HF 2538

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 03/28/2019 03:38pm

A bill for an act
relating to commerce; unclaimed property; codifying the Revised Unclaimed
Property Act; appropriating money; amending Minnesota Statutes 2018, sections
345.515; 345.53, subdivision 1, by adding a subdivision; proposing coding for
new law as Minnesota Statutes, chapter 345A; repealing Minnesota Statutes 2018,
section 345.53, subdivision 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

UNCLAIMED PROPERTY; GENERAL

Section 1.

new text begin [345A.101] DEFINITIONS.
new text end

new text begin (1) For the purposes of this chapter, the terms defined in this section have the meanings
given them.
new text end

new text begin (2) "Administrator" means the commissioner of commerce.
new text end

new text begin (3) "Administrator's agent" means a person with which the administrator contracts to
conduct an examination under this chapter on behalf of the administrator. The term includes
an independent contractor of the person and each individual participating in the examination
on behalf of the person or contractor.
new text end

new text begin (4) "Affiliated group of merchants" means two or more affiliated merchants or other
persons that are related by common ownership or common corporate control and that share
the same name, mark, or logo. Affiliated group of merchants also applies to two or more
merchants or other persons that agree among themselves, by contract or otherwise, to redeem
cards, codes, or other devices bearing the same name, mark, or logo, other than the mark,
logo, or brand of a payment network, for the purchase of goods or services solely at such
merchants or persons. However, merchants or other persons are not considered affiliated
merely because they agree to accept a card that bears the mark, logo, or brand of a payment
network.
new text end

new text begin (5) "Apparent owner" means a person whose name appears on the records of a holder
as the owner of property held, issued, or owing by the holder.
new text end

new text begin (6) "Business association" means a corporation, joint stock company, investment
company, other than an investment company registered under the Investment Company Act
of 1940, as amended, United States Code, title 15, sections 80a-1 to 80a-64, partnership,
unincorporated association, joint venture, limited liability company, business trust, trust
company, land bank, safe deposit company, safekeeping depository, financial organization,
insurance company, federally chartered entity, utility, sole proprietorship, or other business
entity, whether or not for profit.
new text end

new text begin (7) "District court" means Ramsey County District Court.
new text end

new text begin (8) "Domicile" means:
new text end

new text begin (A) for a corporation, the state of its incorporation;
new text end

new text begin (B) for a business association whose formation requires a filing with a state, other than
a corporation, the state of its filing;
new text end

new text begin (C) for a federally chartered entity or an investment company registered under the
Investment Company Act of 1940, as amended, United States Code, title 15, sections 80a-1
to 80a-64, the state of its home office; and
new text end

new text begin (D) for any other holder, the state of its principal place of business.
new text end

new text begin (9) "Electronic" means relating to technology having electrical, digital, magnetic, wireless,
optical, electromagnetic, or similar capabilities.
new text end

new text begin (10) "E-mail" means a communication by electronic means which is automatically
retained and stored and may be readily accessed or retrieved.
new text end

new text begin (11) "Financial organization" means a savings and loan association, building and loan
association, savings bank, industrial bank, bank, banking organization, or credit union.
new text end

new text begin (12) "Game-related digital content" means digital content that exists only in an electronic
game or electronic-game platform. The term:
new text end

new text begin (A) includes:
new text end

new text begin i. game-play currency such as a virtual wallet, even if denominated in United States
currency; and
new text end

new text begin ii. the following if for use or redemption only within the game or platform or another
electronic game or electronic-game platform:
new text end

new text begin 1. points sometimes referred to as gems, tokens, gold, and similar names; and
new text end

new text begin 2. digital codes; and
new text end

new text begin (B) does not include an item that the issuer:
new text end

new text begin i. permits to be redeemed for use outside a game or platform for:
new text end

new text begin ii. money; or
new text end

new text begin iii. goods or services that have more than minimal value; or
new text end

new text begin iv. otherwise monetizes for use outside a game or platform.
new text end

new text begin (13) "Gift card" means:
new text end

new text begin (A) a stored-value card:
new text end

new text begin i. issued on a prepaid basis for a specified amount;
new text end

new text begin ii. the value of which does not expire;
new text end

new text begin iii. that is not subject to a dormancy, inactivity, or service fee;
new text end

new text begin iv. that may be decreased in value only by redemption for merchandise, goods, or services
upon presentation at a single merchant or an affiliated group of merchants;
new text end

new text begin v. that, unless required by law, may not be redeemed for or converted into money or
otherwise monetized by the issuer; and
new text end

new text begin (B) includes a prepaid commercial mobile radio service, as defined in Code of Federal
Regulations, title 47, section 20.3, as amended.
new text end

new text begin (14) "Holder" means a person obligated to hold for the account of, or to deliver or pay
to, the owner, property subject to this chapter.
new text end

new text begin (15) "Insurance company" means an association, corporation, or fraternal or
mutual-benefit organization, whether or not for profit, engaged in the business of providing
life endowments, annuities, or insurance, including accident, burial, casualty, credit-life,
contract-performance, dental, disability, fidelity, fire, health, hospitalization, illness, life,
malpractice, marine, mortgage, surety, wage-protection, and worker-compensation insurance.
new text end

new text begin (16) "Loyalty card" means a record given without direct monetary consideration under
an award, reward, benefit, loyalty, incentive, rebate, or promotional program which may
be used or redeemed only to obtain goods or services or a discount on goods or services.
Loyalty card does not include a record that may be redeemed for money or otherwise
monetized by the issuer.
new text end

new text begin (17) "Mineral" means gas, oil, coal, oil shale, other gaseous liquid or solid hydrocarbon,
cement material, sand and gravel, road material, building stone, chemical raw material,
gemstone, fissionable and nonfissionable ores, colloidal and other clay, steam and other
geothermal resources, and any other substance defined as a mineral by law of this state other
than this chapter.
new text end

new text begin (18) "Mineral proceeds" means an amount payable for extraction, production, or sale of
minerals, or, on the abandonment of the amount, an amount that becomes payable after
abandonment. Mineral proceeds includes an amount payable:
new text end

new text begin (A) for the acquisition and retention of a mineral lease, including a bonus, royalty,
compensatory royalty, shut-in royalty, minimum royalty, and delay rental;
new text end

new text begin (B) for the extraction, production, or sale of minerals, including a net revenue interest,
royalty, overriding royalty, extraction payment, and production payment; and
new text end

new text begin (C) under an agreement or option, including a joint-operating agreement, unit agreement,
pooling agreement, and farm-out agreement.
new text end

new text begin (19) "Money order" means a payment order for a specified amount of money. Money
order includes an express money order and a personal money order on which the remitter
is the purchaser.
new text end

new text begin (20) "Municipal bond" means a bond or evidence of indebtedness issued by a municipality
or other political subdivision of a state.
new text end

new text begin (21) "Net card value" means the original purchase price or original issued value of a
stored-value card, plus amounts added to the original price or value, minus amounts used
and any service charge, fee, or dormancy charge permitted by law.
new text end

new text begin (22) "Nonfreely transferable security" means a security that cannot be delivered to the
administrator by the Depository Trust Clearing Corporation or similar custodian of securities
providing post-trade clearing and settlement services to financial markets or cannot be
delivered because there is no agent to effect transfer. Nonfreely transferable security includes
a worthless security.
new text end

new text begin (23) "Owner" means a person that has a legal, beneficial, or equitable interest in property
subject to this chapter or the person's legal representative when acting on behalf of the
owner. Owner includes:
new text end

new text begin (A) a depositor, for a deposit;
new text end

new text begin (B) a beneficiary, for a trust other than a deposit in trust;
new text end

new text begin (C) a creditor, claimant, or payee, for other property; and
new text end

new text begin (D) the lawful bearer of a record that may be used to obtain money, a reward, or a thing
of value.
new text end

new text begin (24) "Payroll card" means a record that evidences a payroll card account as defined in
Regulation E, Code of Federal Regulations, title 12, part 1005, as amended.
new text end

new text begin (25) "Person" means an individual, estate, business association, public corporation,
government or governmental subdivision, agency, instrumentality, or other legal entity
whether or not for profit.
new text end

new text begin (26) "Property" means tangible property described in section 345A.205 or a fixed and
certain interest in intangible property held, issued, or owed in the course of a holder's business
or by a government, governmental subdivision, agency, or instrumentality. Property:
new text end

new text begin (A) includes all income from or increments to the property;
new text end

new text begin (B) includes property referred to as or evidenced by:
new text end

new text begin i. money, virtual currency, interest, dividend, check, draft, deposit, or payroll card;
new text end

new text begin ii. a credit balance, customer's overpayment, stored-value card, security deposit, refund,
credit memorandum, unpaid wage, unused ticket for which the issuer has an obligation to
provide a refund, mineral proceeds, or unidentified remittance;
new text end

new text begin iii. a security except for:
new text end

new text begin 1. a worthless security; or
new text end

new text begin 2. a security that is subject to a lien, legal hold, or restriction evidenced on the records
of the holder or imposed by operation of law, if the lien, legal hold, or restriction restricts
the holder's or owner's ability to receive, transfer, sell, or otherwise negotiate the security;
new text end

