Senate Bill sb1398

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    Florida Senate - 2001                                  SB 1398

    By Senator Carlton





    24-510C-01                                       See CS/HB 107

  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         717.129, F.S.; changing references to property

11         from being abandoned to being unclaimed;

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

13         providing an additional criterion for certain

14         property in financial organizations being

15         presumed unclaimed; amending s. 717.112, F.S.,

16         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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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




  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         revising provisions relating to escheat of

30         certain property to the state; revising

31         provisions relating to entitlement to,

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




  1         procedures for payment or assignment of, or

  2         distributions of certain proceeds; amending s.

  3         215.965, F.S., to conform; amending s.

  4         493.6101, F.S., to conform; amending s.

  5         493.6102, F.S.; specifying nonapplication to

  6         certain persons; repealing s. 717.137, F.S.,

  7         relating to effect and application of certain

  8         provisions; providing an effective date.

  9

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

11

12         Section 1.  Present subsections (8) through (18) of

13  section 717.101, Florida Statutes, are renumbered as

14  subsections (9) through (19), respectively, a new subsection

15  (8) is added to that section, and renumbered subsections (13)

16  and (15) are amended, to read:

17         717.101  Definitions.--As used in this chapter, unless

18  the context otherwise requires:

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

20  prudent methods under particular circumstances to locate

21  apparent owners of inactive accounts using the taxpayer

22  identification number or social security number, if known,

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

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

25  mailing to the last known address unless the last known

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

27  agency or company capable of conducting such search and

28  providing updated addresses.

29         (13)(12)  "Last known address" means a description of

30  the location of the apparent owner sufficient for the purpose

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

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




  1  reporting, and remitting property to the department which is

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

  3  partial description of the location of the apparent owner

  4  sufficient to establish the apparent owner was a resident of

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

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

  7         (15)(14)  "Owner" means a depositor in the case of a

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

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

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

11  equitable interest in property subject to this chapter or his

12  or her legal representative.

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

14  Statutes, is amended to read:

15         717.102  Property presumed unclaimed abandoned; general

16  rule.--

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

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

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

20  business and has remained unclaimed by the owner fails to

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

22  it becomes payable or distributable is presumed unclaimed

23  abandoned, except as otherwise provided by this chapter.

24         Section 3.  Section 717.103, Florida Statutes, is

25  amended to read:

26         717.103  General rules for taking custody of intangible

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

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

29  subject to the custody of the department as unclaimed property

30  if the conditions leading to a presumption that the property

31

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




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

  2  717.105-717.116 are satisfied and:

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

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

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

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

  7  established that the last known address of the person entitled

  8  to the property is in this state;

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

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

11  that:

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

13  the property is in this state; or

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

15  governmental subdivision or agency of this state and has not

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

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

18  property;

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

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

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

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

23  escheat or unclaimed property law is not applicable to the

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

25  governmental subdivision or agency of this state;

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

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

28  the holder is a domiciliary or a government or governmental

29  subdivision or agency of this state; or

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

31  occurred in this state, and;

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




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

  2  other person entitled to the property is unknown; or

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

  4  other person entitled to the property is in 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; and

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

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

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

11  applicable to the property.

12         Section 4.  Section 717.1035, Florida Statutes, is

13  amended to read:

14         717.1035  Property originated or issued by this state,

15  any political subdivision of this state, or any entity

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

17  state.--

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

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

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

21  federal, state, or local government or governmental

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

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

24  not claimed or corresponded in writing concerning the property

25  within 3 years after the date prescribed for payment or

26  delivery, is presumed to be unclaimed property abandoned and

27  subject to the custody of this state as such unclaimed

28  property if:

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

30  and

31

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




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

  2  intangible property is this state or any political subdivision

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

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

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

  6  to property which is or may be presumed unclaimed abandoned

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

  8  provision of law containing a dormancy period different than

  9  that prescribed in subsection (1).

