HOUSE AMENDED
PRIOR PRINTER'S NOS. 1826, 1840, 2025, PRINTER'S NO. 2134
2079
No. 1366 Session of 2002
INTRODUCED BY CONTI, THOMPSON, EARLL, HOLL, COSTA, TOMLINSON,
ORIE, WAUGH, MOWERY, SCHWARTZ, BELL AND D. WHITE,
MARCH 22, 2002
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
JUNE 24, 2002
AN ACT
1 Amending the act of April 9, 1929 (P.L.343, No.176), entitled,
2 as amended, "An act relating to the finances of the State
3 government; providing for the settlement, assessment,
4 collection, and lien of taxes, bonus, and all other accounts
5 due the Commonwealth, the collection and recovery of fees and
6 other money or property due or belonging to the Commonwealth,
7 or any agency thereof, including escheated property and the
8 proceeds of its sale, the custody and disbursement or other
9 disposition of funds and securities belonging to or in the
10 possession of the Commonwealth, and the settlement of claims
11 against the Commonwealth, the resettlement of accounts and
12 appeals to the courts, refunds of moneys erroneously paid to
13 the Commonwealth, auditing the accounts of the Commonwealth
14 and all agencies thereof, of all public officers collecting
15 moneys payable to the Commonwealth, or any agency thereof,
16 and all receipts of appropriations from the Commonwealth,
17 authorizing the Commonwealth to issue tax anticipation notes
18 to defray current expenses, implementing the provisions of
19 section 7(a) of Article VIII of the Constitution of
20 Pennsylvania authorizing and restricting the incurring of
21 certain debt and imposing penalties; affecting every
22 department, board, commission, and officer of the State
23 government, every political subdivision of the State, and
24 certain officers of such subdivisions, every person,
25 association, and corporation required to pay, assess, or
26 collect taxes, or to make returns or reports under the laws
27 imposing taxes for State purposes, or to pay license fees or
28 other moneys to the Commonwealth, or any agency thereof,
29 every State depository and every debtor or creditor of the
30 Commonwealth," FURTHER PROVIDING FOR SETTLEMENT AND <--
1 COLLECTION OF STATE TAXES; further regulating abandoned
2 property; REQUIRING PUBLIC NOTICE OF CERTAIN REAL PROPERTY <--
3 PURCHASES BY THE COMMONWEALTH; PROVIDING FOR A RIGHT OF
4 CERTAIN PUBLIC OFFICIALS TO EXAMINE AND REVIEW INSPECTOR
5 GENERAL REPORTS; AND MAKING A REPEAL.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. The definitions of "holder" and "secretary" in <--
9 section 1301.1 of the act of April 9, 1929 (P.L.343, No.176),
10 known as The Fiscal Code, added December 9, 1982 (P.L.1057,
11 No.248), are amended to read:
12 SECTION 1. SECTION 202 OF THE ACT OF APRIL 9, 1929 (P.L.343, <--
13 NO.176), KNOWN AS THE FISCAL CODE, IS AMENDED BY ADDING A
14 SUBSECTION TO READ:
15 SECTION 202. SETTLEMENT AND COLLECTION OF STATE TAXES.--THE
16 DEPARTMENT OF REVENUE SHALL HAVE THE POWER, AND ITS DUTY SHALL
17 BE--
18 * * *
19 (P) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE
20 CONTRARY, IN THE CASE OF TAXABLE INCOME COLLECTED BY THE
21 DEPARTMENT OF REVENUE UNDER ARTICLE IV OF THE ACT OF MARCH 4,
22 1971 (P.L.6, NO.2), KNOWN AS THE "TAX REFORM CODE OF 1971," A
23 NET LOSS OF TAXABLE INCOME FOR THE 1977 TAXABLE YEAR MAY BE
24 CARRIED OVER FOR TEN (10) TAXABLE YEARS AND A NET LOSS OF
25 TAXABLE INCOME FOR THE 1998 TAXABLE YEAR AND ANY YEAR THEREAFTER
26 MAY BE CARRIED OVER FOR TWENTY (20) TAXABLE YEARS.
27 SECTION 2. THE DEFINITIONS OF "HOLDER" AND "SECRETARY" IN
28 SECTION 1301.1 OF THE ACT, ADDED DECEMBER 9, 1982 (P.L.1057,
29 NO.248), ARE AMENDED TO READ:
30 Section 1301.1. Definitions.--As used in this article,
31 unless the context otherwise requires:
32 * * *
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1 "Holder" shall include any person in possession of property
2 subject to this article belonging to another, or who is a
3 trustee in case of a trust, or is indebted to another on an
4 obligation subject to this article or any financial institution
5 which has paid amounts and sums to the [secretary] State
6 Treasurer under subsection (c) of section 1301.13 of this
7 article.