new text begin iv. a bond, debenture, note, or other evidence of indebtedness;
new text end

new text begin v. money deposited to redeem a security, make a distribution, or pay a dividend;
new text end

new text begin vi. an amount due and payable under an annuity contract or insurance policy; and
new text end

new text begin vii. an amount distributable from a trust or custodial fund established under a plan to
provide health, welfare, pension, vacation, severance, retirement, death, stock purchase,
profit-sharing, employee savings, supplemental unemployment insurance, or a similar
benefit; and
new text end

new text begin (C) does not include:
new text end

new text begin i. property held in a plan described in section 529A of the Internal Revenue Code, as
amended, United States Code, title 26, section 529A;
new text end

new text begin ii. game-related digital content;
new text end

new text begin iii. a loyalty card;
new text end

new text begin iv. a gift card; or
new text end

new text begin v. money held or owing by a public pension fund enumerated in section 356.20,
subdivision 2, or 356.30, subdivision 3; or covered by sections 69.77 or 69.771 to 69.776,
if the plan governing the public pension fund includes a provision governing the disposition
of unclaimed amounts of money.
new text end

new text begin (27) "Putative holder" means a person believed by the administrator to be a holder, until
the person pays or delivers to the administrator property subject to this chapter or the
administrator or a court makes a final determination that the person is or is not a holder.
new text end

new text begin (28) "Record" means information that is inscribed on a tangible medium or that is stored
in an electronic or other medium and is retrievable in perceivable form. "Records of the
holder" includes records maintained by a third party that has contracted with the holder.
new text end

new text begin (29) "Security" means:
new text end

new text begin (A) a security as defined in article 8 of the Uniform Commercial Code, section 336.8-102;
new text end

new text begin (B) a security entitlement as defined in article 8 of the Uniform Commercial Code,
section 336.8-102, including a customer security account held by a registered broker-dealer,
to the extent the financial assets held in the security account are not:
new text end

new text begin i. registered on the books of the issuer in the name of the person for which the
broker-dealer holds the assets;
new text end

new text begin ii. payable to the order of the person; or
new text end

new text begin iii. specifically endorsed to the person; or
new text end

new text begin (C) an equity interest in a business association not included in subparagraph (A) or (B).
new text end

new text begin (30) "State" means a state of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the United States Virgin Islands, or any territory or insular
possession subject to the jurisdiction of the United States.
new text end

new text begin (31) "Stored-value card" means a record evidencing a promise made for consideration
by the seller or issuer of the record that goods, services, or money will be provided to the
owner of the record to the value or amount shown in the record. Stored-value card:
new text end

new text begin (A) includes:
new text end

new text begin i. a record that contains or consists of a microprocessor chip, magnetic strip, or other
means for the storage of information, which is prefunded and whose value or amount is
decreased on each use and increased by payment of additional consideration; and
new text end

new text begin ii. a payroll card; and
new text end

new text begin (B) does not include a loyalty card, gift card, or game-related digital content.
new text end

new text begin (32) "Utility" means a person that owns or operates for public use a plant, equipment,
real property, franchise, or license for the following public services:
new text end

new text begin (A) transmission of communications or information;
new text end

new text begin (B) production, storage, transmission, sale, delivery, or furnishing of electricity, water,
steam, or gas; or
new text end

new text begin (C) provision of sewage or septic services, or trash, garbage, or recycling disposal.
new text end

new text begin (33) "Virtual currency" means a digital representation of value used as a medium of
exchange, unit of account, or store of value, which does not have legal tender status
recognized by the United States. Virtual currency does not include:
new text end

new text begin (A) the software or protocols governing the transfer of the digital representation of value;
new text end

new text begin (B) game-related digital content; or
new text end

new text begin (C) a loyalty card or gift card.
new text end

new text begin (34) "Worthless security" means a security whose cost of liquidation and delivery to the
administrator would exceed the value of the security on the date a report is due under this
chapter.
new text end

Sec. 2.

new text begin [345A.102] INAPPLICABILITY TO FOREIGN TRANSACTION.
new text end

new text begin This chapter does not apply to property held, due, and owing in a foreign country if the
transaction out of which the property arose was a foreign transaction.
new text end

ARTICLE 2

UNCLAIMED PROPERTY; PRESUMPTION OF ABANDONMENT

Section 1.

new text begin [345A.201] WHEN PROPERTY PRESUMED ABANDONED.
new text end

new text begin Subject to section 345A.210, the following property is presumed abandoned if it is
unclaimed by the apparent owner during the period specified below:
new text end

new text begin (1) a traveler's check, 15 years after issuance;
new text end

new text begin (2) a money order, seven years after issuance;
new text end

new text begin (3) cooperative property, including any profit distribution or other sum held or owing
by a cooperative to a participating patron is presumed abandoned only if it has remained
unclaimed by the owner for more than seven years after it became payable or distributable;
new text end

new text begin (4) a state or municipal bond, bearer bond, or original-issue discount bond, three years
after the earliest of the date the bond matures or is called or the obligation to pay the principal
of the bond arises;
new text end

new text begin (5) a debt of a business association, three years after the obligation to pay arises;
new text end

new text begin (6) demand, savings, or time deposit, including a deposit that is automatically renewable,
three years after the later of the maturity or the date of the last indication of interest in the
property by the apparent owner, except a deposit that is automatically renewable is deemed
matured three years after its initial date of maturity unless the apparent owner consented to
renewal in a record on file with the holder at or about the time of the renewal;
new text end

new text begin (7) money or a credit owed to a customer as a result of a retail business transaction, other
than in-store credit for returned merchandise, three years after the obligation arose;
new text end

new text begin (8) an amount owed by an insurance company on a life or endowment insurance policy
or an annuity contract that has matured or terminated, three years after the obligation to pay
arose under the terms of the policy or contract or, if a policy or contract for which an amount
is owed on proof of death has not matured by proof of the death of the insured or annuitant,
as follows:
new text end

new text begin (A) with respect to an amount owed on a life or endowment insurance policy, the earlier
of:
new text end

new text begin i. three years after the death of the insured; or
new text end

new text begin ii. two years after the insured has attained, or would have attained if living, the limiting
age under the mortality table in which the reserve for the policy is based; and
new text end

new text begin (B) with respect to an amount owed on an annuity contract, three years after the date of
the death of the annuitant;
new text end

new text begin (9) funds on deposit or held in trust for the prepayment of funeral or other funeral-related
expenses, the earliest of:
new text end

new text begin (A) two years after the date of death of the beneficiary;
new text end

new text begin (B) one year after the date the beneficiary has attained, or would have attained if living,
the age of 105 where the holder does not know whether the beneficiary is deceased; or
new text end

new text begin (C) 30 years after the contract for prepayment was executed;
new text end

new text begin (10) property distributable by a business association in the course of dissolution, one
year after the property becomes distributable;
new text end

new text begin (11) property held by a court, including property received as proceeds of a class action,
three years after the property becomes distributable;
new text end

new text begin (12) property held by a government or governmental subdivision, agency, or
instrumentality, including municipal bond interest and unredeemed principal under the
administration of a paying agent or indenture trustee, one year after the property becomes
distributable;
new text end

new text begin (13) wages, commissions, bonuses, or reimbursements to which an employee is entitled,
or other compensation for personal services, including amounts held on a payroll card, one
year after the amount becomes payable;
new text end

new text begin (14) a deposit or refund owed to a subscriber by a utility, one year after the deposit or
refund becomes payable; and
new text end

new text begin (15) property not specified in this section or sections 345A.202 to 345A.208, the earlier
of three years after the owner first has a right to demand the property or the obligation to
pay or distribute the property arises.
new text end

new text begin Notwithstanding any provision in this section to the contrary, and subject to section
345A.210, a deceased owner cannot indicate interest in the owner's property. If the owner
is deceased and the abandonment period for the owner's property specified in this section
is greater than two years, then the property, excluding any amounts owed by an insurance
company on a life or endowment insurance policy or an annuity contract that has matured
or terminated, shall instead be presumed abandoned two years from the date of the owner's
last indication of interest in the property.
new text end

Sec. 2.