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

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

12  thereafter, regardless of when such property became or becomes

13  presumptively unclaimed abandoned.

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

15  717.104, Florida Statutes, are amended to read:

16         717.104  Traveler's checks and money orders.--

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

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

19  years after its issuance is presumed unclaimed abandoned

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

21  with the issuer concerning it or otherwise indicated an

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

23  with prepared by an employee of the issuer.

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

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

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

27  years after its issuance is presumed unclaimed abandoned

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

29  with the issuer concerning it or otherwise indicated an

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

31  with prepared by an employee of the issuer.

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




  1         (5)  Notwithstanding any other provision of this

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

  3  checks, money orders, and similar written instruments presumed

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

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

  6  prior to January 1, 1974.

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

  8  Statutes, is amended to read:

  9         717.105  Checks, drafts, and similar instruments issued

10  or certified by banking and financial organizations.--

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

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

13  on which a banking or financial organization is directly

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

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

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

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

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

19  has communicated in writing with the banking or financial

20  organization concerning it or otherwise indicated an interest

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

22  prepared by an employee of the banking or financial

23  organization.

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

25  Florida Statutes, are amended to read:

26         717.106  Bank deposits and funds in financial

27  organizations.--

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

29  a banking or financial organization, including deposits that

30  are automatically renewable, and any funds paid toward the

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

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




  1  other interest in a banking or financial organization is

  2  presumed unclaimed abandoned unless the owner has, within 5

  3  years:

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

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

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

  7         (b)  Communicated in writing with the banking or

  8  financial organization concerning the property;

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

10  evidenced by a memorandum or other record on file with

11  prepared by an employee of the banking or financial

12  organization;

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

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

15  banking or financial organization communicates in writing with

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

17  presumed unclaimed abandoned under this subsection at the

18  address to which communications regarding the other property

19  regularly are sent; or

20         (e)  Had another relationship with the banking or

21  financial organization concerning which the owner has:

22         1.  Communicated in writing with the banking or

23  financial organization; or

24         2.  Otherwise indicated an interest as evidenced by a

25  memorandum or other record on file with prepared by an

26  employee of the banking or financial organization and if the

27  banking or financial organization communicates in writing with

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

29  unclaimed abandoned under this subsection at the address to

30  which communications regarding the other relationship

31  regularly are sent; or.

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




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

  2  financial organization or a subsidiary of such banking or

  3  financial organization, which was not returned as

  4  undeliverable, in the ordinary course of business at the

  5  address reflected in the banking or financial organization's

  6  records.

  7         (5)  If the documents establishing a deposit described

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

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

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

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

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

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

14  Statutes, is amended to read:

15         717.107  Funds owing under life insurance policies.--

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

17  insurance policy or annuity contract which has matured or

18  terminated are presumed unclaimed abandoned if unclaimed for

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

20  established from the records of the insurance company holding

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

22  is presumed unclaimed abandoned if such property is not

23  claimed unclaimed for more than 2 years.

24         Section 9.  Section 717.108, Florida Statutes, is

25  amended to read:

26         717.108  Deposits held by utilities.--Any deposit,

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

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

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

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

31

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




  1  termination of the services for which the deposit or advance

  2  payment was made is presumed unclaimed abandoned.

  3         Section 10.  Section 717.109, Florida Statutes, is

  4  amended to read:

  5         717.109  Refunds held by business associations.--Except

  6  to the extent otherwise ordered by the court or administrative

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

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

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

10  year after it became payable in accordance with the final

11  determination or order providing for the refund, regardless of

12  whether the final determination or order requires any person

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

14  unclaimed abandoned.

