insurance corporation, its number, the name of the

24  corporation, and the amount due.

25         Section 23.  Subsection (5) of section 717.124, Florida

26  Statutes, is amended to read:

27         717.124  Filing of claim with department.--

28         (5)(a)  If an owner authorizes a claimant assigns his

29  or her rights to receive payment to an attorney,

30  Florida-certified public accountant, or private investigative

31  agency which is duly licensed to do business in this state to

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  1  claim the unclaimed property on the owner's behalf pursuant to

  2  a written agreement with such claimant, the department is

  3  authorized to make distribution of the property or money in

  4  accordance with such power of attorney assignment.

  5         (b)1.  Payments of approved claims for unclaimed cash

  6  accounts shall be made to the owner after deducting any fees

  7  authorized pursuant to a written power of attorney.

  8         2.  Payments of fees authorized pursuant to a written

  9  power of attorney for approved cash claims shall be forwarded

10  to the designated attorney, Florida-certified public

11  accountant, or private investigative agency. Such payments may

12  be made by electronic funds transfer and may be made on such

13  periodic schedule as the department may define by rule,

14  provided the payment intervals do not exceed 31 days.

15         3.  Payments of approved claims for unclaimed

16  securities and other intangible ownership interests made to an

17  attorney, Florida-certified public accountant, or private

18  investigative agency shall be promptly deposited into a trust

19  or escrow account which is regularly maintained by the

20  attorney, Florida-certified public accountant, or the private

21  investigative agency in a financial institution authorized to

22  accept such deposits and located in this state.

23         (c)  Distribution of unclaimed property by the

24  attorney, Florida-certified public accountant, or private

25  investigative agency to the claimant shall be made within 10

26  days following final credit of the deposit into the trust or

27  escrow account at the financial institution, unless a party to

28  the agreement protests in writing such distribution before it

29  is made.

30         (6)(d)  The department shall not be civilly or

31  criminally liable for any property or funds distributed

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  1  pursuant to this section subsection, provided such

  2  distribution is made in good faith.

  3         Section 24.  Subsection (1) of section 717.1241,

  4  Florida Statutes, is amended to read:

  5         717.1241  Conflicting claims.--

  6         (1)  When ownership has been established but

  7  conflicting claims have been received by filed, the

  8  department, shall remit the property shall be remitted to the:

  9         (a)  Person submitting the first claim received by the

10  department;

11         (b)  Owner if an owner's claim and an owner's

12  representative's claim are received by the department on the

13  same day; or

14         (c)  Owner's representative who has the earliest dated

15  contract with the owner if claims by two or more owner's

16  representatives are received by the department on the same day

17  as follows:

18         (a)  If both the owner and the owner's representative

19  file claims for the same property:

20         1.  To the owner, if the owner has appointed the

21  owner's representative as the owner's attorney in fact but has

22  not irrevocably assigned the unclaimed property in whole or in

23  part to the owner's representative; or

24         2.  To the owner's representative pursuant to s.

25  717.124 if the owner has irrevocably assigned the unclaimed

26  property in whole or in part to the owner's representative.

27         (b)  To the owner's representative who first executed a

28  contract with the owner more than 12 months after the property

29  has been reported to the department, unless paragraph (a)

30  applies;

31

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  1         (c)  To the owner's representative who first executed a

  2  contract with the owner within 12 months after the property

  3  has been reported to the department, unless paragraph (a) or

  4  paragraph (b) applies.

  5         Section 25.  Section 717.1243, Florida Statutes, is

  6  amended to read:

  7         717.1243  Small estate accounts Transfer of unclaimed

  8  property by operation of law.--When A claim for unclaimed

  9  property is made by a beneficiary, as defined in s. 731.201,

10  an heir of a deceased an owner who died intestate need, it

11  shall not be accompanied by necessary to accompany the claim

12  with an order of a probate court if the claimant files with

13  the department an affidavit, signed by all beneficiaries,

14  stating that all the beneficiaries heirs have amicably agreed

15  among themselves upon a division of the estate, that the

16  assets of the estate of the owner, excluding the unclaimed

17  property, are sufficient to pay all just claims, and that all

18  funeral expenses, expenses of the last illness, and any other

19  lawful claims have been paid no probate proceedings have been

20  instituted upon the estate. If the owner died dies testate but

21  the will is not probated, the claim shall be accompanied by a

22  certified copy of the will and an affidavit stating that the

23  assets of the estate of the owner, excluding the unclaimed

24  property, are sufficient to pay all just claims and that no

25  probate proceedings have been instituted upon the estate.

26         (2)  Each person receiving property under this section

27  shall be personally liable for all lawful claims against the

28  estate of the owner, but only to the extent of the value of

29  the property received by such person under this section,

30  exclusive of the property exempt from claims of creditors

31  under the constitution and laws of this state.

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  1         (3)  Any heir or devisee of the owner, who was lawfully

  2  entitled to share in the property but did not receive his or

  3  her share of the property, may enforce his or her rights in

  4  appropriate proceedings against those who received the

  5  property and shall be awarded taxable costs as in chancery

  6  actions, including attorney's fees.