new text begin [345A.202] WHEN TAX-DEFERRED RETIREMENT ACCOUNT
PRESUMED ABANDONED.
new text end

new text begin (a) Subject to section 345A.210, property held in a pension account or retirement account
that qualifies for tax deferral under the income tax laws of the United States is presumed
abandoned if it is unclaimed by the apparent owner after the later of:
new text end

new text begin (1) three years after the following dates:
new text end

new text begin (A) except as in subparagraph (B), the date a communication sent by the holder by
first-class United States mail to the apparent owner is returned to the holder undelivered by
the United States Postal Service; or
new text end

new text begin (B) if such communication is re-sent within 30 days after the date the first communication
is returned undelivered, the date the second communication was returned undelivered by
the United States Postal Service; or
new text end

new text begin (2) the earlier of the following dates:
new text end

new text begin (A) three years after the date the apparent owner becomes 70.5 years of age, if
determinable by the holder; or
new text end

new text begin (B) one year after the date of mandatory distribution following death if the Internal
Revenue Code, as amended, United States Code, title 26, section 1, et seq., requires
distribution to avoid a tax penalty and the holder:
new text end

new text begin (i) receives confirmation of the death of the apparent owner in the ordinary course of
its business; or
new text end

new text begin (ii) confirms the death of the apparent owner under subsection (b).
new text end

new text begin (b) If a holder in the ordinary course of its business receives notice or an indication of
the death of an apparent owner and subsection (a)(2) applies, the holder shall attempt, not
later than 90 days after receipt of the notice or indication, to confirm whether the apparent
owner is deceased.
new text end

new text begin (c) If the holder does not send communications to the apparent owner of an account
described in subsection (a) by first-class United States mail, the holder shall attempt to
confirm the apparent owner's interest in the property by sending the apparent owner an
e-mail communication not later than two years after the apparent owner's last indication of
interest in the property; however, the holder promptly shall attempt to contact the apparent
owner by first-class United States mail if:
new text end

new text begin (1) the holder does not have information needed to send the apparent owner an e-mail
communication or the holder believes that the apparent owner's e-mail address in the holder's
records is not valid;
new text end

new text begin (2) the holder receives notification that the e-mail communication was not received; or
new text end

new text begin (3) the apparent owner does not respond to the e-mail communication not later than 30
days after the communication was sent.
new text end

new text begin (d) If first-class United States mail sent under subsection (c) is returned to the holder
undelivered by the United States Postal Service, the property is presumed abandoned three
years after the later of:
new text end

new text begin (1) except as in paragraph (2), the date a communication to contact the apparent owner
sent by first-class United States mail is returned to the holder undelivered;
new text end

new text begin (2) if such communication is sent later than 30 days after the date the first communication
is returned undelivered, the date the second communication was returned undelivered; or
new text end

new text begin (3) the date established by subsection (a)(2).
new text end

Sec. 3.

new text begin [345A.203] WHEN OTHER TAX-DEFERRED ACCOUNT PRESUMED
ABANDONED.
new text end

new text begin (a) Subject to section 345A.210 and except for property described in section 345A.202
and property held in a plan described in section 529A of the Internal Revenue Code, as
amended; United States Code, title 26, section 529A, property held in an account or plan,
including a health savings account, that qualifies for tax deferral under the income tax laws
of the United States is presumed abandoned if it is unclaimed by the apparent owner three
years after the earlier of:
new text end

new text begin (1) the date, if determinable by the holder, specified in the income tax laws and
regulations of the United States by which distribution of the property must begin to avoid
a tax penalty, with no distribution having been made; or
new text end

new text begin (2) 30 years after the date the account was opened.
new text end

new text begin (b) If the owner is deceased, property subject to this section is presumed abandoned two
years from the earliest of:
new text end

new text begin (1) the date of the distribution or attempted distribution of the property;
new text end

new text begin (2) the date the required distribution as stated in the plan or trust agreement governing
the plan; or
new text end

new text begin (3) the date, if determinable by the holder, specified in the income tax laws of the United
States by which distribution of the property must begin in order to avoid a tax penalty.
new text end

Sec. 4.

new text begin [345A.204] WHEN CUSTODIAL ACCOUNT FOR MINOR PRESUMED
ABANDONED.
new text end

new text begin (a) Subject to section 345A.210, property held in an account established under a state's
Uniform Gifts to Minors Act or Uniform Transfers to Minors Act is presumed abandoned
if it is unclaimed by or on behalf of the minor on whose behalf the account was opened
three years after the later of:
new text end

new text begin (1) except as in paragraph (2), the date a communication sent by the holder by first-class
United States mail to the custodian of the minor on whose behalf the account was opened
is returned undelivered to the holder by the United States Postal Service;
new text end

new text begin (2) if the communication is re-sent later than 30 days after the date the first
communication is returned undelivered, the date the second communication was returned
undelivered; or
new text end

new text begin (3) the date on which the custodian is required to transfer the property to the minor or
the minor's estate in accordance with the Uniform Gifts to Minors Act or Uniform Transfers
to Minors Act of the state in which the account was opened.
new text end

new text begin (b) If the holder does not send communications to the custodian of the minor on whose
behalf an account described in subsection (a) was opened by first-class United States mail,
the holder shall attempt to confirm the custodian's interest in the property by sending the
custodian an e-mail communication not later than two years after the custodian's last
indication of interest in the property; however, the holder promptly shall attempt to contact
the custodian by first-class United States mail if:
new text end

new text begin (1) the holder does not have information needed to send the custodian an e-mail
communication or the holder believes that the custodian's e-mail address in the holder's
records is not valid;
new text end

new text begin (2) the holder receives notification that the e-mail communication was not received; or
new text end

new text begin (3) the custodian does not respond to the e-mail communication not later than 30 days
after the communication was sent.
new text end

new text begin (c) If first-class United States mail sent under subsection (b) is returned undelivered to
the holder by the United States Postal Service, the property is presumed abandoned three
years after the later of:
new text end

new text begin (1) the date a communication to contact the custodian by first-class United States mail
is returned to the holder undelivered by the United States Postal Service; or
new text end

new text begin (2) the date established by subsection (a)(3).
new text end

new text begin (d) When the property in the account described in subsection (a) is transferred to the
minor on whose behalf an account was opened or to the minor's estate, the property in the
account is no longer subject to this section.
new text end

Sec. 5.

new text begin [345A.205] WHEN CONTENTS OF SAFE DEPOSIT BOX PRESUMED
ABANDONED.
new text end

new text begin Tangible property held in a safe deposit box and proceeds from a sale of the property
by the holder permitted by law of this state other than this chapter are presumed abandoned
if the property remains unclaimed by the apparent owner five years after the earlier of the:
new text end

new text begin (1) expiration of the lease or rental period for the safe deposit box; or
new text end

new text begin (2) earliest date when the lessor of the safe deposit box is authorized by law of this state
other than this chapter to enter the safe deposit box and remove or dispose of the contents
without consent or authorization of the lessee.
new text end

Sec. 6.

new text begin [345A.206] WHEN STORED-VALUE CARD PRESUMED ABANDONED.
new text end

new text begin (a) Subject to section 345A.210, the net card value of a stored-value card, other than a
payroll card or a gift card, is presumed abandoned on the latest of three years after:
new text end

new text begin (1) December 31 of the year in which the card is issued or additional funds are deposited
into it;
new text end

new text begin (2) the most recent indication of interest in the card by the apparent owner; or
new text end

new text begin (3) a verification or review of the balance by or on behalf of the apparent owner.
new text end

new text begin (b) The amount presumed abandoned in a stored-value card is the net card value at the
time it is presumed abandoned.
new text end

new text begin (c) If a holder has reported and remitted to the administrator the net card value on a
stored-value card presumed abandoned under this section and the stored-value card does
not have an expiration date, then the holder must honor the card on presentation indefinitely
and may then request reimbursement from the administrator under section 345A.605.
new text end

Sec. 7.

new text begin [345A.208] WHEN SECURITY PRESUMED ABANDONED.
new text end

new text begin (a) Subject to section 345A.210, a security is presumed abandoned after the earlier of
the following:
new text end

new text begin (1) three years after the date a communication sent by the holder by first-class United
States mail to the apparent owner is returned to the holder undelivered by the United States
Postal Service or if such communication is re-sent no later than 30 days after the first
communication is returned, the date the second communication is returned undelivered to
the holder by the United States Postal Service; or
new text end

new text begin (2) five years after the date of the apparent owner's last indication of interest in the
security.
new text end

new text begin (b) If the holder does not send communications to the apparent owner of a security by
first-class United States mail, the holder shall attempt to confirm the apparent owner's
interest in the security by sending the apparent owner an e-mail communication not later
than two years after the apparent owner's last indication of interest in the security; however,
the holder promptly shall attempt to contact the apparent owner by first-class United States
mail if:
new text end

new text begin (1) the holder does not have information needed to send the apparent owner an e-mail
communication or the holder believes that the apparent owner's e-mail address in the holder's
records is not valid;
new text end

new text begin (2) the holder receives notification that the e-mail communication was not received; or
new text end

new text begin (3) the apparent owner does not respond to the e-mail communication not later than 30
days after the communication was sent.
new text end

new text begin (c) If first-class United States mail sent under subsection (b) is returned to the holder
undelivered by the United States Postal Service, the security is presumed abandoned in
accordance with subsection (a)(2).
new text end

new text begin (d) If a holder, in the ordinary course of business, receives notice or an indication of the
death of an apparent owner, the holder shall attempt, not later than 90 days after receipt of
the notice or indication, to confirm whether the apparent owner is deceased. Notwithstanding
the standards set forth in subsections (a), (b), and (c), if the holder either receives
confirmation of the death of the apparent owner in the ordinary course of business or confirms
the death of the apparent owner under this subsection, then the property shall be presumed
abandoned two years after the date of the owner's death.
new text end

Sec. 8.

new text begin [345A.209] WHEN RELATED PROPERTY PRESUMED ABANDONED.
new text end

new text begin At and after the time property is presumed abandoned under this chapter, any other
property right or interest accrued or accruing from the property and not previously presumed
abandoned is also presumed abandoned.
new text end