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

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

17         717.1101  Stock and other intangible interests in

18  business associations.--

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

20  stock or other intangible ownership interest in a business

21  association, the existence of which is evidenced by record

22  available to the association, is presumed unclaimed abandoned

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

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

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

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

27         (a)  Communicated in writing with the association or

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

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

30         (b)  Otherwise communicated with the association

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

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




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

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

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

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

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

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

  7  the interest shall not be presumed unclaimed abandoned unless

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

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

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

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

12  presumption that the interest is unclaimed of abandonment

13  commences on the date payment of the first such unclaimed

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

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

16  during the presumptive period, the period continues to run

17  until there have been five consecutive dividends,

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

19  owner.

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

21  abandonment ceases immediately upon the occurrence of one or

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

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

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

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

26  unclaimed of abandonment commences and relates back only to

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

28  became due and payable.

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

30  unclaimed abandoned under this section, any dividend,

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

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




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

  2  abandoned, is presumed unclaimed abandoned.

  3         Section 12.  Section 717.111, Florida Statutes, is

  4  amended to read:

  5         717.111  Property of business associations held in

  6  course of dissolution.--All intangible property distributable

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

  8  business association which is not claimed remains unclaimed by

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

10  final distribution is presumed unclaimed abandoned.

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

12  Statutes, is amended, and subsection (5) is added to that

13  section, to read:

14         717.112  Property held by agents and fiduciaries.--

15         (1)  All intangible property and any income or

16  increment thereon held in a fiduciary capacity for the benefit

17  of another person is presumed unclaimed abandoned unless the

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

19  distributable increased or decreased the principal, accepted

20  payment of principal or income, communicated concerning the

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

22  memorandum or other record on file with prepared by the

23  fiduciary or an employee of the fiduciary.

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

25  increment thereon, issued by a government or governmental

26  subdivision or agency, public corporation, or public authority

27  and held in an agency capacity for the governmental

28  subdivision, agency, public corporation, or public authority

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

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

31  become payable or distributable, increased or decreased the

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




  1  principal, accepted payment of the principal or income,

  2  communicated concerning the property, or otherwise indicated

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

  4  other record on file with the fiduciary.

  5         Section 14.  Section 717.113, Florida Statutes, is

  6  amended to read:

  7         717.113  Property held by courts and public

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

  9  court, government or governmental subdivision or agency,

10  public corporation, or public authority that has not been

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

12  after it became payable or distributable is presumed unclaimed

13  abandoned. Notwithstanding the provisions of this section,

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

15  377.247 are presumed unclaimed abandoned only if the funds

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

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

18  well.

19         Section 15.  Section 717.115, Florida Statutes, is

20  amended to read:

21         717.115  Wages.--Unpaid wages, including wages

22  represented by unpresented payroll checks, owing in the

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

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

25  after becoming payable are presumed unclaimed abandoned.

26         Section 16.  Section 717.116, Florida Statutes, is

27  amended to read:

28         717.116  Contents of safe-deposit box or other

29  safekeeping repository.--All tangible and intangible property

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

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

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




  1  and proceeds resulting from the sale of the property permitted

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

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

  4  on the box or other repository has expired are presumed

  5  unclaimed abandoned.

  6         Section 17.  Section  717.117, Florida Statutes, is

  7  amended to read:

  8         717.117  Report of unclaimed abandoned property.--

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

10  tangible or intangible, presumed unclaimed abandoned and

11  subject to custody as unclaimed property under this chapter

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

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

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

15  required information via electronic medium as the department

16  may prescribe by rule.

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

18  private corporation or unincorporated association shall be

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

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

21  must include:

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

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

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

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

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

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

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

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

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

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

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




  1  social security number, or federal employer identification

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

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

  4  beneficiary according to records of the insurance company

  5  holding or owing the funds.

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

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

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

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

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

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

12  safekeeping repository which consist of documents or writings

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

14  shall not be presumed unclaimed abandoned.

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

16  description of the property and the amount appearing from the

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

18  reported in the aggregate.

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

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

21  apparent owner with respect to the property.

22         (f)  Any person or business entity holding funds

23  presumed unclaimed and having abandoned of a total value of

24  $10 or less may file a zero balance negative or nothing-owed

25  report for that reporting period.  The balance brought forward

26  to the new reporting period is zero.