8 * * *
9 ["Secretary" shall mean the Secretary of Revenue of the
10 Commonwealth of Pennsylvania.]
11 * * *
12 Section 2 3. Sections 1301.3, 1301.4, 1301.5, 1301.6 and <--
13 1301.8 of the act, added December 9, 1982 (P.L.1057, No.248),
14 are amended to read:
15 Section 1301.3. Property Held by Financial Institutions.--
16 The following property held or owing by a financial institution
17 is presumed abandoned and unclaimed:
18 1. Any demand, saving or matured time deposit in a financial
19 institution, or any funds paid toward the purchase of shares or
20 other interest in a savings association, savings and loan or
21 building and loan association, excluding any charges that may
22 lawfully be withheld, unless within the preceding [seven (7)]
23 five (5) years the owner has:
24 (i) Increased the amount of the deposit, shares or claim,
25 otherwise than by the crediting of accrued interest, or
26 decreased it, or presented to the holder evidence of the
27 deposit, shares or claim; or
28 (ii) Corresponded in writing with the holder concerning the
29 deposit, shares or claim; or
30 (iii) Otherwise indicated an interest in the deposit, shares
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1 or claim as evidenced by a writing on file with the holder; or
2 (iv) Received tax reports or regular statements of the
3 deposits, shares or claim by certified mail or other method of
4 communication that will provide the financial institution with a
5 record that such report or statement was transmitted and
6 received; or
7 (v) Owned other property held by the financial institution
8 to which subclause (i), (ii), (iii) or (iv) applies.
9 2. A deposit under clause 1 shall include any interest or
10 dividend which the financial institution would pay to the owner
11 upon claim therefor. The charges which may be excluded hereunder
12 shall not include any charge due to inactivity imposed, directly
13 or indirectly, after December 31, 1981 unless there is a valid
14 and enforceable written contract between the financial
15 institution and the owner of the deposit pursuant to which the
16 financial institution may impose said charge.
17 3. Any sum payable on checks or on written instruments
18 including, but not limited to, drafts[, money orders] and <--
19 travelers checks, on which a financial institution is directly
20 liable, and (i) which have been outstanding for more than [seven
21 (7)] five (5) years OR IN THE CASE OF MONEY ORDERS FOR MORE THAN <--
22 SEVEN (7) YEARS, or in the case of travelers checks, fifteen
23 (15) years, from the date payable[,] or from the date of
24 issuance if payable on demand; and (ii) the owner of which has
25 not written to the financial institution concerning it, nor
26 otherwise indicated an interest as evidenced by a writing on
27 file with the financial institution.
28 4. Any funds or other personal property, tangible or
29 intangible, removed from a safe deposit box or any other
30 safekeeping repository in the Commonwealth on which the lease or
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1 rental period has expired due to nonpayment of rental charges or
2 other reason, or any surplus amounts arising from the sale
3 thereof pursuant to law, if the same has not been claimed by the
4 owner for more than [seven (7)] five (5) years from the date on
5 which the rental period expired.
6 5. The following deposits described in clause 1 shall be
7 excluded from the presumption of being abandoned and unclaimed
8 only while the conditions described below are in effect:
9 (i) Deposits during any period when withdrawals may be made
10 only upon an order of a court of competent jurisdiction.
11 (ii) Deposits established under 20 Pa.C.S. Ch. 53 (relating
12 to Pennsylvania Uniform Transfers to Minors Act) or similar law
13 concerning transfers to minors, while the custodianship has not
14 been terminated.
15 (iii) Burial reserve accounts and similar deposits
16 established under written agreements to provide for the funeral
17 and/or burial expenses of a person while the person is still
18 alive.
19 Section 1301.4. Property Held by Insurers.--(a) In the case
20 of life insurance, the following property held or owing by an
21 insurer is presumed abandoned and unclaimed:
22 1. Any moneys held or owing by an insurer as established by
23 its records under any contract of annuity or policy of life
24 insurance including premiums returnable or dividends payable,
25 unclaimed and unpaid for more than [seven (7)] five (5) years
26 after the moneys have or shall become due and payable under the
27 provisions of such contract of annuity or policy of insurance. A
28 life insurance policy not matured by actual proof of the death
29 of the insured is deemed to be matured and the proceeds thereof
30 are deemed to be due and payable if such policy was in force
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1 when the insured attained the limiting age under the mortality
2 table on which the reserve is based, unless the person appearing
3 entitled thereto has within the preceding [seven (7)] five (5)
4 years, (i) assigned, readjusted or paid premiums on the policy,
5 or subjected the policy to loan, or (ii) corresponded in writing
6 with the insurer concerning the policy.
7 2. If a person other than the insured or annuitant is
8 entitled to the funds and no address of such person is known to
9 the insurer or if it is not definite and certain from the
10 records of the insurer what person is entitled to the funds, it
11 is presumed that the last known address of the person entitled
12 to the funds is the same as the last known address of the
13 insured or annuitant according to the records of the insurer.
14 3. Moneys otherwise payable according to the records of the
15 insurer are deemed due and payable although the policy or
16 contract has not been surrendered as required.
17 (b) In the case of insurance other than life insurance, the
18 following property held or owing by an insurer is presumed
19 abandoned and unclaimed:
20 1. Any moneys held or owing by an insurer as established by
21 its records under any contract of insurance other than annuity
22 or life insurance, including premiums or deposits returnable or
23 dividends payable to policy or contract holders or other persons
24 entitled thereto, unclaimed and unpaid for more than [seven (7)]
25 five (5) years after the moneys have or shall become due and
26 payable under the provisions of such contracts of insurance.
27 2. If a person other than the insured, the principal or the
28 claimant is entitled to the funds and no address of such person
29 is known to the insurer or if it is not definite and certain
30 from the records of the insurer what person is entitled to the
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1 funds, it is presumed that the last known address of the person
2 entitled to the funds is the same as the last known address of
3 the insured, the principal or the claimant according to the
4 records of the insurer.
5 Section 1301.5. Property Held by Utilities.--The following
6 funds held or owing by any utility are presumed abandoned and
7 unclaimed:
8 1. Any customer advance, toll, deposit or collateral
9 security or any other property held by any utility if under the
10 terms of an agreement the advance, toll, deposit, collateral
11 security or other property is due to or demandable by the owner
12 and has remained unclaimed for [seven (7)] five (5) years or
13 more from the date when it first became due to or demandable by
14 the owner under the agreement.