Sec. 9.

new text begin [345A.210] INDICATION OF APPARENT OWNER INTEREST IN
PROPERTY.
new text end

new text begin (a) The period after which property is presumed abandoned is measured from the later:
new text end

new text begin (1) the date the property is presumed abandoned under sections 345A.201 to 345A.211;
or
new text end

new text begin (2) the latest indication of interest by the apparent owner in the property.
new text end

new text begin (b) Under this chapter, an indication of an apparent owner's interest in property includes:
new text end

new text begin (1) a record communicated by the apparent owner to the holder or agent of the holder
concerning the property or the account in which the property is held;
new text end

new text begin (2) an oral communication by the apparent owner to the holder or agent of the holder
concerning the property or the account in which the property is held, if the holder or its
agent contemporaneously makes and preserves a record of the fact of the apparent owner's
communication;
new text end

new text begin (3) presentment of a check or other instrument of payment of a dividend, interest payment,
or other distribution, or evidence of receipt of a distribution made by electronic or similar
means, with respect to an account, underlying security, or interest in a business association.
new text end

new text begin (4) activity directed by an apparent owner in the account in which the property is held,
including accessing the account or information concerning the account, or a direction by
the apparent owner to increase, decrease, or otherwise change the amount or type of property
held in the account;
new text end

new text begin (5) a deposit into or withdrawal from an account at a financial organization, except for
an automatic debit or credit previously authorized by the apparent owner or an automatic
reinvestment of dividends or interest; and
new text end

new text begin (6) subject to subsection (e), payment of a premium on an insurance policy.
new text end

new text begin (c) An action by an agent or other representative of an apparent owner, other than the
holder acting as the apparent owner's agent, is presumed to be an action on behalf of the
apparent owner.
new text end

new text begin (d) A communication with an apparent owner by a person other than the holder or the
holder's representative is not an indication of interest in the property by the apparent owner
unless a record of the communication evidences the apparent owner's knowledge of a right
to the property.
new text end

new text begin (e) If the insured dies or the insured or beneficiary of an insurance policy otherwise
becomes entitled to the proceeds before depletion of the cash surrender value of the policy
by operation of an automatic premium loan provision or other nonforfeiture provision
contained in the policy, the operation does not prevent the policy from maturing or
terminating.
new text end

new text begin (f) If the apparent owner has other property with the holder to which section 345A.201,
paragraph (6), applies, the activity directed by the apparent owner toward any other accounts,
including but not limited to loan accounts, at the financial organization holding an inactive
account of the apparent owner shall be an indication of interest in all such accounts if:
new text end

new text begin (1) the apparent owner engages in one or more of the following activities:
new text end

new text begin (A) the apparent owner undertakes one or more of the actions described in subsection
(b) regarding an account that appears on a consolidated statement with the inactive account;
new text end

new text begin (B) the apparent owner increases or decreases the amount of funds in any other account
the apparent owner has with the financial organization; or
new text end

new text begin (C) the apparent owner engages in any other relationship with the financial organization,
including payment of any amounts due on a loan; and
new text end

new text begin (2) the mailing address for the apparent owner in the financial organization's records is
the same for both the inactive account and the active account.
new text end

Sec. 10.

new text begin [345A.211] KNOWLEDGE OF DEATH OF INSURED OR ANNUITANT.
new text end

new text begin (a) In this section, "death master file" ("DMF") means the United States Social Security
Administration Death Master File or other database or service that is at least as
comprehensive as the United States Social Security Administration Death Master File for
determining that an individual reportedly has died.
new text end

new text begin (b) With respect to a life or endowment insurance policy or annuity contract for which
an amount is owed on proof of death, but which has not matured by proof of death of the
insured or annuitant, the company has knowledge of the death of an insured or annuitant
when:
new text end

new text begin (1) the company receives a death certificate or court order determining that the insured
or annuitant has died;
new text end

new text begin (2) the company receives notice of the death of the insured or annuitant from the
administrator or an unclaimed property administrator of another state, a beneficiary, a policy
owner, a relative of the insured, a representative under the Probate Act of 1975, or an
executor or other legal representative of the insured's or annuitant's estate and validates the
death of the insured or annuitant;
new text end

new text begin (3) the company conducts a comparison for any purpose between a DMF and the names
of some or all of the company's insureds or annuitants, finds a match that provides notice
that the insured or annuitant has died, and validates the death; or
new text end

new text begin (4) the administrator or the administrator's agent conducts a comparison for the purpose
of finding matches during an examination conducted under this chapter between a DMF
and the names of some or all of the company's insureds or annuitants, and finds a match
that provides notice that the insured or annuitant has died.
new text end

new text begin (c) A holder shall perform a comparison of its insureds' in-force policies, annuity
contracts, and retained asset accounts against a DMF on at least a semiannual basis by using
the full DMF once and thereafter using DMF updated files for future comparisons to identify
potential matches of its insureds.
new text end

new text begin (d) A death master file match under subsection (b)(3) or (4) occurs if the criteria for an
exact or partial match are satisfied.
new text end

new text begin (1) an exact match occurs when the Social Security number, first and last name, and
date of birth contained in the holder's records matches exactly to the data contained in the
DMF;
new text end

new text begin (2) a partial match occurs in any of the following circumstances:
new text end

new text begin (A) when the Social Security number contained in the data found in the holder's records
matches exactly or in accordance with the fuzzy match criteria listed below to the Social
Security number contained in the DMF, the first and last names match either exactly or in
accordance with the fuzzy match criteria listed below, and the date of birth matches exactly
or in accordance with the fuzzy match criteria listed below;
new text end

new text begin (B) when the holder's records do not include a Social Security number or where the
Social Security number is incomplete or otherwise invalid, and there is a first name, last
name, and date of birth combination in the holder's data that is a match against the data
contained in the DMF where the first and last names match either exactly or in accordance
with the fuzzy match criteria listed below and the date of birth matches exactly or in
accordance with the fuzzy match criteria listed below;
new text end

new text begin (C) if there is more than one potentially matched individual returned as a result of the
process described in paragraphs (A) and (B) above, the holder shall search the Social Security
numbers obtained from the DMF for the potential matched individuals against Accurint for
Insurance or an equivalent database. If a search of those databases shows that the DMF
Social Security number is listed at the address in the holder's records for the insured, a
partial match will be considered to have been made only for individuals with a matching
address;
new text end

new text begin (D) fuzzy match criteria includes the following:
new text end

new text begin (i) a first name fuzzy match includes one or more of the following: a nickname; an initial
instead of a full first name; accepted industry standard phonetic name-matching algorithm;
data entry mistakes with a maximum difference of one character with at least five characters
in length; a first and last name are provided and cannot be reliably distinguished from one
another; use of interchanged first name and middle name; a misused compound name; and
the use of a "Mrs." in conjunction with a spouse's name where the date of birth and Social
Security number match exactly and the last name matches exactly or in accordance with
the fuzzy match criteria listed herein;
new text end

new text begin (ii) a last name fuzzy match includes one or more of the following: Anglicized forms
of last names; compound last name; blank spaces in last name; accepted industry standard
phonetic name-matching algorithm; a first and last name are provided and cannot be reliably
distinguished from one another; use of apostrophe or other punctuation; data entry mistakes
with a maximum difference of one character for last name with at least eight characters in
length; and married female last name variations;
new text end

new text begin (iii) a date of birth fuzzy match includes one of the following: two dates with a maximum
of two digits in difference, but only one entry mistake per full date is allowable; transposition
of the month and date portion of the date of birth; if the holder's records do not contain a
complete date of birth, then a fuzzy match date of birth will be found to exist where the data
available in the holder's records does not conflict with the data contained in the DMF; if
the holder provided a first and last name match, either exactly or in accordance with the
fuzzy match criteria herein and the Social Security number matches exactly against the
DMF, the date of birth is a fuzzy match if the holder provided a date of birth that is within
two years of the DMF-listed date of birth;
new text end

new text begin (iv) a Social Security number fuzzy match includes one of the following: two Social
Security numbers with a maximum of two digits in difference, any number position; two
consecutive numbers are transposed; and the Social Security number is less than nine digits
in length, but at least seven digits, and is entirely embedded within the other Social Security
number;
new text end

new text begin (3) the DMF match does not constitute proof of death for the purpose of submission to
an insurance company of a claim by a beneficiary, annuitant, or owner of the policy or
contract for an amount due under an insurance policy or annuity contract;
new text end

new text begin (4) the DMF match or validation of the insured's or annuitant's death does not alter the
requirements for a beneficiary, annuitant, or owner of the policy or contract to make a claim
to receive proceeds under the terms of the policy or contract;
new text end

new text begin (5) an insured or an annuitant is presumed dead if the date of the person's death is
indicated by the DMF match under either subsection (b)(3) or (4), unless the insurer has
competent and substantial evidence that the person is living, including but not limited to a
contact made by the insurer with the person or the person's legal representation.
new text end

new text begin (e) This chapter does not affect the determination of the extent to which an insurance
company before the effective date of this chapter had knowledge of the death of an insured
or annuitant or was required to conduct a DMF comparison to determine whether amounts
owed by the company on a life or endowment insurance policy or annuity contract were
presumed abandoned or unclaimed.
new text end

