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Minnesota Legislature

Office of the Revisor of Statutes

HF 1608

as introduced - 90th Legislature (2017 - 2018) Posted on 02/23/2017 01:23pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to commerce; regulating unclaimed property; enacting the Revised Uniform
Unclaimed Property Act recommended for enactment by the states by the National
Conference of Commissioners on Uniform State Laws; proposing coding for new
law in Minnesota Statutes, chapter 345; proposing coding for new law as Minnesota
Statutes, chapter 345A.

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

ARTICLE 1

GENERAL PROVISIONS

Section 1.

new text begin [345A.101] SHORT TITLE.
new text end

new text begin This chapter may be cited as the Revised Uniform Unclaimed Property Act.
new text end

Sec. 2.

new text begin [345A.102] DEFINITIONS.
new text end

new text begin In this chapter:
new text end

new text begin (1) "Administrator" means the commissioner of commerce.
new text end

new text begin (2) "Administrator's agent" means a person with which the administrator contracts to
conduct an examination under article 10 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 (3) "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 (4) "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 (5) "Confidential information" means records, reports, and information that are
confidential under section 345A.1402.
new text end

new text begin (6) "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 (7) "Electronic" means relating to technology having electrical, digital, magnetic, wireless,
optical, electromagnetic, or similar capabilities.
new text end

new text begin (8) "Electronic 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 (9) "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 (10) "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 (I) points sometimes referred to as gems, tokens, gold, and similar names; and
new text end

new text begin (II) 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 (I) money; or
new text end

new text begin (II) goods or services that have more than minimal value; or
new text end

new text begin (ii) otherwise monetizes for use outside a game or platform.
new text end

new text begin (11) "Gift card" means:
new text end

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

new text begin (i) the value of which does not expire;
new text end

new text begin (ii) that may be decreased in value only by redemption for merchandise, goods, or
services; and
new text end

new text begin (iii) 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 (12) "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 (13) "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 (14) "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.
The term does not include a record that may be redeemed for money or otherwise monetized
by the issuer.
new text end

new text begin (15) "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 (16) "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. The term 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 (17) "Money order" means a payment order for a specified amount of money. The term
includes an express money order and a personal money order on which the remitter is the
purchaser.
new text end

new text begin (18) "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 (19) "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 (20) "Non-freely 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. The term includes a worthless security.
new text end

new text begin (21) "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. The term 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 (22) "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 (23) "Person" means an individual, estate, business association, public corporation,
government or governmental subdivision, agency, or instrumentality, or other legal entity.
new text end

new text begin (24) "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. The term:
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, or a 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 (I) a worthless security; or
new text end

new text begin (II) 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) an in-store credit for returned merchandise; or
new text end

new text begin (v) a gift card.
new text end

new text begin (25) "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 (26) "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.
new text end

new text begin (27) "Security" means:
new text end

new text begin (A) a security as defined in section 336.8-102;
new text end

new text begin (B) a security entitlement as defined in 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 (28) "Sign" means, with present intent to authenticate or adopt a record:
new text end

new text begin (A) to execute or adopt a tangible symbol; or
new text end

new text begin (B) to attach to or logically associate with the record an electronic symbol, sound, or
process.
new text end

new text begin (29) "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 (30) "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. The term:
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 gift card and 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 (31) "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 (32) "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. The term 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 (33) "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. 3.

new text begin [345A.103] 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

Sec. 4.

new text begin [345A.104] RULEMAKING.
new text end

new text begin The administrator may adopt under chapter 14 rules to implement and administer this
chapter.
new text end

ARTICLE 2

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

new text begin (5) a payroll card or demand, savings, or time deposit, including a deposit that is
automatically renewable, three years after the maturity of the deposit, except a deposit that
is automatically renewable is deemed matured on its initial date of maturity unless the
apparent owner consented in a record on file with the holder to renewal at or about the time
of the renewal;
new text end

new text begin (6) 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 (7) 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, three years
after the earlier of the date:
new text end

new text begin (i) the insurance company has knowledge of the death of the insured; or
new text end

new text begin (ii) the insured has attained, or would have attained if living, the limiting age under the
mortality table on 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
the insurance company has knowledge of the death of the annuitant.
new text end

new text begin (8) property distributable by a business association in the course of dissolution, one year
after the property becomes distributable;
new text end

new text begin (9) property held by a court, including property received as proceeds of a class action,
one year after the property becomes distributable;
new text end

new text begin (10) 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 (11) wages, commissions, bonuses, or reimbursements to which an employee is entitled,
or other compensation for personal services, other than amounts held in a payroll card, one
year after the amount becomes payable;
new text end

new text begin (12) 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 (13) 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

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 three years after the later of:
new text end

new text begin (1) the following dates:
new text end

new text begin (A) except as in subparagraph (B), the date a second consecutive 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 the second communication is sent later than 30 days after the date the first
communication is returned undelivered, the date the first 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) the date the apparent owner becomes 70.5 years of age, if determinable by the holder;
or
new text end

new text begin (B) if the Internal Revenue Code, as amended, United States Code, title 26, section 1 et
seq., requires distribution to avoid a tax penalty, two years after the date 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
electronic-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
electronic-mail communication or the holder believes that the apparent owner's
electronic-mail address in the holder's records is not valid;
new text end

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

new text begin (3) the apparent owner does not respond to the electronic-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 second consecutive 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 the second communication is sent later than 30 days after the date the first
communication is returned undelivered, the date the first 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 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

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 second consecutive 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 second communication is sent later than 30 days after the date the first
communication is returned undelivered, the date the first 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 electronic-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 electronic-mail
communication or the holder believes that the custodian's electronic-mail address in the
holder's records is not valid;
new text end

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

new text begin (3) the custodian does not respond to the electronic-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 second consecutive 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 box; or
new text end

new text begin (2) earliest date when the lessor of the box is authorized by law of this state other than
this chapter to enter the 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

Sec. 7.

new text begin [345A.207] WHEN GIFT CARD PRESUMED ABANDONED.
new text end

new text begin Subject to section 345A.210, a gift card is presumed abandoned if it is unclaimed by the
apparent owner five years after the later of the date of purchase or its most recent use.
new text end

Sec. 8.

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 three years after:
new text end

new text begin (1) the date a second consecutive 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 (2) if the second communication is made later than 30 days after the first communication
is returned, the date the first communication is returned undelivered to the holder by the
United States Postal Service.
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 electronic-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
electronic-mail communication or the holder believes that the apparent owner's
electronic-mail address in the holder's records is not valid;
new text end

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

new text begin (3) the apparent owner does not respond to the electronic-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 three
years after the date the mail is returned.
new text end

Sec. 9.

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. 10.

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
of:
new text end

new text begin (1) the date the property is presumed abandoned under this article; 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, including
an automatic deposit or withdrawal previously authorized by the apparent owner other than
an automatic reinvestment of dividends or interest;
new text end

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

new text begin (7) any other action by the apparent owner which reasonably demonstrates to the holder
that the apparent owner knows that the property exists.
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

Sec. 11.