15 2. Any sum which a utility has been ordered to refund, less
16 any lawful deductions, and which has remained unclaimed by the
17 person appearing on the records of the utility entitled thereto
18 for two (2) years or more after the date it became payable in
19 accordance with the final order providing for the refund.
20 Section 1301.6. Property Held by Business Associations.--The
21 following property held or owing by a business association is
22 presumed abandoned and unclaimed:
23 1. The consideration paid for a gift certificate which has
24 remained unredeemed for two (2) years or more after its
25 redemption period has expired or for [seven (7)] five (5) years
26 or more from the date of issuance if no redemption period is
27 specified.
28 2. Any certificate of stock or participating right in a
29 business association, for which a certificate has been issued or
30 is issuable but has not been delivered, whenever the owner
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1 thereof has not claimed such property, or corresponded in
2 writing with the business association concerning it, within
3 [seven (7)] five (5) years after the date prescribed for
4 delivery of the property to the owner.
5 3. Any sum due as a dividend, profit, distribution, payment
6 or distributive share of principal held or owing by a business
7 association, whenever the owner has not claimed such sum or
8 corresponded in writing with the business association concerning
9 it within [seven (7)] five (5) years after the date prescribed
10 for payment or delivery.
11 4. Any sum due as principal or interest on the business
12 association's bonds or debentures, or coupons attached thereto,
13 whenever the owner has not claimed such sum or corresponded in
14 writing with the business association concerning it within
15 [seven (7)] five (5) years after the date prescribed for
16 payment.
17 5. Any sum or certificate or participating right due by a
18 cooperative to a participating patron, whenever the owner has
19 not claimed such property, or corresponded with the cooperative
20 concerning the same within [seven (7)] five (5) years after the
21 date prescribed for payment or delivery.
22 Section 1301.8. Property Held by Fiduciaries.--The following
23 property held by fiduciaries is presumed abandoned and
24 unclaimed:
25 All property held in a fiduciary capacity for the benefit of
26 another person, unless the owner within [seven (7)] five (5)
27 years after it has or shall become payable or distributable has
28 increased or decreased the principal, accepted payment of
29 principal or income, corresponded in writing concerning the
30 property or otherwise indicated an interest therein as evidenced
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1 by a writing on file with the fiduciary.
2 Section 3 4. Section 1301.9 of the act, amended May 16, 1986 <--
3 (P.L.197, No.60), is amended to read:
4 Section 1301.9. Property Held by Courts and Public Officers
5 and Agencies.--The following property is presumed abandoned and
6 unclaimed:
7 1. Except as provided in clause 2, all property held for the
8 owner by any court, public corporation, public authority or
9 instrumentality of the United States, the Commonwealth, or any
10 other state, or by a public officer or political subdivision
11 thereof, unclaimed by the owner for more than [seven (7)] five
12 (5) years from the date it first became demandable or
13 distributable.
14 2. Bicycles held for the owner by a municipality unclaimed
15 by the owner for more than ninety (90) days from the date it
16 first became demandable or distributable.
17 3. The bicycles held pursuant to clause 2 may be disposed of
18 by the municipality at public auction at such time and place as
19 may be designated by the municipality or the governing body may,
20 by resolution, donate the bicycles to a charitable organization.
21 Any proceeds from the sale of the bicycles shall be retained by
22 the municipality and used for municipal purposes.
23 4. Bicycles held by or acquired by the Commonwealth for
24 ninety (90) days may be disposed of at public auction at such
25 time and place as may be designated by the [Secretary of
26 Revenue] State Treasurer. Proceeds of such sale or sales shall
27 be deposited in the General Fund.
28 5. All property held by or subject to the control of any
29 court, public corporation, public authority or instrumentality
30 of the Commonwealth or by a public officer or political
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1 subdivision thereof, which is without a rightful or lawful
2 owner, to the extent not otherwise provided for by law, held for
3 more than one year.
4 Section 4 5. Section 1301.10 of the act, added December 9, <--
5 1982 (P.L.1057, No.248), is amended to read:
6 Section 1301.10. Miscellaneous Property Held for or Owing to
7 Another.--The following property, held or owing to any owner, is
8 presumed abandoned and unclaimed:
9 1. All property, not otherwise covered by this article, that
10 is admitted in writing by the holder and adjudicated to be due,
11 that is held or owing in the ordinary course of the holder's
12 business, and that has remained unclaimed by the owner for more
13 than [seven (7)] five (5) years after it became payable or
14 distributable is presumed abandoned and unclaimed[.], except for
15 clause 2.
16 2. Wages or other compensation for personal services that
17 have remained unclaimed by the owner for more than three (3)
18 years after the wages or other compensation for personal
19 services become payable or are distributed are presumed
20 abandoned and unclaimed.
21 Section 5 6. Section 1301.11 of the act, amended OR ADDED <--
22 May 16, 1986 (P.L.197, No.60), December 12, 1994 (P.L.1015,
23 No.138) and December 15, 1999 (P.L.942, No.66), is amended to
24 read:
25 Section 1301.11. Report of Property Subject to Custody and
26 Control of the Commonwealth under this Article.--(a) Every
27 person holding property which became subject to custody and
28 control of the Commonwealth under this article during the
29 preceding year shall report to the [secretary] State Treasurer
30 as hereinafter provided.
