PRIOR PRINTER'S NOS. 1826, 1840, 2025 PRINTER'S NO. 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, JUNE 12, 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 regulating abandoned property.
31 The General Assembly of the Commonwealth of Pennsylvania
1 hereby enacts as follows:
2 Section 1. The definitions of "holder" and "secretary" in
3 section 1301.1 of the act of April 9, 1929 (P.L.343, No.176),
4 known as The Fiscal Code, added December 9, 1982 (P.L.1057,
5 No.248), are amended to read:
6 Section 1301.1. Definitions.--As used in this article,
7 unless the context otherwise requires:
8 * * *
9 "Holder" shall include any person in possession of property
10 subject to this article belonging to another, or who is a
11 trustee in case of a trust, or is indebted to another on an
12 obligation subject to this article or any financial institution
13 which has paid amounts and sums to the [secretary] State
14 Treasurer under subsection (c) of section 1301.13 of this
15 article.
16 * * *
17 ["Secretary" shall mean the Secretary of Revenue of the
18 Commonwealth of Pennsylvania.]
19 * * *
20 Section 2. Sections 1301.3, 1301.4, 1301.5, 1301.6 and
21 1301.8 of the act, added December 9, 1982 (P.L.1057, No.248),
22 are amended to read:
23 Section 1301.3. Property Held by Financial Institutions.--
24 The following property held or owing by a financial institution
25 is presumed abandoned and unclaimed:
26 1. Any demand, saving or matured time deposit in a financial
27 institution, or any funds paid toward the purchase of shares or
28 other interest in a savings association, savings and loan or
29 building and loan association, excluding any charges that may
30 lawfully be withheld, unless within the preceding [seven (7)]
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1 five (5) years the owner has:
2 (i) Increased the amount of the deposit, shares or claim,
3 otherwise than by the crediting of accrued interest, or
4 decreased it, or presented to the holder evidence of the
5 deposit, shares or claim; or
6 (ii) Corresponded in writing with the holder concerning the
7 deposit, shares or claim; or
8 (iii) Otherwise indicated an interest in the deposit, shares
9 or claim as evidenced by a writing on file with the holder; or
10 (iv) Received tax reports or regular statements of the
11 deposits, shares or claim by certified mail or other method of
12 communication that will provide the financial institution with a
13 record that such report or statement was transmitted and
14 received; or
15 (v) Owned other property held by the financial institution
16 to which subclause (i), (ii), (iii) or (iv) applies.
17 2. A deposit under clause 1 shall include any interest or
18 dividend which the financial institution would pay to the owner
19 upon claim therefor. The charges which may be excluded hereunder
20 shall not include any charge due to inactivity imposed, directly
21 or indirectly, after December 31, 1981 unless there is a valid
22 and enforceable written contract between the financial
23 institution and the owner of the deposit pursuant to which the
24 financial institution may impose said charge.
25 3. Any sum payable on checks or on written instruments
26 including, but not limited to, drafts, money orders and
27 travelers checks, on which a financial institution is directly
28 liable, and (i) which have been outstanding for more than [seven
29 (7)] five (5) years[, or in the case of travelers checks, <--
30 fifteen (15) years,] from the date payable[,] or from the date <--
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1 of issuance if payable on demand; and (ii) the owner of which
2 has not written to the financial institution concerning it, nor
3 otherwise indicated an interest as evidenced by a writing on
4 file with the financial institution.
5 4. Any funds or other personal property, tangible or
6 intangible, removed from a safe deposit box or any other
7 safekeeping repository in the Commonwealth on which the lease or
8 rental period has expired due to nonpayment of rental charges or
9 other reason, or any surplus amounts arising from the sale
10 thereof pursuant to law, if the same has not been claimed by the
11 owner for more than [seven (7)] five (5) years from the date on
12 which the rental period expired.
13 5. The following deposits described in clause 1 shall be
14 excluded from the presumption of being abandoned and unclaimed
15 only while the conditions described below are in effect:
16 (i) Deposits during any period when withdrawals may be made
17 only upon an order of a court of competent jurisdiction.
18 (ii) Deposits established under 20 Pa.C.S. Ch. 53 (relating
19 to Pennsylvania Uniform Transfers to Minors Act) or similar law
20 concerning transfers to minors, while the custodianship has not
21 been terminated.
22 (iii) Burial reserve accounts and similar deposits
23 established under written agreements to provide for the funeral
24 and/or burial expenses of a person while the person is still
25 alive.