  7         (4)  This section only applies if all of the unclaimed

  8  property held by the department on behalf of the owner has an

  9  aggregate value of $5,000 $1,000 or less and no probate

10  proceeding is pending.

11         Section 26.  Subsections (1) and (2) of section

12  717.125, Florida Statutes, are amended to read:

13         717.125  Claim of another state to recover property;

14  procedure.--

15         (1)  At any time after property has been paid or

16  delivered to the department under this chapter, another state

17  may recover the property if:

18         (a)  The property was subjected to custody by this

19  state because the records of the holder did not reflect the

20  last known address of the apparent owner when the property was

21  presumed unclaimed abandoned under this chapter, and the other

22  state establishes that the last known address of the apparent

23  owner or other person entitled to the property was in that

24  state and under the laws of that state the property escheated

25  to or was subject to a claim of abandonment or being unclaimed

26  by that state;

27         (b)  The last known address of the apparent owner or

28  other person entitled to the property, as reflected by the

29  records of the holder, is in the other state and under the

30  laws of that state the property has escheated to or become

31  subject to a claim of abandonment by that state;

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  1         (c)  The records of the holder were erroneous in that

  2  they did not accurately reflect the actual owner of the

  3  property and the last known address of the actual owner is in

  4  the other state and under laws of that state the property

  5  escheated to or was subject to a claim of abandonment by that

  6  state;

  7         (d)  The property was subject to custody by this state

  8  under s. 717.103(6) and under the laws of the state of

  9  domicile of the holder the property has escheated to or become

10  subject to a claim of abandonment by that state; or

11         (e)  The property is the sum payable on a traveler's

12  check, money order, or other similar instrument that was

13  subjected to custody by this state under s. 717.104, and the

14  instrument was purchased in the other state, and under the

15  laws of that state the property escheated to or became subject

16  to a claim of abandonment by that state.

17         (2)  The claim of another state to recover escheated or

18  unclaimed abandoned property under this section must be

19  presented in a form prescribed by the department, and the

20  department shall determine the claim within 90 days after it

21  is presented.  Such determination shall contain a notice of

22  rights provided by ss. 120.569 and 120.57.

23         Section 27.  Subsection (1) of section 717.129, Florida

24  Statutes, is amended to read:

25         717.129  Periods of limitation.--

26         (1)  The expiration before or after July 1, 1987, of

27  any period of time specified by contract, statute, or court

28  order, during which a claim for money or property may be made

29  or during which an action or proceeding may be commenced or

30  enforced to obtain payment of a claim for money or to recover

31  property, does not prevent the money or property from being

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  1  presumed unclaimed abandoned or affect any duty to file a

  2  report or to pay or deliver unclaimed abandoned property to

  3  the department as required by this chapter.

  4         Section 28.  Section 717.1315, Florida Statutes, is

  5  created to read:

  6         717.1315  Retention of records by owner's

  7  representative.--

  8         (1)  Every owner's representative shall keep and use in

  9  his or her business such books, accounts, and records of the

10  business conducted under this chapter to enable the department

11  to determine whether such owner's representative is complying

12  with this chapter and the rules adopted by the department

13  under this chapter. Every owner's representative shall

14  preserve such books, accounts, and records, including every

15  agreement between the owner and such owner's representative,

16  for at least 3 years after the date of the initial agreement.

17         (2)  An owner's representative, operating at two or

18  more places of business in this state, may maintain the books,

19  accounts, and records of all such offices at any one of such

20  offices, or at any other office maintained by such owner's

21  representative, upon the filing of a written notice with the

22  department designating in the written notice the office at

23  which such records are maintained. However, the owner's

24  representative shall make all books, accounts, and records

25  available at a convenient location in this state upon request

26  of the department.

27         Section 29.  Subsection (3) of section 717.132, Florida

28  Statutes, is amended to read:

29         717.132  Enforcement; cease and desist orders;

30  administrative fines.--

31

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  1         (3)  In addition to any other powers conferred upon it

  2  to enforce and administer the provisions of this chapter, the

  3  department may impose and collect an administrative fine

  4  against any person found to have violated any provision of

  5  this chapter, any rule or order promulgated under this

  6  chapter, or any written agreement entered into with the

  7  department in an amount not to exceed $2,000 for each

  8  violation. All fines collected under this subsection shall be

  9  deposited as received in the Unclaimed Property Trust Fund.

10         Section 30.  Section 717.135, Florida Statutes, is

11  amended to read:

12         717.135  Agreement to locate reported property.--

13         (1)  All agreements between an owner's representative

14  and an owner for to pay compensation to recover or assist in

15  the recovery of property reported to the department under s.