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" 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) due diligence, performed as required under [insert citation to applicable state law or
regulations relating to the business of insurance] to maintain contact with the insured or
annuitant or determine whether the insured or annuitant has died, 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 death master file
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;
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 article 10 between a death master
file 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 the company validates the
death; or
new text end

new text begin (5) the company:
new text end

new text begin (A) receives notice of the death of the insured or annuitant from an administrator,
beneficiary, policy owner, relative of the insured, or trustee or from a personal representative,
executor, or other legal representative of the insured's or annuitant's estate; and
new text end

new text begin (B) validates the death of the insured or annuitant.
new text end

new text begin (c) The following rules apply under this section:
new text end

new text begin (1) A death master file match under subsection (b)(3) or (4) occurs if the criteria for an
exact or partial match are satisfied as provided by:
new text end

new text begin (A) law of this state other than this chapter;
new text end

new text begin (B) a rule or policy adopted by the commissioner of commerce; or
new text end

new text begin (C) absent a law, rule, or policy under subparagraph (A) or (B) standards in the National
Conference of Insurance Legislators' "Model Unclaimed Life Insurance Benefits Act" as
published in 2014.
new text end

new text begin (2) The death master file 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 (3) The death master file 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 (4) If no provision in chapter 61A which establishes a time for validation of a death of
an insured or annuitant, the insurance company shall make a good faith effort using other
available records and information to validate the death and document the effort taken not
later than 90 days after the insurance company has notice of the death.
new text end

new text begin (d) 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 death master file 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. 12.

new text begin [345A.212] 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

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 this article, 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 in subsection (b), if records of a holder reflect multiple addresses for an
apparent owner and this state is the state of the most recently recorded 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 most recently recorded 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 SATE.
new text end

new text begin (a) Except as 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 or is this 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 or the 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 in section 345A.302, 345A.303, or 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 If the administrator asserts a right to custody of unclaimed property, the administrator
has the burden to prove:
new text end

new text begin (1) the existence and 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

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. The
administrator may not require a holder to file a paper report.
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) if filed electronically, be in a secure format approved by the administrator which
protects confidential information of the apparent owner in the same manner as required of
the administrator and the administrator's agent under article 14;
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, where it may be inspected by the administrator, and any amounts owed to the
holder under section 345A.606;
new text end

new text begin (7) contain the commencement date for determining abandonment under article 2;
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 non-freely transferable security and explain why it is a
non-freely transferable security; and
new text end

new text begin (10) contain other information the administrator prescribes by rules.
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.1401(a) about the apparent owner or the apparent owner's property to the
extent not otherwise prohibited by federal law.
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 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

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 electronic-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 electronic mail,
unless the holder believes that the apparent owner's electronic-mail address is invalid.
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 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) except as otherwise provided in paragraph (2), send written notice by first-class
United States mail to each apparent owner of property valued at $50 or more held by the
administrator, unless the administrator determines that a mailing by first-class United States
mail would not be received by the apparent owner, and, in the case of a security held in an
account for which the apparent owner had consented to receiving electronic mail from the
holder, send notice by electronic mail if the electronic-mail address of the apparent owner
is known to the administrator instead of by first-class United States mail; or
new text end

new text begin (2) send the notice to the apparent owner's electronic-mail address if the administrator
does not have a valid United States mail address for an apparent owner, but has an
electronic-mail address that the administrator does not know to be invalid.
new text end

new text begin (c) In addition to the notice under subsection (b), the administrator shall:
new text end

new text begin (1) publish every six 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
six-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 six-month
period;
new text end

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

new text begin (D) a telephone number and electronic-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 Web site 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.
new text end

new text begin (d) The Web site or database maintained under subsection (c)(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 (e) In addition to giving notice under subsection (b), publishing the information under
subsection (c)(1) and maintaining the Web site or database under subsection (c)(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

Sec. 4.

new text begin [345A.504] COOPERATION AMONG STATE OFFICERS AND AGENCIES
TO LOCATE APPARENT OWNER.
new text end

new text begin Unless prohibited by law of this state other than this chapter, on request of the
administrator, each officer, agency, board, commission, division, and department of this
state, any body politic and corporate created by this state for a public purpose, and each
political subdivision of this state shall make its books and records available to the
administrator and cooperate with the administrator to determine the current address of an
apparent owner of property held by the administrator under this chapter.
new text end

ARTICLE 6

TAKING CUSTODY OF PROPERTY BY ADMINISTRATOR

Section 1.

new text begin [345A.601] DEFINITION OF GOOD FAITH.
new text end

new text begin In this article, payment or delivery of property is made in good faith if a holder:
new text end

new text begin (1) had a reasonable basis for believing, based on the facts then known, that the property
was required or permitted to be paid or delivered to the administrator under this chapter; or
new text end

new text begin (2) made payment or delivery:
new text end

new text begin (A) in response to a demand by the administrator or administrator's agent; or
new text end

new text begin (B) under a guidance or ruling issued by the administrator which the holder reasonably
believed required or permitted the property to be paid or delivered.
new text end

Sec. 2.

new text begin [345A.602] 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

Sec. 3.

new text begin [345A.603] 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 120 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 non-freely transferable security. If the administrator or holder determines that
a security is no longer a non-freely 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 non-freely transferable security is no longer a non-freely transferable
security.
new text end

Sec. 4.

new text begin [345A.604] EFFECT OF PAYMENT OR DELIVERY OF PROPERTY TO
ADMINISTRATOR.
new text end

new text begin (a) 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 arising
thereafter with respect to payment or delivery of the property to the administrator.
new text end

new text begin (b) This state shall defend and indemnify a holder against liability on a claim against
the holder resulting from the payment or delivery of property to the administrator made in
good faith and after the holder substantially complied with sections 345A.501 and 345A.502.
new text end

Sec. 5.

new text begin [345A.605] RECOVERY OF PROPERTY BY HOLDER 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 reimbursement under subsection (a) is made for a payment made on a
negotiable instrument, including a traveler's check, money order, or similar instrument, the
holder must submit proof that the instrument was presented and payment was made to a
person the holder reasonably believed entitled to payment. The holder may claim
reimbursement even if the payment was made to a person whose claim was made after
expiration of a period of limitation on the owner's right to receive or recover property,
whether specified by contract, statute, or court order.
new text end

new text begin (c) If a holder is reimbursed by the administrator under subsection (a)(2), the holder
may also recover from the administrator income or gain under section 345A.607 that would
have been paid to the owner if the money had been claimed from the administrator by the
owner to the extent the income or gain was paid by the holder to the owner.
new text end

new text begin (d) A holder that under this chapter delivers property other than money to the
administrator may file a claim for return of the property from the administrator if:
new text end

new text begin (1) the holder delivered the property in error; or
new text end

new text begin (2) the apparent owner has claimed the property from the holder.
new text end

new text begin (e) If a claim for return of property under subsection (d) 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

new text begin (f) The administrator may determine that an affidavit submitted by a holder is evidence
sufficient to establish that the holder is entitled to reimbursement or to recover property
under this section.
new text end

new text begin (g) A holder is not required to pay a fee or other charge for reimbursement or return of
property under this section.
new text end

new text begin (h) Not later than 90 days after a claim is filed under subsection (a) or (d), the
administrator shall allow or deny the claim and give the claimant notice of the decision in
a record. If the administrator does not take action on a claim during the 90 day period, the
claim is deemed denied.
new text end

new text begin (i) The claimant may initiate a proceeding under chapter 14 for review of the
administrator's decision or the deemed denial under subsection (h) not later than:
new text end

new text begin (1) 30 days following receipt of the notice of the administrator's decision; or
new text end

new text begin (2) 120 days following the filing of a claim under subsection (a) or (d) in the case of a
deemed denial under subsection (h).
new text end

new text begin (j) A final decision in an administrative proceeding initiated under subsection (i) is
subject to judicial review by the court as a matter of right in a de novo proceeding on the
record in which either party is entitled to introduce evidence as a supplement to the record.
new text end

Sec. 6.

new text begin [345A.606] PROPERTY REMOVED FROM SAFE-DEPOSIT BOX.
new text end

new text begin Property removed from a safe-deposit box and delivered under this chapter to the
administrator under this chapter is subject to the holder's right to reimbursement for the cost
of opening the box and a lien or contract providing reimbursement to the holder for unpaid
rent charges for the box. The administrator shall reimburse the holder from the proceeds
remaining after deducting the expense incurred by the administrator in selling the property.
new text end