Sec. 11.

new text begin [345A.211] DEPOSIT ACCOUNT FOR PROCEEDS OF INSURANCE
POLICY OR ANNUITY CONTRACT.
new text end

new text begin If proceeds payable under a life or endowment insurance policy or annuity contract are
deposited into an account with check or draft-writing privileges for the beneficiary of the
policy or contract and, under a supplementary contract not involving annuity benefits other
than death benefits, the proceeds are retained by the insurance company or the financial
organization where the account is held, the policy or contract includes the assets in the
account.
new text end

ARTICLE 3

UNCLAIMED PROPERTY; RULES FOR TAKING CUSTODY OF PROPERTY
PRESUMED ABANDONED

Section 1.

new text begin [345A.301] ADDRESS OF APPARENT OWNER TO ESTABLISH
PRIORITY.
new text end

new text begin In sections 345A.301 to 345A.307, the following rules apply:
new text end

new text begin (1) The last known address of an apparent owner is any description, code, or other
indication of the location of the apparent owner which identifies the state, even if the
description, code, or indication of location is not sufficient to direct the delivery of first-class
United States mail to the apparent owner.
new text end

new text begin (2) If the United States postal zip code associated with the apparent owner is for a post
office located in this state, this state is deemed to be the state of the last known address of
the apparent owner unless other records associated with the apparent owner specifically
identify the physical address of the apparent owner to be in another state.
new text end

new text begin (3) If the address under paragraph (2) is in another state, the other state is deemed to be
the state of the last known address of the apparent owner.
new text end

new text begin (4) The address of the apparent owner of a life or endowment insurance policy or annuity
contract or its proceeds is presumed to be the address of the insured or annuitant if a person
other than the insured or annuitant is entitled to the amount owed under the policy or contract
and the address of the other person is not known by the insurance company and cannot be
determined under section 345A.302.
new text end

Sec. 2.

new text begin [345A.302] ADDRESS OF APPARENT OWNER IN THIS STATE.
new text end

new text begin The administrator may take custody of property that is presumed abandoned, whether
located in this state, another state, or a foreign country, if:
new text end

new text begin (1) the last known address of the apparent owner in the records of the holder is in this
state; or
new text end

new text begin (2) the records of the holder do not reflect the identity or last known address of the
apparent owner, but the administrator has determined that the last known address of the
apparent owner is in this state.
new text end

Sec. 3.

new text begin [345A.303] IF RECORDS SHOW MULTIPLE ADDRESSES OF APPARENT
OWNER.
new text end

new text begin (a) Except as provided in subsection (b), if records of a holder reflect multiple addresses
for an apparent owner and this state is the state of the last known address, this state may
take custody of property presumed abandoned, whether located in this state or another state.
new text end

new text begin (b) If it appears from records of the holder that the last known address of the apparent
owner under subsection (a) is a temporary address and this state is the state of the next most
recently recorded address that is not a temporary address, this state may take custody of the
property presumed abandoned.
new text end

Sec. 4.

new text begin [345A.304] HOLDER DOMICILED IN THIS STATE.
new text end

new text begin (a) Except as provided in subsection (b) or section 345A.302 or 345A.303, the
administrator may take custody of property presumed abandoned, whether located in this
state, another state, or a foreign country, if the holder is domiciled in this state, another state,
or a governmental subdivision, agency, or instrumentality of this state and:
new text end

new text begin (1) another state or foreign country is not entitled to the property because there is no last
known address of the apparent owner or other person entitled to the property in the records
of the holder; or
new text end

new text begin (2) the state or foreign country of the last known address of the apparent owner or other
person entitled to the property does not provide for custodial taking of the property.
new text end

new text begin (b) Property is not subject to custody of the administrator under subsection (a) if the
property is specifically exempt from custodial taking under the law of this state, another
state, or foreign country of the last known address of the apparent owner.
new text end

new text begin (c) If a holder's state of domicile has changed since the time the property was presumed
abandoned, the holder's state of domicile in this section is deemed to be the state where the
holder was domiciled at the time the property was presumed abandoned.
new text end

Sec. 5.

new text begin [345A.305] CUSTODY IF TRANSACTION TOOK PLACE IN THIS STATE.
new text end

new text begin Except as provided in sections 345A.302 to 345A.304, the administrator may take custody
of property presumed abandoned whether located in this state or another state if:
new text end

new text begin (1) the transaction out of which the property arose took place in this state;
new text end

new text begin (2) the holder is domiciled in a state that does not provide for the custodial taking of the
property, except that if the property is specifically exempt from custodial taking under the
law of the state of the holder's domicile, the property is not subject to the custody of the
administrator; and
new text end

new text begin (3) the last known address of the apparent owner or other person entitled to the property
is unknown or in a state that does not provide for the custodial taking of the property, except
that if the property is specifically exempt from custodial taking under the law of the state
of the last known address, the property is not subject to the custody of the administrator.
new text end

Sec. 6.

new text begin [345A.306] TRAVELER'S CHECK, MONEY ORDER, OR SIMILAR
INSTRUMENT.
new text end

new text begin The administrator may take custody of sums payable on a traveler's check, money order,
or similar instrument presumed abandoned to the extent permissible under United States
Code, title 12, sections 2501 through 2503, as amended.
new text end

Sec. 7.

new text begin [345A.307] BURDEN OF PROOF TO ESTABLISH ADMINISTRATOR'S
RIGHT TO CUSTODY.
new text end

new text begin Subject to this chapter, if the administrator asserts a right to custody of unclaimed
property and there is a dispute concerning such property, the administrator has the initial
burden to prove:
new text end

new text begin (1) the amount of the property;
new text end

new text begin (2) the property is presumed abandoned; and
new text end

new text begin (3) the property is subject to the custody of the administrator.
new text end

ARTICLE 4

UNCLAIMED PROPERTY; REPORT BY HOLDER

Section 1.

new text begin [345A.401] REPORT REQUIRED BY HOLDER.
new text end

new text begin (a) A holder of property presumed abandoned and subject to the custody of the
administrator shall report in a record to the administrator concerning the property. A holder
shall submit an electronic report in a format prescribed by, and acceptable to, the
administrator.
new text end

new text begin (b) A holder may contract with a third party to make the report required under subsection
(a).
new text end

new text begin (c) Whether or not a holder contracts with a third party under subsection (b), the holder
is responsible:
new text end

new text begin (1) to the administrator for the complete, accurate, and timely reporting of property
presumed abandoned; and
new text end

new text begin (2) for paying or delivering to the administrator property described in the report.
new text end

Sec. 2.

new text begin [345A.402] CONTENT OF REPORT.
new text end

new text begin (a) The report required under section 345A.401 must:
new text end

new text begin (1) be signed by or on behalf of the holder and verified as to its completeness and
accuracy;
new text end

new text begin (2) be filed electronically, unless exception is granted, and be in a secure format approved
by the administrator which protects confidential information of the apparent owner;
new text end

new text begin (3) describe the property;
new text end

new text begin (4) except for a traveler's check, money order, or similar instrument, contain the name,
if known, last known address, if known, and Social Security number or taxpayer identification
number, if known or readily ascertainable, of the apparent owner of property with a value
of $50 or more;
new text end

new text begin (5) for an amount held or owing under a life or endowment insurance policy or annuity
contract, contain the name and last known address of the insured, annuitant, or other apparent
owner of the policy or contract and of the beneficiary;
new text end

new text begin (6) for property held in or removed from a safe deposit box, indicate the location of the
property, and where it may be inspected by the administrator;
new text end

new text begin (7) contain the commencement date for determining abandonment under sections
345A.201 to 345A.211;
new text end

new text begin (8) state that the holder has complied with the notice requirements of section 345A.501;
new text end

new text begin (9) identify property that is a nonfreely transferable security and explain why it is a
nonfreely transferable security; and
new text end

new text begin (10) contain other information prescribed by the administrator.
new text end

new text begin (b) A report under section 345A.401 may include in the aggregate items valued under
$50 each. If the report includes items in the aggregate valued under $50 each, the
administrator may not require the holder to provide the name and address of an apparent
owner of an item unless the information is necessary to verify or process a claim in progress
by the apparent owner.
new text end

new text begin (c) A report under section 345A.401 may include personal information as defined in
section 345A.401(a) about the apparent owner or the apparent owner's property.
new text end

new text begin (d) If a holder has changed its name while holding property presumed abandoned or is
a successor to another person that previously held the property for the apparent owner, the
holder must include in the report under section 345A.401 its former name or the name of
the previous holder, if any, and the known name and address of each previous holder of the
property.
new text end

Sec. 3.