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1 (b) The report shall be verified and shall include:
2 1. Except with respect to travelers checks and money orders,
3 the name, if known, and last known address, if any, of each
4 person appearing from the records of the holder to be the owner
5 of any property of the value of [twenty-five dollars ($25)]
6 fifty dollars ($50) or more;
7 2. The nature and identifying number, if any, or description
8 of the property and the amount appearing from the records to be
9 due, except that items of value under [twenty-five dollars
10 ($25)] fifty dollars ($50) each may be reported in the
11 aggregate;
12 3. The date when the property became payable, demandable,
13 returnable or the date upon which the property was declared or
14 found to be without a rightful or lawful owner, and the date of
15 the last transaction with the owner with respect to the
16 property; and
17 4. Other information consistent with law which the
18 [secretary] State Treasurer prescribes by [rules or] regulations
19 as necessary for administration of this article.
20 (c) If the person holding property subject to custody and
21 control of the Commonwealth under this article is a successor to
22 other persons who previously held the property for the owner, or
23 if the holder has changed his name while holding the property,
24 he shall file with his report all prior known names and
25 addresses of each holder of the property.
26 (d) The report shall be filed on or before April 15 of the
27 year following the year in which the property first became
28 subject to custody and control of the Commonwealth under this
29 article. The [secretary] State Treasurer may postpone for a
30 period not exceeding six (6) months the reporting date upon
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1 written request by any person required to file a report.
2 (e) Verification, if made by a partnership, shall be
3 executed by a partner; if made by an unincorporated association
4 or private corporation, by an officer; and if made by a public
5 corporation, by its chief fiscal officer; if made by a court or
6 an officer thereof; and if made by a public officer of the
7 United States, of the Commonwealth of Pennsylvania or any
8 political subdivisions thereof, or of any other state or
9 political subdivision thereof, by that public officer.
10 (f) Subsequent to the filing of the reports required by this
11 section, the State Treasurer shall compile a list of the
12 abandoned and unclaimed property contained in the reports. The
13 listing shall contain the names, [amount of value] items of
14 property and last known addresses, if any, of the owners listed
15 in the reports. [The listing shall not be available to any
16 person for examination, inspection or copying prior to twenty-
17 four (24) months after the reports have been filed with or
18 payment or delivery of the property has been made to the State
19 Treasurer. After the twenty-four-month period provided for in
20 this section, the] The State Treasurer shall, after the
21 notification period provided for in section 1301.12, make the
22 listing available for examination, inspection or copying at fees
23 to be determined by the State Treasurer.
24 (g) All agreements or powers of attorney to recover or
25 collect abandoned and unclaimed property contained in the
26 reports filed under this article [which are made within twenty-
27 four (24) months after the date that the reports have been filed
28 with the State Treasurer shall be void.
29 (h) All such agreements entered into after the twenty-four-
30 month period] shall be valid and enforceable only if the
20020S1366B2134 - 12 -
1 agreements:
2 1. are in writing and duly signed and acknowledged by the
3 owner;
4 2. clearly state the fee or compensation to be paid, which
5 shall not exceed fifteen per centum of the value of the
6 abandoned and unclaimed property;
7 3. disclose the nature and value of the property; and
8 4. disclose the name and address of the holder and, if
9 known, whether the abandoned and unclaimed property has been
10 paid or delivered to the State Treasurer.
11 (i) Subsection (g) shall not apply to any agreement or power
12 of attorney entered into between the personal representative,
13 guardian, trustee or other person in a representative capacity
14 to the owner of the property in which such person has an
15 interest for a fixed fee or hourly or daily rate not contingent
16 upon the discovery of property or the value of property
17 discovered: Provided, however, That any such agreement under
18 this subsection for the purpose of evading the provisions of
19 subsection (g) shall be void.
20 (j) Nothing in this section shall be construed to prevent an
21 owner from asserting at any time that any agreement to locate or
22 reveal abandoned and unclaimed property reported to the State
23 Treasurer is based on an excessive or unjust consideration.
24 (k) To the maximum extent feasible, the State Treasurer
25 shall be entitled to request and receive and shall utilize and
26 be provided with such facilities, resources and data of any
27 court, department, division, board, bureau, commission or agency
28 of the Commonwealth or any political subdivision thereof as it
29 may reasonably request to carry out properly its powers and
30 duties hereunder.
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1 Section 6 7. Section 1301.12 of the act, amended May 16, <--
2 1984 1986 (P.L.197, No.60) and December 15, 1999 (P.L.942, <--
3 No.66), is amended to read:
4 Section 1301.12. Notice and Publication of Lists of Property
5 Subject to Custody and Control of the Commonwealth under this
6 Article.--(a) Within [nine (9)] twelve(12) TWELVE (12) months <--
7 from the filing of the report required by section 1301.11, the
8 [secretary] State Treasurer shall cause notice to be published
9 at least once [each week for two (2) successive weeks] in an <--
10 English language newspaper of general circulation in the county
11 in which the owner of the property had a last known address
12 appearing from the verified report filed by the holder or, if
13 there is no name or address or the owner is not a Pennsylvania
14 resident, then at least one time in the Pennsylvania Bulletin.
15 (b) The published notice shall be entitled "Notice of Names
16 of Persons Appearing to be Owners of Abandoned and Unclaimed
17 Property," and shall contain:
18 1. The names and last known addresses, if any, of persons
19 listed in the report and entitled to notice within the county as
20 hereinbefore specified and the name and address of the holder;
21 2. A statement that information concerning the amount or
22 description of the property and the name and address of the
23 holder may be obtained by any persons possessing an interest in
24 the property by addressing an inquiry to the holder;
25 3. A statement that a proof of claim should be presented by
26 the owner to the holder within three (3) months from the date of
27 the [second] published notice, and that thereafter claims should
28 be filed with the [secretary] State Treasurer.