Sec. 7.

new text begin [345A.607] CREDITING INCOME OR GAIN TO OWNER'S ACCOUNT.
new text end

new text begin (a) 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 an interest-bearing demand, savings, or time deposit,
the administrator shall pay interest at the lesser of the rate of six percent 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

new text begin (b) Interest on interest-bearing property is not payable under this section for any period
before the effective date of this chapter, unless authorized by ........
new text end

Sec. 8.

new text begin [345A.608] 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 consent in a record 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. 9.

new text begin [345A.609] 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. 10.

new text begin [345A.610] 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) The administrator may not commence an action or proceeding to enforce this chapter
with respect to the reporting, payment, or delivery of property more than five years after
the holder filed a nonfraudulent report under section 345A.401 with the administrator. The
parties may agree in a record to extend the limitation in this subsection.
new text end

new text begin (c) The administrator may not commence an action, proceeding, or examination with
respect to a duty of a holder under this chapter more than ten years after the duty arose.
new text end

ARTICLE 7

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 three 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.
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 three years after
the administrator receives the security and gives the apparent owner notice under section
345A.503 that the administrator holds the security.
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.703] RECOVERY OF SECURITIES OR VALUE BY OWNER.
new text end

new text begin (a) If the administrator sells a security before the expiration of six years after delivery
of the security to the administrator, an apparent owner that files a valid claim under this
chapter of ownership of the security before the six-year period expires is entitled, at the
option of the administrator, to receive:
new text end

new text begin (1) replacement of the security; or
new text end

new text begin (2) the market value of the security at the time the claim is filed, plus dividends, interest,
and other increments on the security up to the time the claim is paid.
new text end

new text begin (b) Replacement of the security or calculation of market value under subsection (a) must
take into account a stock split, reverse stock split, stock dividend, or similar corporate action.
new text end

new text begin (c) A person that makes a valid claim under this chapter of ownership of a security after
expiration of six years after delivery of the security to the administrator is entitled to receive:
new text end

new text begin (1) the security the holder delivered to the administrator, if it is in the custody of the
administrator, plus dividends, interest, and other increments on the security up to the time
the administrator delivers the security to the person; or
new text end

new text begin (2) the net proceeds of the sale of the security, plus dividends, interest, and other
increments on the security up to the time the security was sold.
new text end

Sec. 4.

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

Sec. 5.

new text begin [345A.705] MILITARY MEDAL OR DECORATION.
new text end

new text begin (a) The administrator may not sell a medal or decoration awarded for military service
in the armed forces of the United States.
new text end

new text begin (b) The administrator, with the consent of the respective organization under paragraph
(1), agency under paragraph (2), or entity under paragraph (3), may deliver a medal or
decoration described in subsection (a) to be held in custody for the owner, to:
new text end

new text begin (1) a military veterans organization qualified under the Internal Revenue Code, as
amended, Unites States Code, title 26, section 501(c)(19);
new text end

new text begin (2) the agency that awarded the medal or decoration; or
new text end

new text begin (3) a governmental entity.
new text end

new text begin (c) On delivery under subsection (b), the administrator is not responsible for safekeeping
the medal or decoration.
new text end

ARTICLE 8

ADMINISTRATION OF PROPERTY

Section 1.

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

new text begin (a) Except as otherwise provided in this section, the administrator shall deposit in the
general fund all funds received under this chapter, including proceeds from the sale of
property under article 7.
new text end

new text begin (b) The administrator shall maintain an account with an amount of funds the administrator
reasonably estimates is sufficient to pay claims allowed under this chapter in each fiscal
year. If the aggregate amount of claims by owners allowed at any time exceeds the amount
held in the account, an excess claim must be paid out of the general funds.
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

Sec. 3.

new text begin [345A.803] EXPENSES AND SERVICE CHARGES OF ADMINISTRATOR.
new text end

new text begin Before making a deposit of funds received under this chapter to the general fund, the
administrator may deduct:
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) costs of mailing and publication in connection with property delivered to the
administrator under this chapter;
new text end

new text begin (3) reasonable service charges; and
new text end

new text begin (4) expenses incurred in examining records of or collecting property from a putative
holder or holder.
new text end

Sec. 4.

new text begin [345A.804] ADMINISTRATOR HOLDS PROPERTY AS CUSTODIAN FOR
OWNER.
new text end

new text begin Property received by the administrator under this chapter is held in custody for the benefit
of the owner and is not owned by the state.
new text end

ARTICLE 9

CLAIM TO RECOVER PROPERTY FROM ADMINISTRATOR

Section 1.

new text begin [345A.901] CLAIM OF ANOTHER STATE TO RECOVER PROPERTY.
new text end

new text begin (a) If the administrator knows that property held by the administrator under this chapter
is subject to a superior claim of another state, the administrator shall:
new text end

new text begin (1) report and pay or deliver the property to the other state; or
new text end

new text begin (2) return the property to the holder so that the holder may pay or deliver the property
to the other state.
new text end

new text begin (b) The administrator is not required to enter into an agreement to transfer property to
the other state under subsection (a).
new text end

Sec. 2.

new text begin [345A.902] WHEN PROPERTY SUBJECT TO RECOVERY BY ANOTHER
STATE.
new text end

new text begin (a) Property held under this chapter by the administrator is subject to the right of another
state to take custody of the property if:
new text end

new text begin (1) the property was paid or delivered to the administrator because the records of the
holder did not reflect a last-known address in the other state of the apparent owner and:
new text end

new text begin (A) the other state establishes that the last-known address of the apparent owner or other
person entitled to the property was in the other state; or
new text end

new text begin (B) under the law of the other state, the property has become subject to a claim by the
other state of abandonment;
new text end

new text begin (2) the records of the holder did not accurately identify the owner of the property, the
last-known address of the owner was in another state, and, under the law of the other state,
the property has become subject to a claim by the other state of abandonment;
new text end

new text begin (3) the property was subject to the custody of the administrator of this state under section
345A.305 and, under the law of the state of domicile of the holder, the property has become
subject to a claim by the state of domicile of the holder of abandonment; or
new text end

new text begin (4) the property:
new text end

new text begin (A) is a sum payable on a traveler's check, money order, or similar instrument that was
purchased in the other state and delivered to the administrator under section 345A.306; and
new text end

new text begin (B) under the law of the other state, has become subject to a claim by the other state of
abandonment.
new text end

new text begin (b) A claim by another state to recover property under this section must be presented in
a form prescribed by the administrator, unless the administrator waives presentation of the
form.
new text end

new text begin (c) The administrator shall decide a claim under this section not later than 90 days after
it is presented. If the administrator determines that the other state is entitled under subsection
(a) to custody of the property, the administrator shall allow the claim and pay or deliver the
property to the other state.
new text end

new text begin (d) The administrator may require another state, before recovering property under this
section, to agree to indemnify this state and its agents, officers and employees against any
liability on a claim to the property.
new text end

Sec. 3.

new text begin [345A.903] CLAIM FOR PROPERTY BY PERSON CLAIMING TO BE
OWNER.
new text end

new text begin (a) A person claiming to be the owner of property held under this chapter by the
administrator may file a claim for the property on a form prescribed by the administrator.
The claimant must verify the claim as to its completeness and accuracy.
new text end

new text begin (b) The administrator may waive the requirement in subsection (a) and may pay or
deliver property directly to a person if:
new text end

new text begin (1) the person receiving the property or payment is shown to be the apparent owner
included on a report filed under section 345A.401;
new text end

new text begin (2) the administrator reasonably believes the person is entitled to receive the property
or payment; and
new text end

new text begin (3) the property has a value of less than $250.
new text end

Sec. 4.

