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Pennsylvania House of Representatives
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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2017 - 2018 Regular Session


Posted: March 2, 2018 03:53 PM
From: Representative Kerry A. Benninghoff
To: All House members
Subject: Unclaimed Property, Securities Fix
The Disposition of Abandoned and Unclaimed Property Act was passed to protect the interests of property owners and to provide a mechanism for the safekeeping and rightful return of unclaimed property.

Unfortunately, changes to the law in 2016 caused unintended consequences for passive investors, which resulted in some “buy-and-hold,” minimal activity accounts being incorrectly reported as unclaimed property due to “lost contact.”

My legislation will provide a new definition for “lost contact” so that shares of stock reported to Treasury are only those that have truly been abandoned and unclaimed, not merely held in a passive investment account.

Under my legislation, securities, like cash dividend accounts, dividend investment plan accounts and non-dividend paying accounts, would not be reportable as unclaimed property unless:
  • First Class mail to the owner has been returned as undeliverable; and
  • There has been no account activity for three (3) years after the holder has been unable to reach the owner.

    Only when both of these elements are met will any certificate of stock or participating right in a business association be reportable as unclaimed.

    I hope you will join me in cosponsoring this legislation.

Introduced as HB2167