29 (c) The [secretary] State Treasurer is not required to
30 publish in such notice any item of less than one hundred dollars
20020S1366B2134 - 14 -
1 ($100) unless [he] the State Treasurer deems such publication to
2 be in the public interest.
3 (d) Within [six (6)] nine (9) months from the receipt of the
4 report required by section 1301.11, the [secretary] State
5 Treasurer shall mail a notice to each person having an address
6 listed who appears to be entitled to property of the value of
7 one hundred dollars ($100) or more subject to custody and
8 control of the Commonwealth under this article. The mailed
9 notice shall contain:
10 1. A statement that, according to a report filed with the
11 [secretary] State Treasurer, property is being held to which the
12 addressee appears entitled;
13 2. The name and address of the holder of the property and
14 any necessary information regarding changes of name and address
15 of the holder;
16 3. A statement that, if satisfactory proof of claim is not
17 presented by the owner to the holder by the date specified in
18 the published notice, claims should thereafter be filed with the
19 [secretary] State Treasurer.
20 (D.1) EACH HOLDER OF PROPERTY UNDER THIS ARTICLE,WITHIN <--
21 SIXTY (60) DAYS OF THE EXPIRATION OF THE FIVE (5) YEAR PERIOD
22 FOLLOWING WHICH THE PROPERTY IS PRESUMED ABANDONED AND
23 UNCLAIMED, SHALL MAIL A NOTICE TO THE OWNER OF THE PROPERTY OR,
24 IF KNOWN BY THE HOLDER, ANY OTHER PERSON ENTITLED TO THE
25 PROPERTY, AT THE LAST KNOWN ADDRESS OF THE OWNER OR OTHER
26 PERSON, AS SHOWN BY THE RECORDS OF THE HOLDER. THE NOTICE SHALL
27 CONTAIN THE INFORMATION REQUIRED UNDER SUBSECTION (D).
28 (e) This section is not applicable to sums payable on
29 travelers checks and money orders or to property reported to be
30 without a rightful or lawful owner.
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1 Section 7 8. Section 1301.13 of the act, amended May 16, <--
2 1984 1986 (P.L.197, No.60), is amended to read: <--
3 Section 1301.13. Payment or Delivery.--(a) Every person who
4 holds property subject to the custody and control of the
5 Commonwealth shall, [within sixty (60) days after receipt of
6 written demand from the secretary and] after compliance with
7 section [1301.12] 1301.11, where required, and on or before
8 April 15 of the year following the year in which the property
9 first became subject to custody and control of the Commonwealth
10 under this article, pay or deliver to the [secretary] State
11 Treasurer all property subject to custody and control of the
12 Commonwealth under this article, except that, if the owner
13 establishes his right to receive the property to the
14 satisfaction of the holder, or if it appears that for some other
15 reason the property is not then subject to custody and control
16 of the Commonwealth under this article, the holder need not pay
17 or deliver the property to the [secretary] State Treasurer, but
18 in lieu thereof shall file a verified written explanation of the
19 proof of claim or as to the reason the property is not subject
20 to custody and control of the Commonwealth.
21 (b) A receipt shall be issued, on behalf of the
22 Commonwealth, for all property received under this article.
23 (c) Notwithstanding subsection (a) of this section, in the
24 case of the deposits and the sums payable under clauses 1 and 3
25 of section 1301.3 the amount of such deposits and such sums
26 shall be paid to the [secretary] State Treasurer on or before
27 the final date for filing the report required by section
28 1301.11.
29 (d) Any person who holds property which may become subject
30 to the custody and control of the Commonwealth pursuant to this
20020S1366B2134 - 16 -
1 act may, with the consent of the [secretary] State Treasurer,
2 report and deliver such property prior to the expiration of any
3 holding period specified for such reporting. Any person who pays
4 or delivers property prior to the expiration of such holding
5 period shall be relieved of further liability pursuant to
6 section 1301.14. Property thus reported may be disposed of
7 pursuant to [sections 1301.12 and] section 1301.17, but in no
8 event shall the period for filing of claims be diminished by
9 such early delivery or disposition.
10 Section 8 9. Sections 1301.14, 1301.15 and 1301.16 of the <--
11 act, added December 9, 1982 (P.L.1057, No.248), are amended to
12 read:
13 Section 1301.14. Relief from Liability by Payment or
14 Delivery.--Upon the payment or delivery of the property to the
15 [secretary] State Treasurer, the Commonwealth shall assume
16 custody and shall be responsible for the safekeeping thereof.
17 Any person who pays or delivers property to the [secretary]
18 State Treasurer under this article is relieved of all liability
19 with respect to the safekeeping of such property so paid or
20 delivered for any claim which then exists or which thereafter
21 may arise or be made in respect to such property. Any holder who
22 has paid moneys to the [secretary] State Treasurer pursuant to
23 this article may make payment to any person appearing to such
24 holder to be entitled thereto. In the case of deposits and sums
25 paid to the [secretary] State Treasurer under subsection (c) of
26 section 1301.13, financial institutions shall make payment to
27 any person appearing to such financial institution to be
28 entitled thereto. Upon proof of such payment by a holder and
29 proof that the payee was entitled thereto, the [secretary] State
30 Treasurer shall forthwith reimburse the holder for such payment
20020S1366B2134 - 17 -
1 together with interest from the date of receipt of such proofs
2 by the [secretary] State Treasurer to a date within thirty (30)
3 days of the date of mailing of the reimbursement. Interest under
4 this section shall be at the rate prevailing for tax over
5 payments on the date of receipt of the proofs by the [secretary]
6 State Treasurer as provided for in section 806 of this act.
7 Section 1301.15. Income Accruing After Payment or
8 Delivery.--When property is paid or delivered to the [secretary]
9 State Treasurer under this article, the owner is entitled to
10 receive income or other increments actually received by the
11 [secretary] State Treasurer.