16  717.117 shall either:

17         (a)  Limit the fees for services for each owner

18  contract to 15 percent for all contracts with dollar values of

19  $250 and above or to $25 for all contracts with dollar values

20  below $250. Fees for cash accounts shall be based on the value

21  of the property at the time the agreement for recovery is

22  signed by the apparent owner. Fees for accounts containing

23  securities or other intangible ownership interests, which

24  securities or interests are not converted to cash, shall be

25  based on the purchase price of the security as quoted on a

26  national exchange or other market on which the ownership

27  interest is regularly traded at the time the securities or

28  other ownership interest is remitted to the owner or the

29  owner's representative. Fees for tangible property or

30  safe-deposit box accounts shall be based on the value of the

31  tangible property or contents of the safe-deposit box at the

                                  32

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  1  time the ownership interest is transferred or remitted to the

  2  owner or the owner's representative; or

  3         (b)  Disclose that the property is held by the

  4  Department of Banking and Finance pursuant to chapter 717, the

  5  person or name of the entity that held the property prior to

  6  the property becoming unclaimed, the date of the holder's last

  7  contact with the owner, if known, and the approximate value of

  8  the property, and identify which of the following categories

  9  of unclaimed property the owner's representative is seeking to

10  recover:

11         1.  Cash accounts.

12         2.  Stale dated checks.

13         3.  Life insurance or annuity contract assets.

14         4.  Utility deposits.

15         5.  Securities or other interests in business

16  associations.

17         6.  Wages.

18         7.  Accounts receivable.

19         8.  Contents of safe-deposit boxes

20

21  be unenforceable if made within 90 days after attempted

22  notification by the department or within 12 months after such

23  property is reported, whichever occurs first. However, this

24  section shall not apply to contracts made in connection with

25  guardianship proceedings or the probate of an estate.

26         (2)(a)  Agreements for recovery of cash accounts shall

27  state the dollar value of the unclaimed property account to be

28  paid to the owner and shall also state the dollar value of

29  compensation to be paid to the owner's representative.

30         (b)  Agreements for recovery of accounts containing

31  securities, safe-deposit box accounts, other intangible or

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  1  tangible ownership interests, or other types of accounts,

  2  except cash accounts, shall state the approximate value of the

  3  unclaimed property and the percentage value of compensation to

  4  be paid to the owner's representative.

  5         (c)  All agreements shall include the name, address,

  6  and professional license number of the owner's representative,

  7  and, if available, the taxpayer identification number or

  8  social security number and telephone number of the owner. All

  9  such agreements to pay compensation shall be signed by the

10  owner of the property and shall be filed by the owner's

11  representative with the claim form. All agreements and/or

12  powers of attorney entered into pursuant to subsection (1)

13  shall contain the following statement directly above the

14  signature in no less than 6-point bold type:  "THIS AGREEMENT

15  TO PAY COMPENSATION TO RECOVER ABANDONED PROPERTY REPORTED TO

16  THE STATE OF FLORIDA IS UNENFORCEABLE IF MADE WITHIN 90 DAYS

17  AFTER THE ATTEMPTED NOTIFICATION OR WITHIN 12 MONTHS AFTER

18  SUCH PROPERTY IS REPORTED, WHICHEVER OCCURS FIRST." Any

19  agreement which does not contain this statement shall be

20  unenforceable.

21         Section 31.  Section 717.138, Florida Statutes, is

22  amended to read:

23         717.138  Rulemaking authority.--The Department of

24  Banking and Finance shall administer and provide for the

25  enforcement of this chapter. The department has authority to

26  adopt rules pursuant to ss. 120.536(1) and 120.54 to implement

27  the provisions of this chapter. The department may adopt rules

28  to allow for electronic filing of fees, forms, and reports

29  required by this chapter.

30         Section 32.  Subsection (4) of section 732.107, Florida

31  Statutes, is amended to read:

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  1         732.107  Escheat.--

  2         (4)  At any time within 10 years after receipt of the

  3  property by the state the granting of letters, a person

  4  claiming to be entitled to the estate of the decedent may

  5  petition to reopen the administration and assert his or her

  6  rights to escheated property. If the claimant is entitled to

  7  any of the estate of the decedent, the court shall fix the

  8  amount to which he or she is entitled, and it shall be repaid

  9  to him or her with interest at the legal rate by the officials

10  charged with the disbursement of state school funds.  If no

11  claim is asserted within the time fixed, the title of the

12  state to the property and the proceeds shall become absolute.

13         Section 33.  Subsection (15) is added to section

14  493.6102, Florida Statutes, to read:

15         493.6102  Inapplicability of parts I through IV of this

16  chapter.--This chapter shall not apply to:

17         (15)  Any person licensed as a Florida-certified public

18  accountant pursuant to chapter 473 and who is engaged in the

19  recovery of unclaimed property and the location of apparent

20  owners of such property pursuant to the provisions of chapter

21  717.

22         Section 34.  Section 717.137, Florida Statutes, is

23  repealed.

24         Section 35.  This act shall take effect October 1,

25  2001.

26

27            *****************************************

28                          HOUSE SUMMARY

29
      Revises and clarifies provisions of ch. 717, F.S.,
30    relating to disposition of unclaimed property, to comport
      with other states and model codes. Deletes references to
31    unclaimed property as being abandoned. See bill for
      details.
                                  35

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