new text begin [345A.904] WHEN ADMINISTRATOR MUST HONOR CLAIM FOR
PROPERTY.
new text end

new text begin (a) The administrator shall pay or deliver property to a claimant under section
345A.903(a) if the administrator receives evidence sufficient to establish to the satisfaction
of the administrator that the claimant is the owner of the property.
new text end

new text begin (b) Not later than 90 days after a claim is filed under section 345A.903(a), the
administrator shall allow or deny the claim and give the claimant notice in a record of the
decision.
new text end

new text begin (c) If the claim is denied under subsection (b):
new text end

new text begin (1) the administrator shall inform the claimant of the reason for the denial and specify
what additional evidence, if any, is required for the claim to be allowed;
new text end

new text begin (2) the claimant may file an amended claim with the administrator or commence an
action under section 345A.906; and
new text end

new text begin (3) the administrator shall consider an amended claim filed under paragraph (2) as an
initial claim.
new text end

new text begin (d) If the administrator does not take action on a claim during the 90-day period following
the filing of a claim under section 345A.903(a), the claim is deemed denied.
new text end

Sec. 5.

new text begin [345A.905] ALLOWANCE OF CLAIM FOR PROPERTY.
new text end

new text begin (a) Not later than 30 days after a claim is allowed under section 345A.904(b), the
administrator shall pay or deliver to the owner the property or pay to the owner the net
proceeds of a sale of the property, together with income or gain to which the owner is entitled
under section 345A.607. On request of the owner, the administrator may sell or liquidate a
security and pay the net proceeds to the owner, even if the security had been held by the
administrator for less than three years or the administrator has not complied with the notice
requirements under section 345A.702.
new text end

new text begin (b) Property held under this chapter by the administrator is subject to a claim for the
payment of an enforceable debt the owner owes in this state for:
new text end

new text begin (1) child-support arrearages, including child-support collection costs and child-support
arrearages that are combined with maintenance;
new text end

new text begin (2) a civil or criminal fine or penalty, court costs, a surcharge, or restitution imposed by
a final order of an administrative agency or a final court judgment; or
new text end

new text begin (3) state taxes, penalties, and interest that have been determined to be delinquent or as
to which notice has been recorded with the secretary of state.
new text end

new text begin (c) Before delivery or payment to an owner under subsection (a) of property or payment
to the owner of net proceeds of a sale of the property, the administrator first shall apply the
property or net proceeds to a debt under subsection (b) the administrator determines is owed
by the owner. The administrator shall pay the amount to the appropriate state agency and
notify the owner of the payment.
new text end

new text begin (d) The administrator may make periodic inquiries of state and local agencies in the
absence of a claim filed under section 345A.903 to determine whether an apparent owner
included in the unclaimed-property records of this state have enforceable debts described
in subsection (b). The administrator first shall apply the property or net proceeds of a sale
of property held by the administrator to a debt under subsection (b) of an apparent owner
which appears in the records of the administrator and deliver the amount to the appropriate
state agency. The administrator shall notify the apparent owner of the payment.
new text end

Sec. 6.

new text begin [345A.906] ACTION BY PERSON WHOSE CLAIM IS DENIED.
new text end

new text begin Not later than one year after filing a claim under section 345A.903(a), the claimant may
commence an action against the administrator in the district court to establish a claim that
has been denied or deemed denied under section 345A.904(d). On final determination of
the action, the court may, on application, award to the prevailing party its reasonable
attorney's fees, costs, and expenses of litigation.
new text end

ARTICLE 10

VERIFIED REPORT OF PROPERTY; EXAMINATION OF RECORDS

Section 1.

new text begin [345.1001] VERIFIED REPORT OF PROPERTY.
new text end

new text begin If a person does not file a report required by section 345A.401 or the administrator
believes that a person may have filed an inaccurate, incomplete, or false report, the
administrator may require the person to file a verified report in a form prescribed by the
administrator. The verified report must:
new text end

new text begin (1) state whether the person is holding property reportable under this chapter;
new text end

new text begin (2) describe property not previously reported or about which the administrator has
inquired;
new text end

new text begin (3) specifically identify property described under paragraph (2) about which there is a
dispute whether it is reportable under this chapter; and
new text end

new text begin (4) state the amount or value of the property.
new text end

Sec. 2.

new text begin [345A.1002] EXAMINATION OF RECORDS TO DETERMINE
COMPLIANCE.
new text end

new text begin The administrator, at reasonable times and on reasonable notice, may:
new text end

new text begin (1) examine the records of a person, including examination of appropriate records in the
possession of an agent of the person under examination, if the records are reasonably
necessary to determine whether the person has complied with this chapter;
new text end

new text begin (2) issue an administrative subpoena requiring the person or agent of the person to make
records available for examination; and
new text end

new text begin (3) bring an action seeking judicial enforcement of the subpoena.
new text end

Sec. 3.

new text begin [345A.1003] RULES FOR CONDUCTING EXAMINATION.
new text end

new text begin (a) The administrator shall adopt rules governing procedures and standards for an
examination under section 345A.1002, including rules for use of an estimation, extrapolation,
and statistical sampling in conducting an examination.
new text end

new text begin (b) An examination under section 345A.1002 must be performed under rules adopted
under subsection (a) and with generally accepted examination practices and standards
applicable to an unclaimed-property examination.
new text end

new text begin (c) If a person subject to examination under section 345A.1002 has filed the reports
required under sections 345A.401 and 345A.1001 and has retained the records required by
section 345A.404, the following rules apply:
new text end

new text begin (1) The examination must include a review of the person's records.
new text end

new text begin (2) The examination may not be based on an estimate unless the person expressly consents
in a record to the use of an estimate.
new text end

new text begin (3) The person conducting the examination shall consider the evidence presented in
good faith by the person in preparing the findings of the examination under section
345A.1007.
new text end

Sec. 4.

new text begin [345A.1004] RECORDS OBTAINED IN EXAMINATION.
new text end

new text begin Records obtained and records, including work papers, compiled by the administrator in
the course of conducting an examination under section 345A.1002:
new text end

new text begin (1) are subject to the confidentiality and security provisions of article 14 and are not
public records;
new text end

new text begin (2) may be used by the administrator in an action to collect property or otherwise enforce
this chapter;
new text end

new text begin (3) may be used in 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 is legally bound to maintain the
confidentiality and security of information obtained from a person subject to examination
in a manner substantially equivalent to article 14;
new text end

new text begin (4) must be disclosed, on request, to the person that administers the unclaimed property
law of another state for that state's use in circumstances equivalent to circumstances described
in this chapter, if the other state is required to maintain the confidentiality and security of
information obtained in a manner substantially equivalent to article 14;
new text end

new text begin (5) must be produced by the administrator under an administrative or judicial subpoena
or administrative or court order; and
new text end

new text begin (6) must be produced by the administrator on request of the person subject to the
examination in an administrative or judicial proceeding relating to the property.
new text end

Sec. 5.

new text begin [345A.1005] EVIDENCE OF UNPAID DEBT OR UNDISCHARGED
OBLIGATION.
new text end

new text begin (a) A record of a putative holder showing an unpaid debt or undischarged obligation is
prima facie evidence of the debt or obligation.
new text end

new text begin (b) A putative holder may establish by a preponderance of the evidence that there is no
unpaid debt or undischarged obligation for a debt or obligation described in subsection (a)
or that the debt or obligation was not, or no longer is, a fixed and certain obligation of the
putative holder.
new text end

new text begin (c) A putative holder may overcome prima facie evidence under subsection (a) by
establishing by a preponderance of the evidence that a check, draft, or similar instrument
was:
new text end

new text begin (1) issued as an unaccepted offer in settlement of an unliquidated amount;
new text end

new text begin (2) issued but later was replaced with another instrument because the earlier instrument
was lost or contained an error that was corrected;
new text end

new text begin (3) issued to a party affiliated with the issuer;
new text end

new text begin (4) paid, satisfied, or discharged;
new text end

new text begin (5) issued in error;
new text end

new text begin (6) issued without consideration;
new text end

new text begin (7) issued but there was a failure of consideration;
new text end

new text begin (8) voided within a reasonable time after issuance for a valid business reason set forth
in a contemporaneous record; or
new text end

new text begin (9) issued but not delivered to the third-party payee for a sufficient reason recorded
within a reasonable time after issuance.
new text end

new text begin (d) In asserting a defense under this section, a putative holder may present evidence of
a course of dealing between the putative holder and the apparent owner or of custom and
practice.
new text end