12 Section 1301.16. Periods of Limitation.--Except as
13 hereinbelow set forth, the expiration of any period of time
14 specified by statute or court order, during which an action may
15 be commenced or maintained, or could have been commenced or
16 maintained, by the owner against the holder of the property,
17 shall not prevent such property from being subject to the
18 custody and control of the Commonwealth under this article, nor
19 affect the duty to file a report or to pay or deliver the
20 property to the [secretary] State Treasurer, as required by this
21 article, nor bar any action by the [secretary] State Treasurer
22 under this article, provided that:
23 1. If any holder required to file a report under any act in
24 effect prior to the effective date of this article, or under
25 this article, has filed or files a report, no action shall be
26 commenced or maintained against such holder unless it has been
27 or is commenced within fifteen (15) years after such report has
28 been or is filed.
29 2. If any holder was not required to file a report under any
30 act in effect prior to the effective date hereof, no action
20020S1366B2134 - 18 -
1 shall be commenced or maintained unless it has been or is
2 commenced within fifteen (15) years after the property first
3 became escheatable or payable into the State Treasury without
4 escheat.
5 Section 9 10. Section 1301.17 of the act, amended May 16, <--
6 1986 (P.L.197, No.60), is amended to read:
7 Section 1301.17. Disposition of Property.--(a) Within a
8 reasonable time after delivery to [him] the State Treasurer of
9 any property under this article, the [secretary] State Treasurer
10 may sell it to the highest bidder at public sale in whatever
11 city in the Commonwealth affords, in [his] the State Treasurer's
12 judgment, the most favorable market for the property involved.
13 The [secretary] State Treasurer may decline the highest bid or
14 reoffer the property for sale if [he] the State Treasurer
15 considers the price bid insufficient. [He] The State Treasurer
16 need not offer any property for sale, if, in [his] the State
17 Treasurer's opinion, the probable cost of sale exceeds the value
18 of the property.
19 (b) If the property is of a type customarily sold on a
20 recognized market or of a type which is subjected to widely
21 distributed standard price quotations, the [secretary] State
22 Treasurer may sell the property without notice by publication or
23 otherwise. The language provided in this section grants to the
24 State Treasurer, express authority to sell any property
25 including, but not limited to, stocks, bonds, notes, bills and
26 all other public or private securities.
27 (c) Property reported or delivered to the custody or control
28 of the [secretary] State Treasurer pursuant to this act may be
29 donated to the use of the Commonwealth or any of its political
30 subdivisions or otherwise consumed or discarded, at the
20020S1366B2134 - 19 -
1 discretion of the [secretary] State Treasurer where, in the
2 opinion of the [secretary] State Treasurer, the costs associated
3 with delivery, notice or sale exceed the value of the property.
4 Property which is refused or is to be donated to the use of a
5 political subdivision shall first be offered to the political
6 subdivision which holds the property. A donee or purchaser at
7 any sale conducted by the [secretary] State Treasurer pursuant
8 to this article shall receive title to the property purchased,
9 free from all claims of the owner or prior holder thereof and of
10 all persons claiming through or under them. The [secretary]
11 State Treasurer shall execute all documents necessary to
12 complete the transfer of title.
13 (d) The State Treasurer shall be responsible to an owner
14 only for the amount actually received by the State Treasurer
15 upon the sale of any property pursuant to subsections (a), (b)
16 and (c).
17 (e) The State Treasurer shall be required to sell all
18 stocks, bonds and other negotiable financial instruments upon
19 receipt of such items. The State Treasurer shall not be held
20 liable for any loss or gain in the value that the financial
21 instrument would have obtained had the financial instrument been
22 held instead of being sold.
23 Section 10 11. Sections 1301.18, 1301.19, 1301.20 and <--
24 1301.21, added December 9, 1982 (P.L.1057, No.248), are amended
25 to read:
26 Section 1301.18. Deposit of Funds.--(a) All funds received
27 under this article, including the proceeds from the sale of
28 property under section 1301.17, shall forthwith be deposited by
29 the [secretary] State Treasurer in the General Fund of the
30 Commonwealth, except that the [secretary] State Treasurer shall
20020S1366B2134 - 20 -
1 retain in a separate trust fund an amount not exceeding twenty-
2 five thousand dollars ($25,000) plus twenty per centum of
3 deposits and sums paid to the [secretary] State Treasurer under
4 subsection (c) of section 1301.13 during the preceding twelve
5 (12) months from which [he] the State Treasurer shall make
6 reimbursements under section 1301.14 and prompt payment of
7 claims duly allowed under section 1301.19. Before making the
8 deposit [he] the State Treasurer shall record the name and last
9 known address of each person appearing from the holders' reports
10 to be entitled to the property and of the name and last known
11 address of each insured person or annuitant, and with respect to
12 each policy or contract listed in the report of an insurer, its
13 number, the name of the insurer and the amount due. The record
14 with respect to any specific claim shall be available to the
15 claimant at all regular business hours.