new text begin [345A.403] WHEN REPORT TO BE FILED.
new text end

new text begin (a) Except as otherwise provided in subsection (b) and subject to subsection (c), the
report under section 345A.401 must be filed before November 1 of each year and cover the
12 months preceding July 1 of that year.
new text end

new text begin (b) Subject to subsection (c), the report under section 345A.401 to be filed by an insurance
company must be filed before May 1 of each year for the immediately preceding calendar
year.
new text end

new text begin (c) Before the date for filing the report under section 345A.401, the holder of property
presumed abandoned may request the administrator to extend the time for filing. The
administrator may grant an extension. If the extension is granted, the holder may pay or
make a partial payment of the amount the holder estimates ultimately will be due. The
payment or partial payment terminates accrual of interest on the amount paid.
new text end

Sec. 4.

new text begin [345A.404] RETENTION OF RECORDS BY HOLDER.
new text end

new text begin A holder required to file a report under section 345A.401 shall retain records for ten
years after the later of the date the report was filed or the last date a timely report was due
to be filed, unless a shorter period is provided by rule of the administrator. The holder may
satisfy the requirement to retain records under this section through an agent. The records
must contain:
new text end

new text begin (1) the information required to be included in the report;
new text end

new text begin (2) the date, place, and nature of the circumstances that gave rise to the property right;
new text end

new text begin (3) the amount or value of the property;
new text end

new text begin (4) the last known address of the apparent owner, if known to the holder; and
new text end

new text begin (5) if the holder sells, issues, or provides to others for sale or issue in this state traveler's
checks, money orders, or similar instruments, other than third-party bank checks, on which
the holder is directly liable, a record of the instruments while they remain outstanding,
indicating the state and date of issue.
new text end

Sec. 5.

new text begin [345A.405] PROPERTY REPORTABLE AND PAYABLE OR
DELIVERABLE ABSENT OWNER DEMAND.
new text end

new text begin Property is reportable and payable or deliverable under this chapter even if the owner
fails to make demand or present an instrument or document otherwise required to obtain
payment.
new text end

ARTICLE 5

UNCLAIMED PROPERTY; NOTICE TO APPARENT OWNER OF PROPERTY
PRESUMED ABANDONED

Section 1.

new text begin [345A.501] NOTICE TO APPARENT OWNER BY HOLDER.
new text end

new text begin (a) Subject to subsection (b), the holder of property presumed abandoned shall send to
the apparent owner notice by first-class United States mail that complies with section
345A.502 in a format acceptable to the administrator not more than 180 days nor less than
60 days before filing the report under section 345A.401 if:
new text end

new text begin (1) the holder has in its records an address for the apparent owner which the holder's
records do not disclose to be invalid and is sufficient to direct the delivery of first-class
United States mail to the apparent owner; and
new text end

new text begin (2) the value of the property is $50 or more.
new text end

new text begin (b) If an apparent owner has consented to receive e-mail delivery from the holder, the
holder shall send the notice described in subsection (a) both by first-class United States
mail to the apparent owner's last known mailing address and by e-mail, unless the holder
believes that the apparent owner's e-mail address is invalid.
new text end

new text begin (c) The holder of securities presumed abandoned under sections 345A.202, 345A.203,
or 345A.208 shall send the apparent owner notice by certified United States mail that
complies with section 345A.502, and in a format acceptable to the administrator, not less
than 60 days before filing the report under section 345A.401, if:
new text end

new text begin (1) the holder has in its records an address for the apparent owner which the holder's
records do not disclose to be invalid and is sufficient to direct the delivery of United States
mail to the apparent owner; and
new text end

new text begin (2) the value of the property is $1,000 or more.
new text end

new text begin (d) In addition to other indications of an apparent owner's interest in property pursuant
to section 345A.210, a signed return receipt in response to a notice sent pursuant to this
section by certified United States mail shall constitute a record communicated by the apparent
owner to the holder concerning the property or the account in which the property is held.
new text end

Sec. 2.

new text begin [345A.502] CONTENTS OF NOTICE BY HOLDER.
new text end

new text begin (a) Notice under section 345A.501 must contain a heading that reads substantially as
follows: "Notice. The State of Minnesota requires us to notify you that your property may
be transferred to the custody of the commissioner of commerce if you do not contact us
before (insert date that is 30 days after the date of this notice)."
new text end

new text begin (b) The notice under section 345A.501 must:
new text end

new text begin (1) identify the nature and, except for property that does not have a fixed value, the value
of the property that is the subject of the notice;
new text end

new text begin (2) state that the property will be turned over to the administrator;
new text end

new text begin (3) state that after the property is turned over to the administrator an apparent owner
that seeks return of the property must file a claim with the administrator;
new text end

new text begin (4) state that property that is not legal tender of the United States may be sold by the
administrator; and
new text end

new text begin (5) provide instructions that the apparent owner must follow to prevent the holder from
reporting and paying or delivering the property to the administrator.
new text end

Sec. 3.

new text begin [345A.503] NOTICE BY ADMINISTRATOR.
new text end

new text begin (a) The administrator shall give notice to an apparent owner that property presumed
abandoned and that appears to be owned by the apparent owner is held by the administrator
under this chapter.
new text end

new text begin (b) In providing notice under subsection (a), the administrator shall:
new text end

new text begin (1) publish every 12 months in at least one newspaper of general circulation in each
county in this state notice of property held by the administrator which must include:
new text end

new text begin (A) the total value of property received by the administrator during the preceding
12-month period, taken from the reports under section 345A.401;
new text end

new text begin (B) the total value of claims paid by the administrator during the preceding 12-month
period;
new text end

new text begin (C) the Internet address of the unclaimed property website maintained by the
administrator;
new text end

new text begin (D) a telephone number and e-mail address to contact the administrator to inquire about
or claim property; and
new text end

new text begin (E) a statement that a person may access the Internet by a computer to search for
unclaimed property and a computer may be available as a service to the public at a local
public library; and
new text end

new text begin (2) maintain a website or database accessible by the public and electronically searchable
which contains the names reported to the administrator of all apparent owners for whom
property is being held by the administrator. The administrator need not list property on such
website when:
new text end

new text begin (A) no owner name was reported;
new text end

new text begin (B) a claim has been initiated or is pending for the property;
new text end

new text begin (C) the administrator has made direct contact with the apparent owner of the property;
and
new text end

new text begin (D) other instances exist where the administrator reasonably believes exclusion of the
property is in the best interests of both the state and the owner of the property.
new text end

new text begin (c) The website or database maintained under subsection (b)(2) must include instructions
for filing with the administrator a claim to property and a printable claim form with
instructions for its use.
new text end

new text begin (d) In addition to giving notice under subsection (b), publishing the information under
subsection (b)(1), and maintaining the website or database under subsection (b)(2), the
administrator may use other printed publication, telecommunication, the Internet, or other
media to inform the public of the existence of unclaimed property held by the administrator.
new text end

ARTICLE 6

UNCLAIMED PROPERTY; TAKING CUSTODY OF PROPERTY BY
ADMINISTRATOR

Section 1.

new text begin [345A.601] DORMANCY CHARGE.
new text end

new text begin (a) A holder may deduct a dormancy charge from property required to be paid or delivered
to the administrator if:
new text end

new text begin (1) a valid contract between the holder and the apparent owner authorizes imposition of
the charge for the apparent owner's failure to claim the property within a specified time;
and
new text end

new text begin (2) the holder regularly imposes the charge and regularly does not reverse or otherwise
cancel the charge.
new text end

new text begin (b) The amount of the deduction under subsection (a) is limited to an amount that is not
unconscionable considering all relevant factors, including the marginal transactional costs
incurred by the holder in maintaining the apparent owner's property and any services received
by the apparent owner.
new text end

new text begin (c) A holder may not deduct an escheat fee or impose other charges solely by virtue of
property being reported as presumed abandoned.
new text end

Sec. 2.

new text begin [345A.602] PAYMENT OR DELIVERY OF PROPERTY TO
ADMINISTRATOR.
new text end

new text begin (a) Except as otherwise provided in this section, on filing a report under section 345A.401,
the holder shall pay or deliver to the administrator the property described in the report.
new text end

new text begin (b) If property in a report under section 345A.401 is an automatically renewable deposit
and a penalty or forfeiture in the payment of interest would result from paying the deposit
to the administrator at the time of the report, the date for payment of the property to the
administrator is extended until a penalty or forfeiture no longer would result from payment,
if the holder informs the administrator of the extended date.
new text end

new text begin (c) Tangible property in a safe deposit box may not be delivered to the administrator
until 60 days after filing the report under section 345A.401.
new text end

new text begin (d) If property reported to the administrator under section 345A.401 is a security, the
administrator may:
new text end

new text begin (1) make an endorsement, instruction, or entitlement order on behalf of the apparent
owner to invoke the duty of the issuer, its transfer agent, or the securities intermediary to
transfer the security; or
new text end

new text begin (2) dispose of the security under section 345A.702.
new text end

new text begin (e) If the holder of property reported to the administrator under section 345A.401 is the
issuer of a certificated security, the administrator may obtain a replacement certificate in
physical or book-entry form under section 336.8-405. An indemnity bond is not required.
new text end

new text begin (f) The administrator shall establish procedures for the registration, issuance, method
of delivery, transfer, and maintenance of securities delivered to the administrator by a holder.
new text end

new text begin (g) An issuer, holder, and transfer agent or other person acting under this section under
instructions of and on behalf of the issuer or holder is not liable to the apparent owner for,
and must be indemnified by the state against, a claim arising with respect to property after
the property has been delivered to the administrator.
new text end

new text begin (h) A holder is not required to deliver to the administrator a security identified by the
holder as a nonfreely transferable security. If the administrator or holder determines that a
security is no longer a nonfreely transferable security, the holder shall deliver the security
on the next regular date prescribed for delivery of securities under this chapter. The holder
shall make a determination annually whether a security identified in a report filed under
section 345A.401 as a nonfreely transferable security is no longer a nonfreely transferable
security.
new text end