Sec. 6.

new text begin [345A.1006] FAILURE OF PERSON EXAMINED TO RETAIN RECORDS.
new text end

new text begin If a person subject to examination under section 345A.1002 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, consistent with examination procedures and standards adopted under section
345A.1003(a) and in accord with section 345A.1003(b).
new text end

Sec. 7.

new text begin [345A.1007] REPORT TO PERSON WHOSE RECORDS WERE EXAMINED.
new text end

new text begin At the conclusion of an examination under section 345A.1002, the administrator shall
provide to the person whose records were examined a complete and unredacted examination
report that specifies:
new text end

new text begin (1) the work performed;
new text end

new text begin (2) the property types reviewed;
new text end

new text begin (3) the methodology of any estimation technique, extrapolation, or statistical sampling
used in conducting the examination;
new text end

new text begin (4) each calculation showing the value of property determined to be due; and
new text end

new text begin (5) the findings of the person conducting the examination.
new text end

Sec. 8.

new text begin [345A.1008] COMPLAINT TO ADMINISTRATOR ABOUT CONDUCT OF
PERSON CONDUCTING EXAMINATION.
new text end

new text begin (a) If a person subject to examination under section 345A.1002 believes the person
conducting the examination has made an unreasonable or unauthorized request or is not
proceeding expeditiously to complete the examination, the person in a record may ask the
administrator to intervene and take appropriate remedial action, including countermanding
the request of the person conducting the examination, imposing a time limit for completion
of the examination, or reassigning the examination to another person.
new text end

new text begin (b) If a person in a record requests a conference with the administrator to present matters
that are the basis of a request under subsection (a), the administrator shall hold the conference
not later than 30 days after receiving the request. The administrator may hold the conference
in person, by telephone, or by electronic means.
new text end

new text begin (c) If a conference is held under subsection (b), not later than 30 days after the conference
ends, the administrator shall provide a report in a record of the conference to the person
that requested the conference.
new text end

Sec. 9.

new text begin [345A.1009] ADMINISTRATOR'S CONTRACT WITH ANOTHER TO
CONDUCT EXAMINATION.
new text end

new text begin (a) In this section, "related to the administrator" refers to an individual who is:
new text end

new text begin (1) the administrator's spouse, partner in a civil union, domestic partner, or reciprocal
beneficiary;
new text end

new text begin (2) the administrator's child, stepchild, grandchild, parent, stepparent, sibling, step-sibling,
half-sibling, aunt, uncle, niece, or nephew;
new text end

new text begin (3) a spouse, partner in a civil union, domestic partner, or reciprocal beneficiary of an
individual under paragraph (2); or
new text end

new text begin (4) any individual residing in the administrator's household.
new text end

new text begin (b) The administrator may contract with a person to conduct an examination under this
article.
new text end

new text begin (c) If the person with which the administrator contracts under subsection (b) is:
new text end

new text begin (1) an individual, the individual may not be related to the administrator; or
new text end

new text begin (2) a business entity, the entity may not be owned in whole or in part by the administrator
or an individual related to the administrator.
new text end

new text begin (d) At least 60 days before assigning a person under contract with the administrator
under subsection (b) to conduct an examination, the administrator shall demand in a record
that the person to be examined submit a report and deliver property that is previously
unreported.
new text end

new text begin (e) If the administrator contracts with a person under subsection (b):
new text end

new text begin (1) 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 contingent fee arrangement may not provide for a payment that exceeds ten percent
of the amount or value of property paid or delivered as a result of the examination; and
new text end

new text begin (3) on request by a person subject to examination by a contractor, the administrator shall
deliver to the person a complete and unredacted copy of the contract and any contract
between the contractor and a person employed or engaged by the contractor to conduct the
examination.
new text end

new text begin (f) A contract under subsection (b) is subject to public disclosure without redaction.
new text end

Sec. 10.

new text begin [345A.1010] LIMIT ON FUTURE EMPLOYMENT.
new text end

new text begin The administrator or an individual employed by the administrator who participates in,
recommends, or approves the award of a contract under section 345A.1009(b) on or after
the effective date of this chapter may not be employed by, contracted with, or compensated
in any capacity by the contractor or an affiliate of the contractor for two years after the latest
of participation in, recommendation of, or approval of the award or conclusion of the contract.
new text end

Sec. 11.

new text begin [345A.1011] REPORT BY ADMINISTRATOR TO STATE OFFICIAL.
new text end

new text begin (a) Not later than three months after the end of the state fiscal year, the administrator
shall compile and submit a report to the governor, president of the senate, and speaker of
the house of representatives. The report must contain the following information about
property presumed abandoned for the preceding fiscal year for the state:
new text end

new text begin (1) the total amount and value of all property paid or delivered under this chapter to the
administrator, separated into:
new text end

new text begin (A) the part voluntarily paid or delivered; and
new text end

new text begin (B) the part paid or delivered as a result of an examination under section 345A.1002,
separated into the part recovered as a result of an examination conducted by:
new text end

new text begin (i) a state employee; and
new text end

new text begin (ii) a contractor under section 345A.1009;
new text end

new text begin (2) the name of and amount paid to each contractor under section 345A.1009 and the
percentage the total compensation paid to all contractors under section 345A.1009 bears to
the total amount paid or delivered to the administrator as a result of all examinations
performed under section 345A.1009;
new text end

new text begin (3) the total amount and value of all property paid or delivered by the administrator to
persons that made claims for property held by the administrator under this chapter and the
percentage the total payments made and value of property delivered to claimants bears to
the total amounts paid and value delivered to the administrator; and
new text end

new text begin (4) the total amount of claims made by persons claiming to be owners which:
new text end

new text begin (A) were denied;
new text end

new text begin (B) were allowed; and
new text end

new text begin (C) are pending.
new text end

new text begin (b) The report under subsection (a) is a public record subject to public disclosure without
redaction.
new text end

Sec. 12.

new text begin [345A.1012] DETERMINATION OF LIABILITY FOR UNREPORTED
REPORTABLE PROPERTY.
new text end

new text begin If the administrator determines from an examination conducted under section 345A.1002
that a putative holder failed or refused to pay or deliver to the administrator property which
is reportable under this chapter, the administrator shall issue a determination of the putative
holder's liability to pay or deliver and give notice in a record to the putative holder of the
determination.
new text end

ARTICLE 11

DETERMINATION OF LIABILITY; PUTATIVE HOLDER REMEDIES

Section 1.