26 Section 1301.4. Property Held by Insurers.--(a) In the case
27 of life insurance, the following property held or owing by an
28 insurer is presumed abandoned and unclaimed:
29 1. Any moneys held or owing by an insurer as established by
30 its records under any contract of annuity or policy of life
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1 insurance including premiums returnable or dividends payable,
2 unclaimed and unpaid for more than [seven (7)] five (5) years
3 after the moneys have or shall become due and payable under the
4 provisions of such contract of annuity or policy of insurance. A
5 life insurance policy not matured by actual proof of the death
6 of the insured is deemed to be matured and the proceeds thereof
7 are deemed to be due and payable if such policy was in force
8 when the insured attained the limiting age under the mortality
9 table on which the reserve is based, unless the person appearing
10 entitled thereto has within the preceding [seven (7)] five (5)
11 years, (i) assigned, readjusted or paid premiums on the policy,
12 or subjected the policy to loan, or (ii) corresponded in writing
13 with the insurer concerning the policy.
14 2. If a person other than the insured or annuitant is
15 entitled to the funds and no address of such person is known to
16 the insurer or if it is not definite and certain from the
17 records of the insurer what person is entitled to the funds, it
18 is presumed that the last known address of the person entitled
19 to the funds is the same as the last known address of the
20 insured or annuitant according to the records of the insurer.
21 3. Moneys otherwise payable according to the records of the
22 insurer are deemed due and payable although the policy or
23 contract has not been surrendered as required.
24 (b) In the case of insurance other than life insurance, the
25 following property held or owing by an insurer is presumed
26 abandoned and unclaimed:
27 1. Any moneys held or owing by an insurer as established by
28 its records under any contract of insurance other than annuity
29 or life insurance, including premiums or deposits returnable or
30 dividends payable to policy or contract holders or other persons
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1 entitled thereto, unclaimed and unpaid for more than [seven (7)]
2 five (5) years after the moneys have or shall become due and
3 payable under the provisions of such contracts of insurance.
4 2. If a person other than the insured, the principal or the
5 claimant is entitled to the funds and no address of such person
6 is known to the insurer or if it is not definite and certain
7 from the records of the insurer what person is entitled to the
8 funds, it is presumed that the last known address of the person
9 entitled to the funds is the same as the last known address of
10 the insured, the principal or the claimant according to the
11 records of the insurer.
12 Section 1301.5. Property Held by Utilities.--The following
13 funds held or owing by any utility are presumed abandoned and
14 unclaimed:
15 1. Any customer advance, toll, deposit or collateral
16 security or any other property held by any utility if under the
17 terms of an agreement the advance, toll, deposit, collateral
18 security or other property is due to or demandable by the owner
19 and has remained unclaimed for [seven (7)] five (5) years or
20 more from the date when it first became due to or demandable by
21 the owner under the agreement.
22 2. Any sum which a utility has been ordered to refund, less
23 any lawful deductions, and which has remained unclaimed by the
24 person appearing on the records of the utility entitled thereto
25 for two (2) years or more after the date it became payable in
26 accordance with the final order providing for the refund.
27 Section 1301.6. Property Held by Business Associations.--The
28 following property held or owing by a business association is
29 presumed abandoned and unclaimed:
30 1. The consideration paid for a gift certificate which has
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1 remained unredeemed for two (2) years or more after its
2 redemption period has expired or for [seven (7)] five (5) years
3 or more from the date of issuance if no redemption period is
4 specified.
5 2. Any certificate of stock or participating right in a
6 business association, for which a certificate has been issued or
7 is issuable but has not been delivered, whenever the owner
8 thereof has not claimed such property, or corresponded in
9 writing with the business association concerning it, within
10 [seven (7)] five (5) years after the date prescribed for
11 delivery of the property to the owner.
12 3. Any sum due as a dividend, profit, distribution, payment
13 or distributive share of principal held or owing by a business
14 association, whenever the owner has not claimed such sum or
15 corresponded in writing with the business association concerning
16 it within [seven (7)] five (5) years after the date prescribed
17 for payment or delivery.
18 4. Any sum due as principal or interest on the business
19 association's bonds or debentures, or coupons attached thereto,
20 whenever the owner has not claimed such sum or corresponded in
21 writing with the business association concerning it within
22 [seven (7)] five (5) years after the date prescribed for
23 payment.
24 5. Any sum or certificate or participating right due by a
25 cooperative to a participating patron, whenever the owner has
26 not claimed such property, or corresponded with the cooperative
27 concerning the same within [seven (7)] five (5) years after the
28 date prescribed for payment or delivery.