Sec. 3.

new text begin [345A.603] EFFECT OF PAYMENT OR DELIVERY OF PROPERTY TO
ADMINISTRATOR.
new text end

new text begin On payment or delivery of property to the administrator under this chapter, the
administrator, as agent for the state, assumes custody and responsibility for safekeeping the
property. A holder that pays or delivers property to the administrator in good faith and
substantially complies with sections 345A.501 and 345A.502 is relieved of liability which
may arise thereafter with respect to the property so paid or delivered.
new text end

Sec. 4.

new text begin [345A.604] RECOVERY OF PROPERTY BY HOLDERS FROM
ADMINISTRATOR.
new text end

new text begin (a) A holder that under this chapter pays money to the administrator may file a claim
for reimbursement from the administrator of the amount paid if the holder:
new text end

new text begin (1) paid the money in error; or
new text end

new text begin (2) after paying the money to the administrator, paid money to a person the holder
reasonably believed entitled to the money.
new text end

new text begin (b) If a claim for return of property is made, the holder shall include with the claim
evidence sufficient to establish that the apparent owner has claimed the property from the
holder or that the property was delivered by the holder to the administrator in error.
new text end

Sec. 5.

new text begin [345A.605] CREDITING INCOME OR GAIN TO OWNER'S ACCOUNT.
new text end

new text begin If property other than money is delivered to the administrator, the owner is entitled to
receive from the administrator income or gain realized or accrued on the property before
the property is sold. If the property was interest-bearing, the administrator shall pay interest
at the lesser of the rate of the weekly average one-year constant maturity treasury yield, as
published by the Board of Governors of the Federal Reserve System, for the calendar week
preceding the beginning of the fiscal quarter in which the property was sold or the rate the
property earned while in the possession of the holder. Interest begins to accrue when the
property is delivered to the administrator and ends on the earlier of the expiration of ten
years after its delivery or the date on which payment is made to the owner.
new text end

Sec. 6.

new text begin [345A.606] ADMINISTRATOR'S OPTIONS AS TO CUSTODY.
new text end

new text begin (a) The administrator may decline to take custody of property reported under section
345A.401 if the administrator determines that:
new text end

new text begin (1) the property has a value less than the estimated expenses of notice and sale of the
property; or
new text end

new text begin (2) taking custody of the property would be unlawful.
new text end

new text begin (b) A holder may pay or deliver property to the administrator before the property is
presumed abandoned under this chapter if the holder:
new text end

new text begin (1) sends the apparent owner of the property notice required by section 345A.501 and
provides the administrator evidence of the holder's compliance with this paragraph;
new text end

new text begin (2) includes with the payment or delivery a report regarding the property conforming to
section 345A.402; and
new text end

new text begin (3) first obtains the administrator's written consent to accept payment or delivery.
new text end

new text begin (c) A holder's request for the administrator's consent under subsection (b)(3) must be in
a record. If the administrator fails to respond to the request not later than 30 days after
receipt of the request, the administrator is deemed to consent to the payment or delivery of
the property and the payment or delivery is considered to have been made in good faith.
new text end

new text begin (d) On payment or delivery of property under subsection (b), the property is presumed
abandoned.
new text end

Sec. 7.

new text begin [345A.607] DISPOSITION OF PROPERTY HAVING NO SUBSTANTIAL
VALUE; IMMUNITY FROM LIABILITY.
new text end

new text begin (a) If the administrator takes custody of property delivered under this chapter and later
determines that the property has no substantial commercial value or that the cost of disposing
of the property will exceed the value of the property, the administrator may return the
property to the holder or destroy or otherwise dispose of the property.
new text end

new text begin (b) An action or proceeding may not be commenced against the state, an agency of the
state, the administrator, another officer, employee, or agent of the state, or a holder for or
because of an act of the administrator under this section, except for intentional misconduct
or malfeasance.
new text end

Sec. 8.

new text begin [345A.608] PERIODS OF LIMITATION AND REPOSE.
new text end

new text begin (a) Expiration, before, on, or after the effective date of this chapter, of a period of
limitation on an owner's right to receive or recover property, whether specified by contract,
statute, or court order, does not prevent the property from being presumed abandoned or
affect the duty of a holder under this chapter to file a report or pay or deliver property to
the administrator.
new text end

new text begin (b) An action or proceeding may not be maintained by the administrator to enforce this
act's reporting, delivery, or payment requirements more than ten years after the holder
specifically identified the property in a report filed with the administrator, or gave express
notice to the administrator of a dispute regarding the property. In the absence of such a
report or other express notice, the period of limitation is tolled. The period of limitation is
also tolled by filing a fraudulent report.
new text end

ARTICLE 7

UNCLAIMED PROPERTY; SALE OF PROPERTY BY ADMINISTRATOR

Section 1.

new text begin [345A.701] PUBLIC SALE OF PROPERTY.
new text end

new text begin (a) Subject to section 345A.702, not earlier than three years after receipt of property
presumed abandoned, the administrator may sell the property.
new text end

new text begin (b) Before selling property under subsection (a), the administrator shall give notice to
the public of:
new text end

new text begin (1) the date of the sale; and
new text end

new text begin (2) a reasonable description of the property.
new text end

new text begin (c) A sale under subsection (a) must be to the highest bidder:
new text end

new text begin (1) at public sale at a location in this state which the administrator determines to be the
most favorable market for the property;
new text end

new text begin (2) on the Internet; or
new text end

new text begin (3) on another forum the administrator determines is likely to yield the highest net
proceeds of sale.
new text end

new text begin (d) The administrator may decline the highest bid at a sale under this section and reoffer
the property for sale if the administrator determines the highest bid is insufficient.
new text end

new text begin (e) If a sale held under this section is to be conducted other than on the Internet, the
administrator must publish at least one notice of the sale, at least two weeks but not more
than five weeks before the sale, in a newspaper of general circulation in the county in which
the property is sold. For purposes of this subsection, the reasonable description of property
to be sold required by subsection (b) may be satisfied by posting such information on the
administrator's website so long as the newspaper notice includes the website address where
such information is posted.
new text end

Sec. 2.

new text begin [345A.702] DISPOSAL OF SECURITIES.
new text end

new text begin (a) The administrator may not sell or otherwise liquidate a security until one year after
the administrator receives the security, unless requested to do so by the owner of the security
in making a claim for the property.
new text end

new text begin (b) The administrator may not sell a security listed on an established stock exchange for
less than the price prevailing on the exchange at the time of sale. The administrator may
sell a security not listed on an established exchange by any commercially reasonable method.
new text end

Sec. 3.

new text begin [345A.704] PURCHASER OWNS PROPERTY AFTER SALE.
new text end

new text begin A purchaser of property at a sale conducted by the administrator under this chapter takes
the property free of all claims of the owner, a previous holder, or a person claiming through
the owner or holder. The administrator shall execute documents necessary to complete the
transfer of ownership to the purchaser.
new text end

ARTICLE 8

UNCLAIMED PROPERTY; ADMINISTRATION OF PROPERTY

Section 1.

new text begin [345A.801] DEPOSIT OF FUNDS BY ADMINISTRATOR.
new text end

new text begin (a) The administrator shall deposit in the general fund all funds received under this
chapter, including proceeds from the sale of property under sections 345A.701 to 345A.704,
except:
new text end

new text begin (1) expenses of disposition of property delivered to the administrator under this chapter;
new text end

new text begin (2) expenses incurred in examining records of or collecting property from a putative
holder or holder; and
new text end

new text begin (3) as otherwise provided in this chapter.
new text end

Sec. 2.

new text begin [345A.802] ADMINISTRATOR TO RETAIN RECORDS OF PROPERTY.
new text end

new text begin The administrator shall:
new text end

new text begin (1) record and retain the name and last known address of each person shown on a report
filed under section 345A.401 to be the apparent owner of property delivered to the
administrator;
new text end

new text begin (2) record and retain the name and last known address of each insured or annuitant and
beneficiary shown on the report;
new text end

new text begin (3) for each policy of insurance or annuity contract listed in the report of an insurance
company, record and retain the policy or account number, the name of the company, and
the amount due or paid; and
new text end

new text begin (4) for each apparent owner listed in the report, record and retain the name of the holder
that filed the report and the amount due or paid.
new text end

ARTICLE 9

UNCLAIMED PROPERTY; CONFIDENTIALITY AND SECURITY OF
INFORMATION

Section 1.