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

28  prescribe prescribes by rule as necessary for the

29  administration of this chapter.

30

31

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




  1         (h)  Credit balances, customer overpayments, security

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

  3  not be presumed unclaimed abandoned.

  4         (2)(3)  If the holder of person holding property

  5  presumed unclaimed abandoned and subject to custody as

  6  unclaimed property is a successor holder to other persons who

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

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

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

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

11  addresses of each prior previous holder of the property.

12  Compliance with this subsection means the holder exercises

13  reasonable and prudent efforts to determine the names of all

14  prior holders.

15         (3)(4)  The report must be filed before May 1 of each

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

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

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

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

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

21  administration of this chapter, the department may waive any

22  penalty due with appropriate justification.  On written

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

24  department may postpone the reporting date.

25         (4)(5)  Holders of inactive accounts shall use due

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

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

28  holder in possession of property presumed abandoned and

29  subject to custody as unclaimed property under this chapter

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

31

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




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

  2  possession of property subject to this chapter if:

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

  4  holder shall conduct at least one search for the apparent

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

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

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

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

  9  as undeliverable.

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

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

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

13  conducting one annual search for the owners of all accounts

14  which have become inactive during the prior year.

15         2.  Within 30 days after receiving updated address

16  information, the holder shall provide notice by telephone or

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

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

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

20  notice shall also provide the apparent owner with the address

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

22  may claim the property or reestablish the inactive account.

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

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

25  inaccurate.

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

27  the statute of limitations.

28         (5)(6)  Any holder of intangible property may file with

29  the department a petition for determination that the property

30  is unclaimed abandoned requesting the department to accept

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

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




  1  circumstances that exist, contain the information required by

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

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

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

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

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

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

  8  their justification for such action, the department may place

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

10  abandoned property "holder."

11         (7)(8)  This section shall not apply to the unclaimed

12  patronage refunds as provided for by contract or through bylaw

13  provisions of entities organized under chapter 425.

14         Section 18.  Section 717.118, Florida Statutes, is

15  amended to read:

16         717.118  Notice and publication of lists of unclaimed

17  abandoned property.--

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

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

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

21  provide all the citizens of this state an effective and

22  efficient program for the recovery of unclaimed abandoned

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

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

25  the existence of unclaimed abandoned property held by the

26  department. Such active attempt to locate apparent owners

27  shall include any attempt by the department to directly

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

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

30  television, on the Internet, or through other promotional

31  efforts and items in which the department does not directly

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




  1  attempt to contact the owner are expressly declared to be

  2  passive attempts. Nothing in this subsection precludes other

  3  agencies or entities of state government from notifying owners

  4  of the existence of unclaimed property or attempting to locate

  5  apparent owners of unclaimed property. may include post,

  6  print, visual, telecommunications, or electronic media.

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

  8  attempt to notify owners under this subsection. The department

  9  shall implement such notification within 13 months following

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

11         (2)  The following notification requirements shall

12  apply:

13         (a)  Notifications that are published or televised may

14  shall consist of the names of apparent owners of unclaimed

15  abandoned property, listed in alphabetical order, and

16  information regarding recovery of unclaimed abandoned property

17  from the department. Such notification may shall be televised

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

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

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

21  business. Published notifications may must be in accordance

22  with s. 50.011.

23         (b)  Notification provided directly to individual

24  apparent owners shall consist of a description of the property

25  and information regarding recovery of unclaimed abandoned

26  property from the department.

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

28  items of more than $100.

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

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

31  presumed unclaimed abandoned under s. 717.104.

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




  1         Section 19.  Section 717.119, Florida Statutes, is

  2  amended to read:

  3         717.119  Payment or delivery of unclaimed abandoned

  4  property.--

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

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

  7  department all unclaimed abandoned property required to be

  8  reported.  Such payment or delivery shall accompany the report

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

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

11  department by electronic funds transfer.