29 Section 1301.8. Property Held by Fiduciaries.--The following
30 property held by fiduciaries is presumed abandoned and
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1 unclaimed:
2 All property held in a fiduciary capacity for the benefit of
3 another person, unless the owner within [seven (7)] five (5)
4 years after it has or shall become payable or distributable has
5 increased or decreased the principal, accepted payment of
6 principal or income, corresponded in writing concerning the
7 property or otherwise indicated an interest therein as evidenced
8 by a writing on file with the fiduciary.
9 Section 3. Section 1301.9 of the act, amended May 16, 1986
10 (P.L.197, No.60), is amended to read:
11 Section 1301.9. Property Held by Courts and Public Officers
12 and Agencies.--The following property is presumed abandoned and
13 unclaimed:
14 1. Except as provided in clause 2, all property held for the
15 owner by any court, public corporation, public authority or
16 instrumentality of the United States, the Commonwealth, or any
17 other state, or by a public officer or political subdivision
18 thereof, unclaimed by the owner for more than [seven (7)] five
19 (5) years from the date it first became demandable or
20 distributable.
21 2. Bicycles held for the owner by a municipality unclaimed
22 by the owner for more than ninety (90) days from the date it
23 first became demandable or distributable.
24 3. The bicycles held pursuant to clause 2 may be disposed of
25 by the municipality at public auction at such time and place as
26 may be designated by the municipality or the governing body may,
27 by resolution, donate the bicycles to a charitable organization.
28 Any proceeds from the sale of the bicycles shall be retained by
29 the municipality and used for municipal purposes.
30 4. Bicycles held by or acquired by the Commonwealth for
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1 ninety (90) days may be disposed of at public auction at such
2 time and place as may be designated by the [Secretary of
3 Revenue] State Treasurer. Proceeds of such sale or sales shall
4 be deposited in the General Fund.
5 5. All property held by or subject to the control of any
6 court, public corporation, public authority or instrumentality
7 of the Commonwealth or by a public officer or political
8 subdivision thereof, which is without a rightful or lawful
9 owner, to the extent not otherwise provided for by law, held for
10 more than one year.
11 Section 4. Section 1301.10 of the act, added December 9,
12 1982 (P.L.1057, No.248), is amended to read:
13 Section 1301.10. Miscellaneous Property Held for or Owing to
14 Another.--The following property, held or owing to any owner, is
15 presumed abandoned and unclaimed:
16 1. All property, not otherwise covered by this article, that
17 is admitted in writing by the holder and adjudicated to be due,
18 that is held or owing in the ordinary course of the holder's
19 business, and that has remained unclaimed by the owner for more
20 than [seven (7)] five (5) years after it became payable or
21 distributable is presumed abandoned and unclaimed[.], except for
22 clause 2.
23 2. Wages or other compensation for personal services that
24 have remained unclaimed by the owner for more than three (3)
25 years after the wages or other compensation for personal
26 services becomes BECOME payable or are distributed are presumed <--
27 abandoned and unclaimed.
28 Section 5. Section 1301.11 of the act, amended May 16, 1986
29 (P.L.197, No.60), December 12, 1994 (P.L.1015, No.138) and
30 December 15, 1999 (P.L.942, No.66), is amended to read:
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1 Section 1301.11. Report of Property Subject to Custody and
2 Control of the Commonwealth under this Article.--(a) Every
3 person holding property which became subject to custody and
4 control of the Commonwealth under this article during the
5 preceding year shall report to the [secretary] State Treasurer
6 as hereinafter provided.
7 (b) The report shall be verified and shall include:
8 1. Except with respect to travelers checks and money orders,
9 the name, if known, and last known address, if any, of each
10 person appearing from the records of the holder to be the owner
11 of any property of the value of [twenty-five dollars ($25)]
12 fifty dollars ($50) or more;
13 2. The nature and identifying number, if any, or description
14 of the property and the amount appearing from the records to be
15 due, except that items of value under [twenty-five dollars
16 ($25)] fifty dollars ($50) each may be reported in the
17 aggregate;
18 3. The date when the property became payable, demandable,
19 returnable or the date upon which the property was declared or
20 found to be without a rightful or lawful owner, and the date of
21 the last transaction with the owner with respect to the
22 property; and
23 4. Other information CONSISTENT WITH LAW which the <--
24 [secretary] State Treasurer prescribes by [rules or] regulations <--
25 as necessary for administration of this article.
26 (c) If the person holding property subject to custody and
27 control of the Commonwealth under this article is a successor to
28 other persons who previously held the property for the owner, or
29 if the holder has changed his name while holding the property,
30 he shall file with his report all prior known names and
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1 addresses of each holder of the property.