16 (b) [Before making any deposit to the credit of the General
17 Fund, the secretary may deduct:
18 (i) Reasonable costs in connection with sale of the
19 property,
20 (ii) Reasonable costs of mailing and publication in
21 connection with any property, and
22 (iii) Reasonable service charges.] The General Assembly
23 shall annually appropriate to the State Treasurer such funds as
24 it deems necessary and appropriate to administer this article.
25 Section 1301.19. Claim for Property Paid or Delivered.--Any
26 person claiming an interest in any property paid or delivered to
27 the Commonwealth under this article may file a claim thereto or
28 to the proceeds from the sale thereof on the form prescribed by
29 the [secretary] State Treasurer.
30 Section 1301.20. Determination of Claims.--(a) The
20020S1366B2134 - 21 -
1 [secretary] State Treasurer shall consider any claim filed under
2 this article and may hold a hearing and receive evidence
3 concerning it. If a hearing is held, [he] the State Treasurer
4 shall prepare a finding and a decision in writing on each claim
5 filed, stating the substance of any evidence heard by [him] the
6 State Treasurer and the reasons for [his] the State Treasurer's
7 decision. The decision shall be a public record.
8 (b) If the claim is allowed, the [secretary] State Treasurer
9 shall make payment forthwith.
10 Section 1301.21. Judicial Action upon Determinations.--Any
11 person aggrieved by a decision of the [secretary] State
12 Treasurer, or as to whose claim the [secretary] State Treasurer
13 has failed to act within ninety (90) days after the filing of
14 the claim, may commence an action in the Commonwealth Court to
15 establish his claim. The proceeding shall be brought within
16 thirty (30) days after the decision of the [secretary] State
17 Treasurer or within one hundred twenty (120) days from the
18 filing of the claim if the [secretary] State Treasurer fails to
19 act. The action shall be tried de novo without a jury.
20 Section 11 12. Section 1301.22 of the act, amended May 16, <--
21 1986 (P.L.197, No.60), is amended to read:
22 Section 1301.22. Election to Take Payment or Delivery.--The
23 [secretary] State Treasurer may decline to receive any item of
24 property reported, in which event the holder thereof shall be
25 discharged of any liability to the Commonwealth with respect
26 thereto. Unless the holder of the property is notified to the
27 contrary within [one hundred twenty (120)] ninety (90) days
28 after filing the report required under section 1301.11, the
29 [secretary] State Treasurer shall be deemed to have elected to
30 receive the custody of the property.
20020S1366B2134 - 22 -
1 Section 12 13. Sections 1301.23, 1301.24, 1301.25, 1301.26 <--
2 and 1301.28 of the act, added December 9, 1982 (P.L.1057,
3 No.248), are amended to read:
4 Section 1301.23. Examination of Records.--(a) If the
5 [secretary] State Treasurer has reason to believe that any
6 holder has failed to report property that should have been
7 reported pursuant to this article, the [secretary] State
8 Treasurer may, at reasonable times and upon reasonable notice,
9 examine the records of such person with respect to such
10 property.
11 (b) If a holder fails after the effective date of this
12 subsection to maintain the records required or the records of
13 the holder available for the periods subject to this act are
14 insufficient to permit the preparation of a report, the State
15 Treasurer may require the holder to report and pay the amount
16 the State treasurer may reasonably estimate on the basis of any
17 available records of the holder or on the basis of any other
18 reasonable method of estimation that the State Treasurer may
19 select.
20 Section 1301.24. Proceeding to Compel Reporting or
21 Delivery.--(a) If any person refuses to report, or to pay or
22 deliver property to the [secretary] State Treasurer as required
23 under this article, including property subject to written
24 demands pursuant to section 1301.3 and the amount required to be
25 paid pursuant to section 1301.23(b), the Commonwealth shall
26 bring an action in a court of appropriate jurisdiction to
27 enforce reporting or delivery. In any such action the
28 Pennsylvania Rules of Civil Procedure shall apply, including
29 without limitation those pertaining to discovery. The State
30 Treasurer bears the burden of proof regarding the estimation of
20020S1366B2134 - 23 -
1 the value of property pursuant to this article.
2 (b) If any holder fails, without proper cause, (i) to report
3 or (ii) to pay and deliver to the [secretary] State Treasurer
4 property subject to custody and control of the Commonwealth
5 under this article, such holder shall be liable to pay to the
6 [secretary] State Treasurer interest at the rate of twelve per
7 centum per annum from the time such report should have been
8 filed, to be computed on the value of such property as
9 established in an action by the [secretary] State Treasurer
10 under subsection (a), and such interest shall be recoverable in
11 the same action.
12 Section 1301.25. Penalties.--(a) Any person who, without
13 proper cause, fails to render any report or perform other duties
14 required under this article, shall, upon conviction in a summary
15 proceeding be sentenced to pay a fine of [ten dollars ($10)] one
16 hundred dollars ($100) for each day such report is withheld, but
17 not more than [one thousand dollars ($1,000)] ten thousand
18 dollars ($10,000).
19 (b) Any person who, without proper cause, refuses to pay or
20 deliver property to the [secretary] State Treasurer as required
21 under this article shall be guilty of a misdemeanor and, upon
22 conviction thereof, shall be sentenced to pay a fine of not less
23 than [one hundred dollars ($100)] one thousand dollars ($1,000)
24 nor more than [one thousand dollars ($1,000)] ten thousand
25 dollars ($10,000), or imprisonment for not more than [twelve
26 (12)] twenty-four (24) months, or both.