12         (3)(2)  If the owner establishes the right to receive

13  the unclaimed abandoned property to the satisfaction of the

14  holder before the property has been delivered to the

15  department or it appears that for some other reason the

16  presumption that the property is unclaimed of abandonment is

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

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

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

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

21  error in the presumption that the property was unclaimed of

22  abandonment.

23         (4)(3)  All stock or other intangible ownership

24  interest reported under this chapter on the annual report

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

26  remitted to the department with the report.  Reasonable fees

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

28  proceeds for the costs of selling the stock or other

29  intangible ownership interest.  Upon delivery of the stock or

30  other intangible ownership interest net proceeds to the

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

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




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

  2  of all liability of every kind in accordance with the

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

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

  5  the department of the stock or other intangible ownership

  6  interest net proceeds.

  7         (5)(4)  All intangible and tangible property held in a

  8  safe-deposit box or any other safekeeping repository reported

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

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

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

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

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

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

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

16  identified as having a numismatic value shall be remitted to

17  the department in their original form.

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

19  department filed on or before the applicable payment or

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

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

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

23  administration of this chapter,

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

25  appropriate justification, as provided by rule.

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

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

28  the delivery.

29         (6)(5)  Any holder may request an extension in writing

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

31  circumstances exist for the late delivery of the property.

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




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

  2  an extension in writing.

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

  4  Florida Statutes, is amended to read:

  5         717.1201  Custody by state; holder relieved from

  6  liability; reimbursement of holder paying claim; reclaiming

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

  8  repository charges.--

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

10  means that:

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

12  attempt to comply with this chapter.

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

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

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

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

17  abandoned for the purposes of this chapter.

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

19  which the delivery was made did not meet reasonable commercial

20  standards of practice in the industry.

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

22  717.122, Florida Statutes, are amended to read:

23         717.122  Public sale of unclaimed abandoned property.--

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

25  department after the receipt of unclaimed abandoned property

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

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

28  department the most favorable market for the property involved

29  exists.  The department may decline the highest bid and

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

31  department the bid is insufficient.  The department shall have

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




  1  the discretion to withhold from sale any unclaimed abandoned

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

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

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

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

  6  department determines appropriate.  Any sale held under this

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

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

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

10         (2)  Securities listed on an established stock exchange

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

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

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

14  the department deems advisable.  The department may authorize

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

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

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

18  The department shall reimburse owners accounts for these

19  brokerage fees from the State School Fund unless the

20  securities are sold at the owner's request.

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

22  interest to do otherwise, all securities presumed unclaimed

23  abandoned and delivered to the department may be sold upon

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

25  is entitled to receive either the securities delivered to the

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

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

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

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

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

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

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




  1  the value of the property occurring after delivery by the

  2  holder to the state.

  3         Section 22.  Section 717.123, Florida Statutes, is

  4  amended to read:

  5         717.123  Deposit of funds.--

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

  7  the proceeds from the sale of unclaimed abandoned property

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

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

10  except that The department shall retain, from funds received

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

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

13  make prompt payment of claims allowed by the department and

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

15  administering and enforcing this chapter. All remaining funds

16  received by the department under this chapter shall be

17  deposited by the department into the shall be reimbursed from

18  the State School Fund.

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

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

21  reports to be entitled to the unclaimed abandoned property in

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

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

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

25  insurance corporation, its number, the name of the

26  corporation, and the amount due.

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

28  Statutes, is amended to read:

29         717.124  Filing of claim with department.--

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

31  or her rights to receive payment to an attorney,

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




  1  Florida-certified public accountant, or private investigative

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

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

  4  a written agreement with such claimant, the department is

  5  authorized to make distribution of the property or money in

  6  accordance with such power of attorney assignment.

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

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

  9  authorized pursuant to a written power of attorney.