2 (d) The report shall be filed on or before April 15 of the
3 year following the year in which the property first became
4 subject to custody and control of the Commonwealth under this
5 article. The [secretary] State Treasurer may postpone for a
6 period not exceeding six (6) months the reporting date upon
7 written request by any person required to file a report.
8 (e) Verification, if made by a partnership, shall be
9 executed by a partner; if made by an unincorporated association
10 or private corporation, by an officer; and if made by a public
11 corporation, by its chief fiscal officer; if made by a court, by <--
12 a justice, judge or district justice OR AN OFFICER thereof; and <--
13 if made by a public officer of the United States, of the
14 Commonwealth of Pennsylvania or any political subdivisions
15 thereof, or of any other state or political subdivision thereof,
16 by that public officer.
17 (f) Subsequent to the filing of the reports required by this
18 section, the State Treasurer shall compile a list of the
19 abandoned and unclaimed property contained in the reports. The
20 listing shall contain the names, [amount of value] items of
21 property and last known addresses, if any, of the owners listed
22 in the reports. [The listing shall not be available to any
23 person for examination, inspection or copying prior to twenty-
24 four (24) months after the reports have been filed with or
25 payment or delivery of the property has been made to the State
26 Treasurer. After the twenty-four-month period provided for in
27 this section, the] The State Treasurer shall, after the
28 notification period provided for in section 1301.12, make the
29 listing available for examination, inspection or copying at fees
30 to be determined by the State Treasurer.
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1 (g) All agreements or powers of attorney to recover or
2 collect abandoned and unclaimed property contained in the
3 reports filed under this article [which are made within twenty-
4 four (24) months after the date that the reports have been filed
5 with the State Treasurer shall be void.
6 (h) All such agreements entered into after the twenty-four-
7 month period] shall be valid and enforceable only if the
8 agreements:
9 1. are in writing and duly signed and acknowledged by the
10 owner;
11 2. clearly state the fee or compensation to be paid, which
12 shall not exceed fifteen per centum of the value of the
13 abandoned and unclaimed property;
14 3. disclose the nature and value of the property; and
15 4. disclose the name and address of the holder and, if
16 known, whether the abandoned and unclaimed property has been
17 paid or delivered to the State Treasurer.
18 (i) Subsection (g) shall not apply to any agreement or power
19 of attorney entered into between the personal representative,
20 guardian, trustee or other person in a representative capacity
21 to the owner of the property in which such person has an
22 interest for a fixed fee or hourly or daily rate not contingent
23 upon the discovery of property or the value of property
24 discovered: Provided, however, That any such agreement under
25 this subsection for the purpose of evading the provisions of
26 subsection (g) shall be void.
27 (j) Nothing in this section shall be construed to prevent an
28 owner from asserting at any time that any agreement to locate or
29 reveal abandoned and unclaimed property reported to the State
30 Treasurer is based on an excessive or unjust consideration.
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1 (k) To the maximum extent feasible, the State Treasurer
2 shall be entitled to request and receive and shall utilize and
3 be provided with such facilities, resources and data of any
4 court, department, division, board, bureau, commission or agency
5 of the Commonwealth or any political subdivision thereof as it
6 may reasonably request to carry out properly its powers and
7 duties hereunder.
8 Section 6. Section 1301.12 of the act, amended May 16, 1984
9 (P.L.197, No.60) and December 15, 1999 (P.L.942, No.66), is
10 amended to read:
11 Section 1301.12. Notice and Publication of Lists of Property
12 Subject to Custody and Control of the Commonwealth under this
13 Article.--(a) Within [nine (9)] twelve(12) months from the
14 filing of the report required by section 1301.11, the
15 [secretary] State Treasurer shall cause notice to be published
16 at least once [each week for two (2) successive weeks] in an
17 English language newspaper of general circulation in the county
18 in which the owner of the property had a last known address
19 appearing from the verified report filed by the holder or, if
20 there is no name or address or the owner is not a Pennsylvania
21 resident, then at least one time in the Pennsylvania Bulletin.
22 (b) The published notice shall be entitled "Notice of Names
23 of Persons Appearing to be Owners of Abandoned and Unclaimed
24 Property," and shall contain:
25 1. The names and last known addresses, if any, of persons
26 listed in the report and entitled to notice within the county as
27 hereinbefore specified and the name and address of the holder;
28 2. A statement that information concerning the amount or
29 description of the property and the name and address of the
30 holder may be obtained by any persons possessing an interest in
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1 the property by addressing an inquiry to the holder;
2 3. A statement that a proof of claim should be presented by
3 the owner to the holder within three (3) months from the date of
4 the [second] published notice, and that thereafter claims should
5 be filed with the [secretary] State Treasurer.