new text begin [345A.1101] INFORMAL CONFERENCE.
new text end

new text begin (a) Not later than 30 days after receipt of a notice under section 345A.1012, the putative
holder may request an informal conference with the administrator to review the determination.
Except as otherwise provided in this section, the administrator may designate an employee
to act on behalf of the administrator.
new text end

new text begin (b) If a putative holder makes a timely request under subsection (a) for an informal
conference:
new text end

new text begin (1) not later than 20 days after the date of the request, the administrator shall set the time
and place of the conference;
new text end

new text begin (2) the administrator shall give the putative holder notice in a record of the time and
place of the conference;
new text end

new text begin (3) the conference may be held in person, by telephone, or by electronic means, as
determined by the administrator;
new text end

new text begin (4) the request tolls the 90-day period under sections 345A.1103 and 345A.1104 until
notice of a decision under paragraph (7) has been given to the putative holder or the putative
holder withdraws the request for the conference;
new text end

new text begin (5) the conference may be postponed, adjourned, and reconvened as the administrator
determines appropriate;
new text end

new text begin (6) the administrator or administrator's designee with the approval of the administrator
may modify a determination made under section 345A.1012 or withdraw it; and
new text end

new text begin (7) the administrator shall issue a decision in a record and provide a copy of the record
to the putative holder and examiner not later than 20 days after the conference ends.
new text end

new text begin (c) A conference under subsection (b) is not an administrative remedy and is not a
contested case subject to chapter 14. An oath is not required and rules of evidence do not
apply in the conference.
new text end

new text begin (d) At a conference under subsection (b), the putative holder must be given an opportunity
to confer informally with the administrator and the person that examined the records of the
putative holder to:
new text end

new text begin (1) discuss the determination made under section 345A.1012; and
new text end

new text begin (2) present any issue concerning the validity of the determination.
new text end

new text begin (e) If the administrator fails to act within the period prescribed in subsection (b)(1) or
(7), the failure does not affect a right of the administrator, except that interest does not
accrue on the amount for which the putative holder was determined to be liable under section
345A.1012 during the period in which the administrator failed to act until the earlier of:
new text end

new text begin (1) the date under section 345A.1103 the putative holder initiates administrative review
or files an action under section 345A.1104; or
new text end

new text begin (2) 90 days after the putative holder received notice of the administrator's determination
under section 345A.1012 if no review was initiated under section 345A.1103 and no action
was filed under section 345A.1104.
new text end

new text begin (f) The administrator may hold an informal conference with a putative holder about a
determination under section 345A.1012 without a request at any time before the putative
holder initiates administrative review under section 345A.1103 or files an action under
section 345A.1104.
new text end

new text begin (g) Interest and penalties under section 345A.1204 continue to accrue on property not
reported, paid, or delivered as required by this chapter after the initiation, and during the
pendency, of an informal conference under this section.
new text end

Sec. 2.

new text begin [345A.1102] REVIEW OF ADMINISTRATOR'S DETERMINATION.
new text end

new text begin A putative holder may seek relief from a determination under section 345A.1012 by:
new text end

new text begin (1) administrative review under section 345A.1103; or
new text end

new text begin (2) judicial review under section 345A.1104.
new text end

Sec. 3.

new text begin [345A.1103] ADMINISTRATIVE REVIEW.
new text end

new text begin (a) Not later than 90 days after receiving notice of the administrator's determination
under section 345A.1012, a putative holder may initiate a proceeding under chapter 14 for
review of the administrator's determination.
new text end

new text begin (b) A final decision in an administrative proceeding initiated under subsection (a) is
subject to judicial review by the court as a matter of right in a de novo proceeding on the
record in which either party is entitled to introduce evidence as a supplement to the record.
new text end

Sec. 4.

new text begin [345A.1104] JUDICIAL REMEDY.
new text end

new text begin (a) Not later than 90 days after receiving notice of the administrator's determination
under section 345A.1012, the putative holder may:
new text end

new text begin (1) file an action against the administrator in the district court challenging the
administrator's determination of liability and seeking a declaration that the determination
is unenforceable, in whole or in part; or
new text end

new text begin (2) pay the amount or deliver the property determined by the administrator to be paid
or delivered to the administrator and, not later than six months after payment or delivery,
file an action against the administrator in the district court for a refund of all or part of the
amount paid or return of all or part of the property delivered.
new text end

new text begin (b) If a putative holder pays or delivers property the administrator determined must be
paid or delivered to the administrator at any time after the putative holder files an action
under subsection (a)(1), the court shall continue the action as if it had been filed originally
as an action for a refund or return of property under subsection (a)(2).
new text end

new text begin (c) On the final determination of an action filed under subsection (a), the court may, on
application, award to the prevailing party its reasonable attorney's fees, costs, and expenses,
of litigation.
new text end

new text begin (d) A putative holder that is the prevailing party in an action under subsection (a)(2) for
refund of money paid to the administrator is entitled to interest on the amount refunded, at
the same rate a holder is required to pay to the administrator under section 345A.1204(a),
from the date paid to the administrator until the date of the refund.
new text end

ARTICLE 12

ENFORCEMENT BY ADMINISTRATOR

Section 1.

new text begin [345A.1201] JUDICIAL ACTION TO ENFORCE LIABILITY.
new text end

new text begin (a) If a determination under section 345A.1012 becomes final and is not subject to
administrative or judicial review, the administrator may commence an action in the district
court or in an appropriate court of another state to enforce the determination and secure
payment or delivery of past due, unpaid, or undelivered property. The action must be brought
not later than one year after the determination becomes final.
new text end

new text begin (b) In an action under subsection (a), if no court in this state has jurisdiction over the
defendant, the administrator may commence an action in any court having jurisdiction over
the defendant.
new text end

Sec. 2.

new text begin [345A.1202] INTERSTATE AND INTERNATIONAL AGREEMENT;
COOPERATION.
new text end

new text begin (a) Subject to subsection (b), the administrator may:
new text end

new text begin (1) exchange information with another state or foreign country relating to property
presumed abandoned or relating to the possible existence of property presumed abandoned;
and
new text end

new text begin (2) authorize in a record another state or foreign country or a person acting on behalf of
the other state or country to examine its records of a putative holder as provided in article
10.
new text end

new text begin (b) An exchange or examination under subsection (a) may be done only if the state or
foreign country has confidentiality and security requirements substantially equivalent to
those in article 14 or agrees in a record to be bound by this state's confidentiality and security
requirements.
new text end

Sec. 3.

new text begin [345A.1203] ACTION INVOLVING ANOTHER STATE OR FOREIGN
COUNTRY.
new text end

new text begin (a) The administrator may join another state or foreign country to examine and seek
enforcement of this chapter against a putative holder.
new text end

new text begin (b) On request of another state or foreign country, the attorney general may commence
an action on behalf of the other state or country to enforce, in this state, the law of the other
state or country against a putative holder subject to a claim by the other state or country, if
the other state or country agrees to pay costs incurred by the attorney general in the action.
new text end

new text begin (c) The administrator may request the official authorized to enforce the unclaimed
property law of another state or foreign country to commence an action to recover property
in the other state or country on behalf of the administrator. This state shall pay the costs,
including reasonable attorney's fees and expenses, incurred by the other state or foreign
country in an action under this subsection.
new text end

new text begin (d) The administrator may pursue an action on behalf of this state to recover property
subject to this chapter but delivered to the custody of another state, if the administrator
believes the property is subject to the custody of the administrator.
new text end

new text begin (e) The administrator may retain an attorney in this state, another state, or a foreign
country to commence an action to recover property on behalf of the administrator and may
agree to pay attorney's fees based in whole or in part on a fixed fee, hourly fee, or a
percentage of the amount or value of property recovered in the action.
new text end

new text begin (f) Expenses incurred by this state in an action under this section may be paid from
property received under this chapter or the net proceeds of the property. Expenses paid to
recover property may not be deducted from the amount that is subject to a claim under this
chapter by the owner.
new text end

Sec. 4.