10         2.  Payments of fees authorized pursuant to a written

11  power of attorney for approved cash claims shall be forwarded

12  to the designated attorney, Florida-certified public

13  accountant, or private investigative agency. Such payments may

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

15  periodic schedule as the department may define by rule,

16  provided the payment intervals do not exceed 31 days.

17         3.  Payments of approved claims for unclaimed

18  securities and other intangible ownership interests made to an

19  attorney, Florida-certified public accountant, or private

20  investigative agency shall be promptly deposited into a trust

21  or escrow account which is regularly maintained by the

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

23  investigative agency in a financial institution authorized to

24  accept such deposits and located in this state.

25         (c)  Distribution of unclaimed property by the

26  attorney, Florida-certified public accountant, or private

27  investigative agency to the claimant shall be made within 10

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

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

30  the agreement protests in writing such distribution before it

31  is made.

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




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

  2  criminally liable for any property or funds distributed

  3  pursuant to this section subsection, provided such

  4  distribution is made in good faith.

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

  6  Florida Statutes, is amended to read:

  7         717.1241  Conflicting claims.--

  8         (1)  When ownership has been established but

  9  conflicting claims have been received by filed, the

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

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

12  department;

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

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

15  same day; or

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

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

18  representatives are received by the department on the same

19  day. as follows:

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

21  file claims for the same property:

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

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

24  not irrevocably assigned the unclaimed property in whole or in

25  part to the owner's representative; or

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

27  717.124 if the owner has irrevocably assigned the unclaimed

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

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

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

31

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




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

  2  applies;

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

  4  contract with the owner within 12 months after the property

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

  6  paragraph (b) applies.

  7         Section 25.  Section 717.1243, Florida Statutes, is

  8  amended to read:

  9         717.1243  Small estate accounts Transfer of unclaimed

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

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

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

13  shall not be accompanied by necessary to accompany the claim

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

15  the department an affidavit, signed by all beneficiaries,

16  stating that all the beneficiaries heirs have amicably agreed

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

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

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

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

21  lawful claims have been paid no probate proceedings have been

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

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

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

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

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

27  probate proceedings have been instituted upon the estate.

28         (2)  Each person receiving property under this section

29  shall be personally liable for all lawful claims against the

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

31  the property received by such person under this section,

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




  1  exclusive of the property exempt from claims of creditors

  2  under the constitution and laws of this state.

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

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

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

  6  appropriate proceedings against those who received the

  7  property and shall be awarded taxable costs as in chancery

  8  actions, including attorney's fees.

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

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

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

12  proceeding is pending.

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

14  717.125, Florida Statutes, are amended to read:

15         717.125  Claim of another state to recover property;

16  procedure.--

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

18  delivered to the department under this chapter, another state

19  may recover the property if:

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

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

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

23  presumed unclaimed abandoned under this chapter, and the other

24  state establishes that the last known address of the apparent

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

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

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

28  by that state;

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

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

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

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




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

  2  subject to a claim of abandonment by that state;

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

  4  they did not accurately reflect the actual owner of the

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

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

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

  8  state;

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

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

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

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

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

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

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

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

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

18  to a claim of abandonment by that state.

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

20  unclaimed abandoned property under this section must be

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

22  department shall determine the claim within 90 days after it

23  is presented.  Such determination shall contain a notice of

24  rights provided by ss. 120.569 and 120.57.

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

26  Statutes, is amended to read:

27         717.129  Periods of limitation.--

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

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

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

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

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




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

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

  3  presumed unclaimed abandoned or affect any duty to file a

  4  report or to pay or deliver unclaimed abandoned property to

  5  the department as required by this chapter.

  6         Section 28.  Section 717.1315, Florida Statutes, is

  7  created to read:

  8         717.1315  Retention of records by owner's

  9  representative.--

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

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

12  business conducted under this chapter to enable the department

13  to determine whether such owner's representative is complying

14  with this chapter and the rules adopted by the department

15  under this chapter. Every owner's representative shall

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

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

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

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

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

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

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

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

24  department designating in the written notice the office at

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

26  representative shall make all books, accounts, and records

27  available at a convenient location in this state upon request

28  of the department.