6 (c) The [secretary] State Treasurer is not required to
7 publish in such notice any item of less than one hundred dollars
8 ($100) unless [he] THE State Treasurer deems such publication to <--
9 be in the public interest.
10 (d) Within [six (6)] nine (9) months from the receipt of the
11 report required by section 1301.11, the [secretary] State
12 Treasurer shall mail a notice to each person having an address
13 listed who appears to be entitled to property of the value of
14 one hundred dollars ($100) or more subject to custody and
15 control of the Commonwealth under this article. The mailed
16 notice shall contain:
17 1. A statement that, according to a report filed with the
18 [secretary] State Treasurer, property is being held to which the
19 addressee appears entitled;
20 2. The name and address of the holder of the property and
21 any necessary information regarding changes of name and address
22 of the holder;
23 3. A statement that, if satisfactory proof of claim is not
24 presented by the owner to the holder by the date specified in
25 the published notice, claims should thereafter be filed with the
26 [secretary] State Treasurer.
27 (e) This section is not applicable to sums payable on
28 travelers checks and money orders or to property reported to be
29 without a rightful or lawful owner.
30 Section 7. Section 1301.13 of the act, amended May 16, 1984
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1 (P.L.197, No.60), is amended to read:
2 Section 1301.13. Payment or Delivery.--(a) Every person who
3 holds property subject to the custody and control of the
4 Commonwealth shall, [within sixty (60) days after receipt of
5 written demand from the secretary and] after compliance with
6 section [1301.12] 1301.11, where required, and on or before
7 April 15 of the year following the year in which the property
8 first became subject to custody and control of the Commonwealth
9 under this article, pay or deliver to the [secretary] State
10 Treasurer all property subject to custody and control of the
11 Commonwealth under this article, except that, if the owner
12 establishes his right to receive the property to the
13 satisfaction of the holder, or if it appears that for some other
14 reason the property is not then subject to custody and control
15 of the Commonwealth under this article, the holder need not pay
16 or deliver the property to the [secretary] State Treasurer, but
17 in lieu thereof shall file a verified written explanation of the
18 proof of claim or as to the reason the property is not subject
19 to custody and control of the Commonwealth.
20 (b) A receipt shall be issued, on behalf of the
21 Commonwealth, for all property received under this article.
22 (c) Notwithstanding subsection (a) of this section, in the
23 case of the deposits and the sums payable under clauses 1 and 3
24 of section 1301.3 the amount of such deposits and such sums
25 shall be paid to the [secretary] State Treasurer on or before
26 the final date for filing the report required by section
27 1301.11.
28 (d) Any person who holds property which may become subject
29 to the custody and control of the Commonwealth pursuant to this
30 act may, with the consent of the [secretary] State Treasurer,
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1 report and deliver such property prior to the expiration of any
2 holding period specified for such reporting. Any person who pays
3 or delivers property prior to the expiration of such holding
4 period shall be relieved of further liability pursuant to
5 section 1301.14. Property thus reported may be disposed of
6 pursuant to [sections 1301.12 and] section 1301.17, but in no
7 event shall the period for filing of claims be diminished by
8 such early delivery or disposition.
9 Section 8. Sections 1301.14, 1301.15 and 1301.16 of the act,
10 added December 9, 1982 (P.L.1057, No.248), are amended to read:
11 Section 1301.14. Relief from Liability by Payment or
12 Delivery.--Upon the payment or delivery of the property to the
13 [secretary] State Treasurer, the Commonwealth shall assume
14 custody and shall be responsible for the safekeeping thereof.
15 Any person who pays or delivers property to the [secretary]
16 State Treasurer under this article is relieved of all liability
17 with respect to the safekeeping of such property so paid or
18 delivered for any claim which then exists or which thereafter
19 may arise or be made in respect to such property. Any holder who
20 has paid moneys to the [secretary] State Treasurer pursuant to
21 this article may make payment to any person appearing to such
22 holder to be entitled thereto. In the case of deposits and sums
23 paid to the [secretary] State Treasurer under subsection (c) of
24 section 1301.13, financial institutions shall make payment to
25 any person appearing to such financial institution to be
26 entitled thereto. Upon proof of such payment by a holder and
27 proof that the payee was entitled thereto, the [secretary] State
28 Treasurer shall forthwith reimburse the holder for such payment
29 together with interest from the date of receipt of such proofs
30 by the [secretary] State Treasurer to a date within thirty (30)
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1 days of the date of mailing of the reimbursement. Interest under
2 this section shall be at the rate prevailing for tax over
3 payments on the date of receipt of the proofs by the [secretary]
4 State Treasurer as provided for in section 806 of this act.
5 Section 1301.15. Income Accruing After Payment or
6 Delivery.--When property is paid or delivered to the [secretary]
7 State Treasurer under this article, the owner is entitled to
8 receive income or other increments actually received by the
9 [secretary] State Treasurer.