new text begin [345A.1204] INTEREST AND PENALTY FOR FAILURE TO ACT IN
TIMELY MANNER.
new text end

new text begin (a) A holder that fails to report, pay, or deliver property within the time prescribed by
this chapter shall pay to the administrator interest at an annual rate of ... percent on the
property or value of the property from the date the property should have been reported,
paid, or delivered to the administrator until the date reported, paid, or delivered.
new text end

new text begin (b) Except as otherwise provided in section 345A.1205 or 345A.1206, the administrator
may require a holder that fails to report, pay, or deliver property within the time prescribed
by this chapter to pay to the administrator, in addition to interest included under subsection
(a), a civil penalty of $200 for each day the duty is not performed, up to a cumulative
maximum amount of $5,000.
new text end

Sec. 5.

new text begin [345A.1205] OTHER CIVIL PENALTIES.
new text end

new text begin (a) If a holder enters into a contract or other arrangement for the purpose of evading an
obligation under this chapter or otherwise willfully fails to perform a duty imposed on the
holder under this chapter, the administrator may require the holder to pay the administrator,
in addition to interest as provided in section 345A.1204(a), a civil penalty of $1,000 for
each day the obligation is evaded or the duty is not performed, up to a cumulative maximum
amount of $25,000, plus 25 percent of the amount or value of property that should have
been but was not reported, paid, or delivered as a result of the evasion or failure to perform.
new text end

new text begin (b) If a holder makes a fraudulent report under this chapter, the administrator may require
the holder to pay to the administrator, in addition to interest under section 345A.1204(a), a
civil penalty of $1,000 for each day from the date the report was made until corrected, up
to a cumulative maximum of $25,000, plus 25 percent of the amount or value of any property
that should have been reported but was not included in the report or was underreported.
new text end

Sec. 6.

new text begin [345A.1206] WAIVER OF INTEREST AND PENALTY.
new text end

new text begin The administrator:
new text end

new text begin (1) may waive, in whole or in part, interest under section 345A.1204(a) and penalties
under section 345A.1204(b) or 345A.1205; and
new text end

new text begin (2) shall waive a penalty under section 345A.1204(b) if the administrator determines
that the holder acted in good faith and without negligence.
new text end

ARTICLE 13

AGREEMENT TO LOCATE PROPERTY OF APPARENT OWNER HELD BY
ADMINISTRATOR

Section 1.

new text begin [345A.1301] WHEN AGREEMENT TO LOCATE PROPERTY
ENFORCEABLE.
new text end

new text begin An agreement by an apparent owner and another person, the primary purpose of which
is to locate, deliver, recover, or assist in the location, delivery, or recovery of property held
by the administrator, is enforceable only if the agreement:
new text end

new text begin (1) is in a record that clearly states the nature of the property and the services to be
provided;
new text end

new text begin (2) is signed by or on behalf of the apparent owner; and
new text end

new text begin (3) states the amount or value of the property reasonably expected to be recovered,
computed before and after a fee or other compensation to be paid to the person has been
deducted.
new text end

Sec. 2.

new text begin [345A.1302] WHEN AGREEMENT TO LOCATE PROPERTY VOID.
new text end

new text begin (a) Subject to subsection (b), an agreement under section 345A.1301 is void if it is
entered into during the period beginning on the date the property was paid or delivered by
a holder to the administrator and ending 24 months after the payment or delivery.
new text end

new text begin (b) If a provision in an agreement described in subsection (a) applies to mineral proceeds
for which compensation is to be paid to the other person based in whole or in part on a part
of the underlying minerals or mineral proceeds not then presumed abandoned, the provision
is void regardless of when the agreement was entered into.
new text end

new text begin (c) An agreement under subsection (a) which provides for compensation in an amount
that is unconscionable is unenforceable except by the apparent owner. An apparent owner
that believes the compensation the apparent owner has agreed to pay is unconscionable or
the administrator, acting on behalf of an apparent owner, or both, may file an action in the
district court to reduce the compensation to the maximum amount that is not unconscionable.
On the final determination of an action filed under this subsection, the court may, on
application, award the prevailing party its reasonable attorney's fees, costs, and expenses
of litigation.
new text end

new text begin (d) An apparent owner or the administrator may assert that an agreement described in
this section is void on a ground other than it provides for payment of unconscionable
compensation.
new text end

new text begin (e) This section does not apply to an apparent owner's agreement with an attorney to
pursue a claim for recovery of specifically identified property held by the administrator or
to contest the administrator's denial of a claim for recovery of the property.
new text end

Sec. 3.

new text begin [345A.1303] RIGHT OF AGENT OF APPARENT OWNER TO RECOVER
PROPERTY HELD BY ADMINISTRATOR.
new text end

new text begin (a) An apparent owner that contracts with another person to locate, deliver, recover, or
assist in the location, delivery, or recovery of property of the apparent owner which is held
by the administrator may designate the person as the agent of the apparent owner. The
designation must be in a record signed by the apparent owner.
new text end

new text begin (b) The administrator shall give the agent of the apparent owner all information
concerning the property which the apparent owner is entitled to receive, including information
that otherwise is confidential information under section 345A.1402.
new text end

new text begin (c) If authorized by the apparent owner, the agent of the apparent owner may bring an
action against the administrator on behalf of and in the name of the apparent owner.
new text end

ARTICLE 14

CONFIDENTIALITY AND SECURITY OF INFORMATION

Section 1.

new text begin [345A.1401] DEFINITIONS; APPLICABILITY.
new text end

new text begin (a) In this article, "personal information" means:
new text end

new text begin (1) information that identifies or reasonably can be used to identify an individual, such
as first and last name in combination with the individual's:
new text end

new text begin (A) Social Security number or other government-issued number or identifier;
new text end

new text begin (B) date of birth;
new text end

new text begin (C) home or physical address;
new text end

new text begin (D) electronic-mail address or other online contact information or Internet provider
address;
new text end

new text begin (E) financial account number or credit or debit card number;
new text end

new text begin (F) biometric data, health or medical data, or insurance information; or
new text end

new text begin (G) passwords or other credentials that permit access to an online or other account;
new text end

new text begin (2) personally identifiable financial or insurance information, including nonpublic
personal information defined by applicable federal law; and
new text end

new text begin (3) any combination of data that, if accessed, disclosed, modified, or destroyed without
authorization of the owner of the data or if lost or misused, would require notice or reporting
under state and federal privacy and data security law, whether or not the administrator or
the administrator's agent is subject to the law.
new text end

new text begin (b) A provision of this article that applies to the administrator or the administrator's
records applies to an administrator's agent.
new text end

Sec. 2.

new text begin [345A.1402] CONFIDENTIAL INFORMATION.
new text end

new text begin (a) Except as otherwise provided in this chapter, the following are confidential and
exempt from public inspection or disclosure:
new text end

new text begin (1) records of the administrator and the administrator's agent related to the administration
of this chapter;
new text end

new text begin (2) reports and records of a holder in the possession of the administrator or the
administrator's agent; and
new text end

new text begin (3) personal information and other information derived or otherwise obtained by or
communicated to the administrator or the administrator's agent from an examination under
this chapter of the records of a person.
new text end

new text begin (b) A record or other information that is confidential under law of this state other than
this chapter, another state, or the United States continues to be confidential when disclosed
or delivered under this chapter to the administrator or administrator's agent.
new text end

Sec. 3.

new text begin [345A.1403] WHEN CONFIDENTIAL INFORMATION MAY BE
DISCLOSED.
new text end

new text begin (a) When reasonably necessary to enforce or implement this chapter, the administrator
may disclose confidential information concerning property held by the administrator or the
administrator's agent only to:
new text end

new text begin (1) an apparent owner or the apparent owner's personal representative, attorney, other
legal representative, relative, or agent designated under section 345A.1303 to have the
information;
new text end

new text begin (2) the personal representative in the state, other legal representative, relative of a
deceased apparent owner, agent designated under section 345A.1303 by the deceased
apparent owner, or a person entitled to inherit from the deceased apparent owner;
new text end