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

30  Statutes, is amended to read:

31

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




  1         717.132  Enforcement; cease and desist orders;

  2  administrative fines.--

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

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

  5  department may impose and collect an administrative fine

  6  against any person found to have violated any provision of

  7  this chapter, any rule or order promulgated under this

  8  chapter, or any written agreement entered into with the

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

10  violation. All fines collected under this subsection shall be

11  deposited as received in the Unclaimed Property Trust Fund.

12         Section 30.  Section 717.135, Florida Statutes, is

13  amended to read:

14         717.135  Agreement to locate reported property.--

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

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

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

18  717.117 shall either:

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

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

21  $250 and above or to $25 for all contracts with dollar values

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

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

24  signed by the apparent owner. Fees for accounts containing

25  securities or other intangible ownership interests, which

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

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

28  national exchange or other market on which the ownership

29  interest is regularly traded at the time the securities or

30  other ownership interest is remitted to the owner or the

31  owner's representative. Fees for tangible property or

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




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

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

  3  time the ownership interest is transferred or remitted to the

  4  owner or the owner's representative; or

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

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

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

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

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

10  the property, and identify which of the following categories

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

12  recover:

13         1.  Cash accounts.

14         2.  Stale dated checks.

15         3.  Life insurance or annuity contract assets.

16         4.  Utility deposits.

17         5.  Securities or other interests in business

18  associations.

19         6.  Wages.

20         7.  Accounts receivable.

21         8.  Contents of safe-deposit boxes

22

23  be unenforceable if made within 90 days after attempted

24  notification by the department or within 12 months after such

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

26  section shall not apply to contracts made in connection with

27  guardianship proceedings or the probate of an estate.

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

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

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

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

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




  1         (b)  Agreements for recovery of accounts containing

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

  3  tangible ownership interests, or other types of accounts,

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

  5  unclaimed property and the percentage value of compensation to

  6  be paid to the owner's representative.

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

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

  9  and, if available, the taxpayer identification number or

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

11  such agreements to pay compensation shall be signed by the

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

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

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

15  shall contain the following statement directly above the

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

17  TO PAY COMPENSATION TO RECOVER ABANDONED PROPERTY REPORTED TO

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

19  AFTER THE ATTEMPTED NOTIFICATION OR WITHIN 12 MONTHS AFTER

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

21  agreement which does not contain this statement shall be

22  unenforceable.

23         Section 31.  Section 717.138, Florida Statutes, is

24  amended to read:

25         717.138  Rulemaking authority.--The Department of

26  Banking and Finance shall administer and provide for the

27  enforcement of this chapter. The department has authority to

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

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

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

31  required by this chapter.

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




  1         Section 32.  Section 732.107, Florida Statutes, is

  2  amended to read:

  3         732.107  Escheat.--

  4         (1)  When a person dies, leaving an estate dies without

  5  being survived by any person entitled to a part of it, such

  6  part the property shall escheat to the state.

  7         (2)(a)  In this event, or when doubt exists about the

  8  existence of any person entitled to the estate, the personal

  9  representative shall institute a proceeding for the

10  determination of beneficiaries, as provided in this code,

11  within 1 year after letters have been issued to him or her,

12  and notice shall be served on the Department of Legal Affairs.

13  If the personal representative fails to institute the

14  proceeding within the time fixed, it may be instituted by the

15  Department of Legal Affairs.

16         (b)  On or before January 15 of each year, each court

17  shall furnish to the department a list of all estates being

18  administered in which no person appears to be entitled to the

19  property and the personal representative has not instituted a

20  proceeding for the determination of beneficiaries.