10 Section 1301.16. Periods of Limitation.--Except as
11 hereinbelow set forth, the expiration of any period of time
12 specified by statute or court order, during which an action may
13 be commenced or maintained, or could have been commenced or
14 maintained, by the owner against the holder of the property,
15 shall not prevent such property from being subject to the
16 custody and control of the Commonwealth under this article, nor
17 affect the duty to file a report or to pay or deliver the
18 property to the [secretary] State Treasurer, as required by this
19 article, nor bar any action by the [secretary] State Treasurer
20 under this article, provided that:
21 1. If any holder required to file a report under any act in
22 effect prior to the effective date of this article, or under
23 this article, has filed or files a report, no action shall be
24 commenced or maintained against such holder unless it has been
25 or is commenced within fifteen (15) years after such report has
26 been or is filed.
27 2. If any holder was not required to file a report under any
28 act in effect prior to the effective date hereof, no action
29 shall be commenced or maintained unless it has been or is
30 commenced within fifteen (15) years after the property first
20020S1366B2079 - 17 -
1 became escheatable or payable into the State Treasury without
2 escheat.
3 Section 9. Section 1301.17 of the act, amended May 16, 1986
4 (P.L.197, No.60), is amended to read:
5 Section 1301.17. Disposition of Property.--(a) Within a
6 reasonable time after delivery to [him] the State Treasurer of
7 any property under this article, the [secretary] State Treasurer
8 may sell it to the highest bidder at public sale in whatever
9 city in the Commonwealth affords, in [his] the State Treasurer's
10 judgment, the most favorable market for the property involved.
11 The [secretary] State Treasurer may decline the highest bid or
12 reoffer the property for sale if [he] the State Treasurer
13 considers the price bid insufficient. [He] The State Treasurer
14 need not offer any property for sale, if, in [his] the State
15 Treasurer's opinion, the probable cost of sale exceeds the value
16 of the property.
17 (b) If the property is of a type customarily sold on a
18 recognized market or of a type which is subjected to widely
19 distributed standard price quotations, the [secretary] State
20 Treasurer may sell the property without notice by publication or
21 otherwise. The language provided in this section grants to the
22 State Treasurer, express authority to sell any property
23 including, but not limited to, stocks, bonds, notes, bills and
24 all other public or private securities.
25 (c) Property reported or delivered to the custody or control
26 of the [secretary] State Treasurer pursuant to this act may be
27 donated to the use of the Commonwealth or any of its political
28 subdivisions or otherwise consumed or discarded, at the
29 discretion of the [secretary] State Treasurer where, in the
30 opinion of the [secretary] State Treasurer, the costs associated
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1 with delivery, notice or sale exceed the value of the property.
2 Property which is refused or is to be donated to the use of a
3 political subdivision shall first be offered to the political
4 subdivision which holds the property. A donee or purchaser at
5 any sale conducted by the [secretary] State Treasurer pursuant
6 to this article shall receive title to the property purchased,
7 free from all claims of the owner or prior holder thereof and of
8 all persons claiming through or under them. The [secretary]
9 State Treasurer shall execute all documents necessary to
10 complete the transfer of title.
11 (d) The State Treasurer shall be responsible to an owner
12 only for the amount actually received by the State Treasurer
13 upon the sale of any property pursuant to subsections (a), (b)
14 and (c).
15 (e) The State Treasurer shall be required to sell all
16 stocks, bonds and other negotiable financial instruments upon
17 receipt of such items. The State Treasurer shall not be held
18 liable for any loss or gain in the value that the financial
19 instrument would have obtained had the financial instrument been
20 held instead of cashed BEING SOLD. <--
21 Section 10. Sections 1301.18, 1301.19, 1301.20 and 1301.21,
22 added December 9, 1982 (P.L.1057, No.248), are amended to read:
23 Section 1301.18. Deposit of Funds.--(a) All funds received
24 under this article, including the proceeds from the sale of
25 property under section 1301.17, shall forthwith be deposited by
26 the [secretary] State Treasurer in the General Fund of the
27 Commonwealth, except that the [secretary] State Treasurer shall
28 retain in a separate trust fund an amount not exceeding twenty-
29 five thousand dollars ($25,000) plus twenty per centum of
30 deposits and sums paid to the [secretary] State Treasurer under
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1 subsection (c) of section 1301.13 during the preceding twelve
2 (12) months from which [he] the State Treasurer shall make
3 reimbursements under section 1301.14 and prompt payment of
4 claims duly allowed under section 1301.19. Before making the
5 deposit [he] the State Treasurer shall record the name and last
6 known address of each person appearing from the holders' reports
7 to be entitled to the property and of the name and last known
8 address of each insured person or annuitant, and with respect to
9 each policy or contract listed in the report of an insurer, its
10 number, the name of the insurer and the amount due. The record
11 with respect to any specific claim shall be available to the
12 claimant at all regular business hours.