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

new text begin (4) 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 if the other
state is required to maintain the confidentiality and security of information obtained in a
manner substantially equivalent to article 14;
new text end

new text begin (5) a person subject to an examination as required by section 345A.1004(6).
new text end

new text begin (b) Except as otherwise provided in section 345A.1402(a), the administrator shall include
on the website or in the database required by section 345A.503(c)(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

new text begin (c) The administrator and the administrator's agent may not use confidential information
provided to them or in their possession except as expressly authorized by this chapter or
required by law other than this chapter.
new text end

Sec. 4.

new text begin [345A.1404] CONFIDENTIALITY AGREEMENT.
new text end

new text begin A person to be examined under section 345A.1002 may require, as a condition of
disclosure of the records of the person to be examined, that each person having access to
the records disclosed in the examination execute and deliver to the person to be examined
a confidentiality agreement that:
new text end

new text begin (1) is in a form that is reasonably satisfactory to the administrator; and
new text end

new text begin (2) requires the person having access to the records to comply with the provisions of
this article applicable to the person.
new text end

Sec. 5.

new text begin [345A.1405] NO CONFIDENTIAL INFORMATION IN NOTICE.
new text end

new text begin Except as otherwise provided in sections 345A.501 and 345A.502, a holder is not required
under this chapter to include confidential information in a notice the holder is required to
provide to an apparent owner under this chapter.
new text end

Sec. 6.

new text begin [345A.1406] SECURITY OF INFORMATION.
new text end

new text begin (a) If a holder is required to include confidential information in a report to the
administrator, the information must be provided by a secure means.
new text end

new text begin (b) If confidential information in a record is provided to and maintained by the
administrator or administrator's agent as required by this chapter, the administrator or agent
shall:
new text end

new text begin (1) implement administrative, technical, and physical safeguards to protect the security,
confidentiality, and integrity of the information required by state and federal privacy and
data security law whether or not the administrator or the administrator's agent is subject to
the law;
new text end

new text begin (2) protect against reasonably anticipated threats or hazards to the security, confidentiality,
or integrity of the information; and
new text end

new text begin (3) protect against unauthorized access to or use of the information which could result
in substantial harm or inconvenience to a holder or the holder's customers, including insureds,
annuitants, and policy or contract owners and their beneficiaries.
new text end

new text begin (c) The administrator:
new text end

new text begin (1) after notice and comment, shall adopt and implement a security plan that identifies
and assesses reasonably foreseeable internal and external risks to confidential information
in the administrator's possession and seeks to mitigate the risks; and
new text end

new text begin (2) shall ensure that an administrator's agent adopts and implements a similar plan with
respect to confidential information in the agent's possession.
new text end

new text begin (d) The administrator and the administrator's agent shall educate and train their employees
regarding the plan adopted under subsection (c).
new text end

new text begin (e) The administrator and the administrator's agent shall in a secure manner return or
destroy all confidential information no longer reasonably needed under this chapter.
new text end

Sec. 7.

new text begin [345A.1407] SECURITY BREACH.
new text end

new text begin (a) Except to the extent prohibited by law other than this chapter, the administrator or
administrator's agent shall notify a holder as soon as practicable of:
new text end

new text begin (1) a suspected loss, misuse or unauthorized access, disclosure, modification, or
destruction of confidential information obtained from the holder in the possession of the
administrator or an administrator's agent; and
new text end

new text begin (2) any interference with operations in any system hosting or housing confidential
information which:
new text end

new text begin (A) compromises the security, confidentiality, or integrity of the information; or
new text end

new text begin (B) creates a substantial risk of identity fraud or theft.
new text end

new text begin (b) Except as necessary to inform an insurer, attorney, investigator, or others as required
by law, the administrator and an administrator's agent may not disclose, without the express
consent in a record of the holder, an event described in subsection (a) to a person whose
confidential information was supplied by the holder.
new text end

new text begin (c) If an event described in subsection (a) occurs, the administrator and the administrator's
agent shall:
new text end

new text begin (1) take action necessary for the holder to understand and minimize the effect of the
event and determine its scope; and
new text end

new text begin (2) cooperate with the holder with respect to:
new text end

new text begin (A) any notification required by law concerning a data or other security breach; and
new text end

new text begin (B) a regulatory inquiry, litigation, or similar action.
new text end

Sec. 8.

new text begin [345A.1408] INDEMNIFICATION FOR BREACH.
new text end

new text begin (a) If a claim is made or action commenced arising out of an event described in section
345A.1407(a) relating to confidential information possessed by the administrator, this state
shall indemnify, defend, and hold harmless a holder and the holder's affiliates, officers,
directors, employees, and agents as to:
new text end

new text begin (1) any claim or action; and
new text end

new text begin (2) a liability, obligation, loss, damage, cost, fee, penalty, fine, settlement, charge, or
other expense, including reasonable attorney's fees and costs, established by the claim or
action.
new text end

new text begin (b) If a claim is made or action commenced arising out of an event described in section
345A.1407(a) relating to confidential information possessed by an administrator's agent,
the administrator's agent shall indemnify, defend, and hold harmless a holder and the holder's
affiliates, officers, directors, employees, and agents as to:
new text end

new text begin (1) any claim or action; and
new text end

new text begin (2) a liability, obligation, loss, damage, cost, fee, penalty, fine, settlement, charge, or
other expense, including reasonable attorney's fees and costs, established by the claim or
action.
new text end

new text begin (c) The administrator shall require an administrator's agent that will receive confidential
information required under this chapter to maintain adequate insurance for indemnification
obligations of the administrator's agent under subsection (b). The agent required to maintain
the insurance shall provide evidence of the insurance to:
new text end

new text begin (1) the administrator not less frequently than annually; and
new text end

new text begin (2) the holder on commencement of an examination and annually thereafter until all
confidential information is returned or destroyed under section 345A.1406(e).
new text end

ARTICLE 15

MISCELLANEOUS PROVISIONS

Section 1.

new text begin [345A.1501] UNIFORMITY OF APPLICATION AND CONSTRUCTION.
new text end

new text begin In applying and construing this uniform act, consideration must be given to the need to
promote uniformity of the law with respect to its subject matter among states that enact it.
new text end

Sec. 2.

new text begin [345A.1502] RELATION TO ELECTRONIC SIGNATURES IN GLOBAL
AND NATIONAL COMMERCE ACT.
new text end

new text begin This chapter modifies, limits, or supersedes the Electronic Signatures in Global and
National Commerce Act, United States Code, title 15, section 7001 et seq., but does not
modify, limit, or supersede section 101(c) of that act, United States Code, title 15, section
7001(c), or authorize electronic delivery of any of the notices described in section 103(b)
of that act, United States Code, title 15, section 7003(b).
new text end

Sec. 3.

new text begin [345A.1503] TRANSITIONAL PROVISION.
new text end

new text begin (a) An initial report filed under this chapter for property that was not required to be
reported before the effective date of this chapter, but that is required to be reported under
this chapter, must include all items of property that would have been presumed abandoned
during the 10-year period preceding the effective date of this chapter as if this [chapter had
been in effect during that period.
new text end

new text begin b) This chapter does not relieve a holder of a duty that arose before the effective date
of this chapter to report, pay, or deliver property. Subject to section 345A.610(b) and (c),
a holder that did not comply with the law governing unclaimed property before the effective
date of this chapter is subject to applicable provisions for enforcement and penalties in effect
before the effective date of this chapter.
new text end

Sec. 4. new text beginREPEAL.
new text end

new text begin new text end

Sec. 5. new text beginEFFECTIVE DATE.
new text end

new text begin This chapter takes effect .........
new text end