27 (c) Upon good cause shown, the State Treasurer may waive, in
28 whole or in part, interest and penalties under subsections (a)
29 and (b), and shall waive penalties if the holder acted in good
30 faith and without negligence.
20020S1366B2134 - 24 -
1 Section 1301.26. [Rules and] Regulations.--(a) The
2 [secretary] State Treasurer is hereby authorized to make
3 necessary [rules and] regulations to carry out the provisions of
4 this article.
5 (b) Within 12 TWELVE (12) months of the effective date of <--
6 this subsection, the State Treasurer shall promulgate
7 regulations regarding estimation calculations. Pending the
8 promulgation of the regulations and prior to issuing any demand
9 pursuant to section 1301.24 that incorporates any estimate of
10 amounts due following the State Treasurer's examination of a
11 holder's records, the State Treasurer shall promulgate a
12 statement of policy regarding estimation calculations.
13 Estimation procedures set forth by the statement of policy shall
14 conform to generally accepted auditing standards. The statement
15 of policy shall expire upon promulgation of final regulations or
16 one year from the effective date of this subsection, whichever
17 occurs first.
18 [Section 1301.28. Exclusions.--The provisions of this
19 article shall not apply to nonprofit hospitalization
20 corporations or nonprofit medical service corporations.]
21 Section 13 14. The act is amended by adding a section to <--
22 read:
23 Section 1301.28a. Interdepartmental Cooperation.--The
24 Department of Revenue, the Department of Transportation and the
25 head of any other department, board, commission, agency or
26 instrumentality of the Commonwealth shall, unless otherwise
27 prohibited by law, disclose to the Treasury Department any
28 information which may be of assistance in locating individuals
29 listed in the Treasury Department's records as owners of
30 unclaimed property. The information shall include, but is not
20020S1366B2134 - 25 -
1 limited to, last known addresses. Upon receipt, the Treasury
2 Department shall keep this information confidential and shall
3 use it solely to assist in the process of returning unclaimed
4 property to its rightful owner.
5 Section 14. Section 1301.29 of the act, added December 9, <--
6 1982 (P.L.1057, No. 248), is amended to read:
7 Section 1301.29. Repeal.--The act of August 9, 1971
8 (P.L.286, No.74), known as the "Disposition of Abandoned and
9 Unclaimed Property Act," is repealed.
10 SECTION 15. THE ACT IS AMENDED BY ADDING SECTIONS TO READ: <--
11 SECTION 1508. NOTICE OF REAL PROPERTY PURCHASE.--WHENEVER AN
12 AGENCY OF STATE GOVERNMENT INTENDS TO ENTER INTO A CONTRACT TO
13 PURCHASE REAL PROPERTY VALUED AT MORE THAN ONE HUNDRED THOUSAND
14 DOLLARS ($100,000), THE AGENCY SHALL FIRST PUBLISH A DESCRIPTION
15 OF THE PROJECT AND PROPOSED CRITERIA FOR THE SELECTION OF REAL
16 ESTATE IN THE PENNSYLVANIA BULLETIN AT LEAST THIRTY DAYS BEFORE
17 ANY CONTRACT IS SIGNED OR A SPECIFIC PROPERTY IS SELECTED.
18 SECTION 1603. RIGHT TO EXAMINE AND REVIEW INSPECTOR GENERAL
19 REPORTS.--(A) UPON REQUEST, THE ATTORNEY GENERAL, AUDITOR
20 GENERAL AND STATE TREASURER SHALL HAVE THE RIGHT TO EXAMINE AND
21 REVIEW ALL REPORTS PREPARED BY THE INSPECTOR GENERAL ON STATE
22 PROGRAMS OR CONTRACTS WHEN THE ATTORNEY GENERAL CONDUCTS A
23 CRIMINAL INVESTIGATION ON RELEVANT PROGRAMS OR CONTRACTS OR WHEN
24 THE AUDITOR GENERAL OR STATE TREASURER EXERCISES OFFICIAL DUTIES
25 UNDER THIS ACT.
26 (B) THE INSPECTOR GENERAL MAY TEMPORARILY DELAY THE
27 RELEASING OF A REPORT UP TO THIRTY (30) DAYS FROM THE DATE OF
28 THE REQUEST OF THE ATTORNEY GENERAL, AUDITOR GENERAL OR STATE
29 TREASURER UNDER SUBSECTION (A) FOR THE PURPOSE OF DELETING THE
30 NAMES OF CONFIDENTIAL INFORMANTS OR PROTECTING AN ONGOING
20020S1366B2134 - 26 -
1 CRIMINAL INVESTIGATION OR PROSECUTION CONDUCTED BY FEDERAL,
2 STATE OR LOCAL GOVERNMENT AGENCIES.
3 SECTION 16. ARTICLE IV OF THE ACT OF MARCH 4, 1971 (P.L.6, <--
4 NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, IS REPEALED TO THE
5 EXTENT THAT IT IS INCONSISTENT WITH SECTION 202(P) OF THE ACT.
6 Section 15 17. The amendment of section 1301.25(a) and (b) <--
7 shall not apply to any holder of abandoned or unclaimed property
8 or to any abandoned or unclaimed property reportable and payable
9 to the State Treasurer prior to December 31, 2003, that has a
10 dormancy period of five years. This section shall expire
11 December 31, 2003.
12 Section 16 18. This act shall take effect July 1, 2002. <--
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