21         (3)  If the court determines that there is no person

22  entitled to the estate and that the estate escheats, the

23  Property that escheats shall be sold as provided in the

24  Florida Probate Rules and the proceeds paid to the Treasurer

25  of the state and deposited by him or her in the State School

26  Fund within a reasonable time to be fixed by the court.

27         (3)(4)  At any time within 10 years after the payment

28  to the Treasurer granting of letters, a person claiming to be

29  entitled to the proceeds estate of the decedent may petition

30  to reopen the administration to and assert entitlement his or

31  her rights to the proceeds escheated property. If the claimant

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




  1  is entitled to any of the estate of the decedent, the court

  2  shall fix the amount to which he or she is entitled, and it

  3  shall be repaid to him or her with interest at the legal rate

  4  by the officials charged with the disbursement of state school

  5  funds.  If no claim is timely asserted within the time fixed,

  6  the state's rights title of the state to the property and the

  7  proceeds shall become absolute.

  8         (4)(5)  The Department of Legal Affairs shall represent

  9  the state in all proceedings concerning escheated estates.

10         (5)(6)(a)  If a person entitled to the proceeds funds

11  assigns the his or her rights to receive payment to an

12  attorney, Florida-certified public accountant, or private

13  investigative agency which is duly licensed to do business in

14  this state pursuant to a written agreement with such person,

15  the Department of Banking and Finance is authorized to make

16  distribution in accordance with such assignment.

17         (b)  Payments made to an attorney, Florida-certified

18  public accountant, or private investigative agency shall be

19  promptly deposited into a trust or escrow account which is

20  regularly maintained by the attorney, Florida-certified public

21  accountant, or private investigative agency in a financial

22  institution authorized to accept such deposits and located in

23  this state.

24         (c)  Distribution by the attorney, Florida-certified

25  public accountant, or private investigative agency to the

26  person entitled to the proceeds funds shall be made within 10

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

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

29  the agreement protests the in writing such distribution in

30  writing before it is made.

31

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




  1         (d)  The department shall not be civilly or criminally

  2  liable for any proceeds funds distributed pursuant to this

  3  subsection, provided such distribution is made in good faith.

  4         (7)  Except as herein provided, escheated estates shall

  5  be administered as other estates.

  6         Section 33.  Section 215.965, Florida Statutes, is

  7  amended to read:

  8         215.965  Disbursement of state moneys.--Except as

  9  provided in s. 17.076, s. 253.025(14), s. 259.041(18), s.

10  717.124(5), s. 732.107(5)(6), or s. 733.816(5), all moneys in

11  the State Treasury shall be disbursed by state warrant, drawn

12  by the Comptroller upon the State Treasury and payable to the

13  ultimate beneficiary. This authorization shall include

14  electronic disbursement.

15         Section 34.  Paragraph (d) of subsection (17) of

16  section 493.6101, Florida Statutes, is amended to read:

17         493.6101  Definitions.--

18         (17)  "Private investigation" means the investigation

19  by a person or persons for the purpose of obtaining

20  information with reference to any of the following matters:

21         (d)  The whereabouts of missing persons, owners of

22  unclaimed abandoned property or escheated property, or heirs

23  to estates.

24         Section 35.  Subsection (15) is added to section

25  493.6102, Florida Statutes, to read:

26         493.6102  Inapplicability of parts I through IV of this

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

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

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

30  recovery of unclaimed property and the location of apparent

31

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    Florida Senate - 2001                                  SB 1398
    24-510C-01                                       See CS/HB 107




  1  owners of such property pursuant to the provisions of chapter

  2  717.

  3         Section 36.  Section 717.137, Florida Statutes, is

  4  repealed.

  5         Section 37.  This act shall take effect October 1,

  6  2001.

  7

  8            *****************************************

  9                          SENATE SUMMARY

10    Revises and clarifies provisions of ch. 717, F.S.,
      relating to disposition of unclaimed property, to comport
11    with other states and model codes. Changes references
      from abandoned property to unclaimed property. (See bill
12    for details.)

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