13 [(b) Before (B) [BEFORE making any deposit to the credit of <--
14 the General Fund, the secretary may deduct:
15 (i) Reasonable costs in connection with sale of the
16 property,
17 (ii) Reasonable costs of mailing and publication in
18 connection with any property, and
19 (iii) Reasonable service charges.] THE GENERAL ASSEMBLY <--
20 SHALL ANNUALLY APPROPRIATE TO THE STATE TREASURER SUCH FUNDS AS
21 IT DEEMS NECESSARY AND APPROPRIATE TO ADMINISTER THIS ARTICLE.
22 Section 1301.19. Claim for Property Paid or Delivered.--Any
23 person claiming an interest in any property paid or delivered to
24 the Commonwealth under this article may file a claim thereto or
25 to the proceeds from the sale thereof on the form prescribed by
26 the [secretary] State Treasurer.
27 Section 1301.20. Determination of Claims.--(a) The
28 [secretary] State Treasurer shall consider any claim filed under
29 this article and may hold a hearing and receive evidence
30 concerning it. If a hearing is held, [he] the State Treasurer
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1 shall prepare a finding and a decision in writing on each claim
2 filed, stating the substance of any evidence heard by [him] the
3 State Treasurer and the reasons for [his] the State Treasurer's
4 decision. The decision shall be a public record.
5 (b) If the claim is allowed, the [secretary] State Treasurer
6 shall make payment forthwith.
7 Section 1301.21. Judicial Action upon Determinations.--Any
8 person aggrieved by a decision of the [secretary] State
9 Treasurer, or as to whose claim the [secretary] State Treasurer
10 has failed to act within ninety (90) days after the filing of
11 the claim, may commence an action in the Commonwealth Court to
12 establish his claim. The proceeding shall be brought within
13 thirty (30) days after the decision of the [secretary] State
14 Treasurer or within one hundred twenty (120) days from the
15 filing of the claim if the [secretary] State Treasurer fails to
16 act. The action shall be tried de novo without a jury.
17 Section 11. Section 1301.22 of the act, amended May 16, 1986
18 (P.L.197, No.60), is amended to read:
19 Section 1301.22. Election to Take Payment or Delivery.--The
20 [secretary] State Treasurer may decline to receive any item of
21 property reported, in which event the holder thereof shall be
22 discharged of any liability to the Commonwealth with respect
23 thereto. Unless the holder of the property is notified to the
24 contrary within [one hundred twenty (120)] ninety (90) days
25 after filing the report required under section 1301.11, the
26 [secretary] State Treasurer shall be deemed to have elected to
27 receive the custody of the property.
28 Section 12. Sections 1301.23, 1301.24, 1301.25, 1301.26 and
29 1301.28 of the act, added December 9, 1982 (P.L.1057, No.248),
30 are amended to read:
20020S1366B2079 - 21 -
1 Section 1301.23. Examination of Records.--(a) If the
2 [secretary] State Treasurer has reason to believe that any
3 holder has failed to report property that should have been
4 reported pursuant to this article, the [secretary] State
5 Treasurer may, at reasonable times and upon reasonable notice,
6 examine the records of such person with respect to such
7 property.
8 (b) If a holder fails after the effective date of this
9 subsection to maintain the records required or the records of
10 the holder available for the periods subject to this act are
11 insufficient to permit the preparation of a report, the State
12 Treasurer may require the holder to report and pay the amount
13 the State treasurer may reasonably estimate on the basis of any
14 available records of the holder or on the basis of any other
15 reasonable method of estimation that the State Treasurer may
16 select.