new text begin [345A.901] DATA PRACTICES.
new text end

new text begin (a) All working papers, recorded information, documents, and copies thereof produced
by, obtained by, or disclosed to the administrator or the administrator's agent in the course
of an examination made under this chapter are classified private or nonpublic for purposes
of the Minnesota Government Data Practices Act, Minnesota Statutes, chapter 13, are not
subject to subpoena, and may only be disclosed to:
new text end

new text begin (1) the extent required or permitted by law to report upon or take special action regarding
compliance and delivery of unclaimed property, or ordered by a court of law to testify or
produce evidence in a civil or criminal proceeding;
new text end

new text begin (2) another department or agency of this state or the United States;
new text end

new text begin (3) the person that administers the unclaimed property law of another state, if the other
state accords substantially reciprocal privileges to the administrator of this state and maintains
the confidentiality and security of information obtained in a substantially equivalent manner;
new text end

new text begin (4) a person subject to an examination as required by this chapter; and
new text end

new text begin (5) the auditor or administrator of a joint examination conducted with another state, the
United States, a foreign country or subordinate unit of a foreign country, or any other
governmental entity if the governmental entity conducting the examination maintains the
confidentiality and security of information in a substantially equivalent manner.
new text end

new text begin (b) All personal information derived or otherwise obtained by or communicated to the
administrator or the administrator's agent from a person making a claim for personal property
are classified private or nonpublic for purposes of the Minnesota Government Data Practices
Act, Minnesota Statutes, chapter 13, and may not be made public by the administrator or
the administrator's agent, except to:
new text end

new text begin (1) the subject, or the subject's personal representative, attorney, other legal representative,
heir, or agent designated to have the information;
new text end

new text begin (2) the personal representative of an estate, other legal representative, agent designated
by a deceased apparent owner, or a person entitled to inherit from a deceased apparent
owner;
new text end

new text begin (3) another department or agency of this state or the United States; and
new text end

new text begin (4) the extent required or permitted by law or ordered by a court of law to testify or
produce evidence in a civil or criminal proceeding.
new text end

new text begin (c) Except as otherwise provided by law, the administrator shall include on its website
or in the database required by section 345A.503(b)(2) the name of each apparent owner of
property held by the administrator. The administrator may include in published notices,
printed publications, telecommunications, the Internet, or other media and on the website
or in the database additional information concerning the apparent owner's property if the
administrator believes the information will assist in identifying and returning property to
the owner and does not disclose personal information except the home or physical address
of an apparent owner.
new text end

ARTICLE 10

UNCLAIMED PROPERTY; HEARINGS, PROCEDURE, AND JUDICIAL REVIEW

Section 1.

Minnesota Statutes 2018, section 345.515, is amended to read:

345.515 AGREEMENTS TO LOCATE REPORTED PROPERTY.

It is unlawful for a person to seek or receive from another person or contract with a
person for a fee or compensation for locating property, deleted text begin knowing it to have been reported or
paid or delivered to the commissioner pursuant to chapter 345 deleted text end prior to 24 months after the
date the property is paid or delivered to the deleted text begin commissioner deleted text end new text begin administrator new text end .

deleted text begin No deleted text end new text begin An new text end agreement deleted text begin entered into after 24 months after the date the property is paid or
delivered to the commissioner deleted text end is valid new text begin only new text end if deleted text begin a person thereby undertakes to locate property
included in a report for a fee or other compensation exceeding ten percent of the value of
the recoverable property unless deleted text end the agreement is in writing deleted text begin and deleted text end new text begin , is new text end signed by the owner deleted text begin and deleted text end new text begin , new text end
discloses the nature and value of the property and the name and address of the holder thereof
as such facts have been reported new text begin , and provides for compensation in an amount that is no
more than 15 percent of the amount collected new text end . Nothing in this section shall be construed to
prevent an owner from asserting at any time that an agreement to locate property is based
upon an excessive or unjust consideration.

Sec. 2.

Minnesota Statutes 2018, section 345.53, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Commissioner's deleted text end new text begin Administrator's new text end duties.

new text begin (a) new text end The deleted text begin commissioner deleted text end new text begin
administrator or the administrator's agent new text end may at reasonable times and upon reasonable
notice examine the records of any person new text begin , including examination of appropriate records in
the possession of an agent of the person under examination, new text end if deleted text begin there is reason to believe that
the person has failed to report property that should have been reported pursuant to sections
345.31 to 345.60. deleted text end new text begin the records are reasonably necessary to determine whether the person has
complied with this chapter. The administrator may issue an administrative subpoena requiring
the person or agent of the person to make records available for examination, and bring an
action seeking judicial enforcement of the subpoena, as well as impose penalties under
section 345.55.
new text end

new text begin (b) The administrator may contract with a person to conduct an examination under this
chapter. The contract shall be awarded pursuant to a request for proposals issued in
compliance with the state procurement rules.
new text end

new text begin (1) If the administrator contracts with a person under this subsection, the contract may
provide for compensation of the person based on a fixed fee, hourly fee, or contingent fee.
new text end

new text begin (2) A contract under subsection (b) is public data.
new text end

new text begin (c) If the administrator conducts an examination under subsection (a), each person under
examination shall pay an examination fee upon the request of the administrator and to be
based on the salary cost of examiners or assistants, and at such an average rate per day or
fraction thereof so as to provide for the total cost of such examinations. In no case may the
charges exceed the value of the property found to be reportable and deliverable.
new text end

new text begin (d) All data gathered in the course of an examination or audit of a holder or purported
holder under this chapter is classified as private or nonpublic information under the Minnesota
Government Data Practices Act, Minnesota Statutes, chapter 13, except as set forth in section
(b)(2) and except that such data may be disclosed as follows:
new text end

new text begin (1) to the extent required or permitted by law to report upon or take special action
regarding compliance and delivery of unclaimed property, or ordered by a court of law;
new text end

new text begin (2) to another department or agency of this state or the United States;
new text end

new text begin (3) to the person that administers the unclaimed property law of another state, if the
other state accords substantially reciprocal privileges to the administrator of this state, and
maintains the confidentiality and security of information by law or by agreement in a
substantially equivalent manner;
new text end

new text begin (4) to a person subject to an examination as required by this chapter; and
new text end

new text begin (5) to the auditor or administrator of a joint examination conducted with another state,
the United States, a foreign country or subordinate unit of a foreign country, or any other
governmental entity if the governmental entity conducting the examination maintains the
confidentiality and security of information by law or by agreement in a substantially
equivalent manner.
new text end

Sec. 3.

Minnesota Statutes 2018, section 345.53, is amended by adding a subdivision to
read:

new text begin Subd. 3. new text end

new text begin Failure of person examined to retain records. new text end

new text begin If a person subject to
examination under this chapter does not retain the records required by section 345A.404,
the administrator may determine the value of property due using a reasonable method of
estimation based on all information available to the administrator, including extrapolation
and use of statistical sampling when appropriate and necessary. A payment made based on
estimation under this section is a penalty for failure to maintain the records required by
section 345A.404, and does not relieve a person from an obligation to report and deliver
property to a state in which the holder is domiciled.
new text end

Sec. 4.

new text begin [345A.950] HEARINGS, PROCEDURE, JUDICIAL REVIEW.
new text end

new text begin (a) Any person aggrieved by a decision of the administrator under this chapter as it
relates to holder examinations may, within 21 days after that decision, make a written request
to the administrator for a hearing pursuant to this article to determine whether the decision
complies with the requirements of this chapter.
new text end

new text begin (b) Any person aggrieved by a decision of the administrator under this chapter as it
relates to claims of ownership of unclaimed property may, within 21 days after that decision
or within 180 days from the filing of the claim if the administrator fails to act on a claim,
make a written request to the administrator for a hearing pursuant to this article to determine
whether the decision complies with the requirements of this chapter.
new text end

new text begin (c) At the administrator's discretion, a hearing may be based upon written submissions,
and nothing contained in this section requires the observance of formal rules of pleading or
evidence.
new text end

new text begin (d) The administrator shall commence a hearing within 45 days after receipt of the
request and shall give not less than 15 days' written notice of the hearing. Within 30 days
after the hearing, the administrator shall affirm, reverse, or modify the previous action and
specify the reasons for that decision in writing.
new text end

new text begin (e) An order or decision of the administrator is a final decision subject to appeal in
accordance with chapter 14.
new text end

Sec. 5. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2018, section 345.53, subdivision 2, new text end new text begin is repealed.
new text end

ARTICLE 11

APPROPRIATION

Sec. 1. new text begin UNCLAIMED PROPERTY COMPLIANCE.
new text end

new text begin $384,000 in fiscal year 2020 and $384,000 in fiscal year 2021 are appropriated from the
general fund to the commissioner of commerce for additional compliance efforts with respect
to unclaimed property. The commissioner may issue contracts for these services.
new text end

APPENDIX

Repealed Minnesota Statutes: H2538-1

345.53 EXAMINATION OF RECORDS.

Subd. 2.

Examination charges.

If an examination of the records of a person results in the disclosure of property reportable and deliverable under sections 345.31 to 345.60, the commissioner may assess the cost of the examination against the holder at the rate of $15 per hour per examiner, but in no case may the charges exceed the value of the property found to be reportable and deliverable.