17 Section 1301.24. Proceeding to Compel Reporting or
18 Delivery.--(a) If any person refuses to report, or to pay or
19 deliver property to the [secretary] State Treasurer as required
20 under this article, including property subject to written
21 demands pursuant to section 1301.3 and the amount required to be
22 paid pursuant to section 1301.23(b), the Commonwealth shall
23 bring an action in a court of appropriate jurisdiction to
24 enforce reporting or delivery. In any such action the
25 Pennsylvania Rules of Civil Procedure shall apply, including
26 without limitation those pertaining to discovery. THE STATE <--
27 TREASURER BEARS THE BURDEN OF PROOF REGARDING THE ESTIMATION OF
28 THE VALUE OF PROPERTY PURSUANT TO THIS ARTICLE.
29 (b) If any holder fails, without proper cause, (i) to report
30 or (ii) to pay and deliver to the [secretary] State Treasurer
20020S1366B2079 - 22 -
1 property subject to custody and control of the Commonwealth
2 under this article, such holder shall be liable to pay to the
3 [secretary] State Treasurer interest at the rate of twelve per
4 centum per annum from the time such report should have been
5 filed, to be computed on the value of such property as
6 established in an action by the [secretary] State Treasurer
7 under subsection (a), and such interest shall be recoverable in
8 the same action.
9 Section 1301.25. Penalties.--(a) Any person who, without
10 proper cause, fails to render any report or perform other duties
11 required under this article, shall, upon conviction in a summary
12 proceeding be sentenced to pay a fine of [ten dollars ($10)] one
13 hundred dollars ($100) for each day such report is withheld, but
14 not more than [one thousand dollars ($1,000)] ten thousand
15 dollars ($10,000).
16 (b) Any person who, without proper cause, refuses to pay or
17 deliver property to the [secretary] State Treasurer as required
18 under this article shall be guilty of a misdemeanor and, upon
19 conviction thereof, shall be sentenced to pay a fine of not less
20 than [one hundred dollars ($100)] one thousand dollars ($1,000)
21 nor more than [one thousand dollars ($1,000)] ten thousand
22 dollars ($10,000), or imprisonment for not more than [twelve
23 (12)] twenty-four (24) months, or both.
24 (c) Upon good cause shown, the State Treasurer may waive, in
25 whole or in part, interest and penalties under subsections (a)
26 and (b), and shall waive penalties if the holder acted in good
27 faith and without negligence.
28 Section 1301.26. [Rules and] Regulations.--(a) The
29 [secretary] State Treasurer is hereby authorized to make
30 necessary [rules and] regulations to carry out the provisions of
20020S1366B2079 - 23 -
1 this article.
2 (b) Prior WITHIN 12 MONTHS OF THE EFFECTIVE DATE OF THIS <--
3 SUBSECTION, THE STATE TREASURER SHALL PROMULGATE REGULATIONS
4 REGARDING ESTIMATION CALCULATIONS. PENDING THE PROMULGATION OF
5 THE REGULATIONS AND PRIOR to issuing any demand pursuant to
6 section 1301.24 that incorporates any estimate of amounts due
7 following the State Treasurer's examination of a holder's
8 records, the State Treasurer shall promulgate a statement of
9 policy regarding estimation calculations. Estimation procedures
10 set forth by the statement of policy shall conform to generally
11 accepted auditing standards. THE STATEMENT OF POLICY SHALL <--
12 EXPIRE UPON PROMULGATION OF FINAL REGULATIONS OR ONE YEAR FROM
13 THE EFFECTIVE DATE OF THIS SUBSECTION, WHICHEVER OCCURS FIRST.
14 [Section 1301.28. Exclusions.--The provisions of this
15 article shall not apply to nonprofit hospitalization
16 corporations or nonprofit medical service corporations.]
17 Section 13. The act is amended by adding a section to read:
18 Section 1301.28a. Interdepartmental Cooperation.--The
19 Department of Revenue, the Department of Transportation and the
20 head of any other department, board, commission, agency or
21 instrumentality of the Commonwealth shall, unless otherwise
22 prohibited by law, disclose to the Treasury Department any
23 information which may be of assistance in locating individuals
24 listed in the Treasury Department's records as owners of
25 unclaimed property. The information shall include, but is not
26 limited to, last known addresses. Upon receipt, the Treasury
27 Department shall keep this information confidential and shall
28 use it solely to assist in the process of returning unclaimed
29 property to its rightful owner.
30 Section 14. Section 1301.29 of the act, added December 9,
20020S1366B2079 - 24 -
1 1982 (P.L.1057, No. 248), is amended to read:
2 Section 1301.29. Repeal.--The act of August 9, 1971
3 (P.L.286, No.74), known as the "Disposition of Abandoned and
4 Unclaimed Property Act," [is] and all other provisions of law <--
5 which are inconsistent with this article are hereby IS repealed. <--
6 Section 15. 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. This act shall take effect July 1, 2002.
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