North Carolina 2017-2018 Session Status: Enacted Bipartisan · 1 R · 1 D cosponsors

HB 294 — Unclaimed Property Notice Requirements.-AB

Last action — Signed by Gov. 7/20/2017

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced March 08, 2017. Enacted.

Prognosis

Likely to advance 96% · high confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 5 sponsors

    0 primary, 5 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (1 R · 1 D) — cross-party backing.

  • Cleared a recorded vote

    Passed 2 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

128 added · 214 removed

Plain-language change summary

The amended version of Bill HB 294 updates the requirements for notifying apparent owners about unclaimed property. It clarifies that if the holder believes the mailing address is incorrect or unavailable, they must conduct a search for a new address before sending a notice. Furthermore, if the owner has agreed to receive notifications via email, they must also be notified electronically. These changes are important because they enhance communication with property owners and help ensure that they are informed about their unclaimed assets.

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GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2017 H 2 HOUSE BILL 294 Committee Substitute Favorable 4/25/17 Short Title:
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2017 H 1 HOUSE BILL 294 Short Title:
Representative Hurley.
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
March 9, 2017 A BILL TO BE ENTITLED AN ACT TO MAKE CHANGES TO THE NOTICE REQUIREMENTS AND PENALTY FOR THE DISPOSITION OF ABANDONED PROPERTY AND TO MAKE TECHNICAL AND CLARIFYING CHANGES TO THE UNCLAIMED PROPERTY STATUTES.
Regulatory Reform, if favorable, Finance March 9, 2017 A BILL TO BE ENTITLED AN ACT TO MAKE CHANGES TO THE NOTICE REQUIREMENTS AND PENALTY FOR THE DISPOSITION OF ABANDONED PROPERTY AND TO MAKE TECHNICAL AND CLARIFYING CHANGES TO THE UNCLAIMED PROPERTY STATUTES.
SECTION 2.(a) G.S.
SECTION 2.
G.S.
116B-70, as amended by Section 1(a) of this act, reads as rewritten:
"§ 116B-70.
Destruction or disposition of property having no substantial or commercial value;
immunity from liability.liability;
property of historical significance.
(a) If the Treasurer determines after investigation that property property, including stock or other equity interest in a business association, including a security entitlement under Article 8 of Chapter 25 of the General Statutes, delivered under this Chapter has no substantial commercial value, the Treasurer may destroy or otherwise dispose of the property at any time.
An action or proceeding may not be maintained against the State or any officer, employee, or agent of the State, both past and present, in the person's individual and official capacity, or against the holder for or on account of an act of the Treasurer under this subsection, except for intentional misconduct.
(b) Notwithstanding the provisions of G.S.
116B-65, the Treasurer may retain any tangible property delivered to the Treasurer, if the property has recognized historic significance.
The historic significance shall be certified by the Treasurer, with the advice of the Secretary of Natural and Cultural Resources;
and a statement of the appraised value of the property shall be filed with the certification.
Historic property retained under this subsection may be stored and displayed at any suitable location." SECTION 3.(a) G.S.
(a1) A holder of property that is presumed abandoned and that is either (i) a security or other equity interest in a business association, including a security entitlement under Article 8 of Chapter 25 of the General Statutes, that is valued at twenty-five dollars ($25.00) or more or (ii) property, other than a security or other equity interest in a business association, including a security entitlement under Article 8 of Chapter 25 of the General Statutes, that is valued at fifty dollars ($50.00) or more shall send written notice by first-class mail to the apparent owner not more than 120 days or less than 60 days before filing the report required by G.S.
(a1) A holder of property that is presumed abandoned and that is either (i) stock, or other equity interest in a business association, including a security entitlement under Article 8 of Chapter 25 of the General Statutes, that is valued at twenty-five dollars ($25.00) or more or (ii) property, other than stock or other equity interest in a business association, including a security entitlement under Article 8 of Chapter 25 of the General Statutes, that is valued at fifty dollars ($50.00) or more shall provide written notice to the apparent owner through the following means:
*H294-v-1* General Assembly Of North Carolina Session 2017 (1) The holder shall send written notice by first-class mail to the apparent owner not more than 120 days or less than 60 days before filing the report required by G.S.
The holder shall exercise reasonable care to ascertain that it is sending the written notice to the apparent owner's correct address.
If the holder has reason to believe the mailing address is not correct or the holder does not have a mailing address, not more than 120 days or less than 60 days before filing the report required by G.S.
116B-60, the holder shall conduct at least one search on an information database service, or such other alternative as the Treasurer may authorize.
If the search appears to reveal a new mailing address for the apparent owner, the written notice shall be sent to that address.
(2) If the apparent owner has consented to receive electronic mail from the holder and the holder has a valid electronic mail address, the holder shall, in addition to the written notice sent by first-class mail, send written notice electronically to the apparent owner's electronic mail address.
(1) A statement that, according to the records of the holder, property is being held to which the addressee appears entitled and the amount or description of the property;property.
(1) A statement that, according to the records of the holder, property is being held to which the addressee appears entitled and the amount or entitled, a description of the property;property, and the amount or value of the property if known.
(3) A statement that, if satisfactory proof of claim is not presented by the owner to the holder by the following October 1 or, if the holder is an insurance *H294-v-2* General Assembly Of North Carolina Session 2017 company, by the following April 1, the property will be placed in the custody of the Treasurer, to whom all further claims shall be directed.
(3) A statement that, if satisfactory proof of claim is not presented by the owner to the holder by the following October 1 or, if the holder is an insurance company, by the following April 1, the property will be placed in the custody of the Treasurer, to whom all further claims shall be directed.
(4) A statement that, once property is placed in the custody of the Treasurer, all interest, dividends, income, and gains earned on the property will remain with the Treasurer, even if the owner subsequently reclaims the property from the Treasurer." SECTION 2.(b) G.S.
(4) A statement that, once property is placed in the custody of the Treasurer, all interest, dividends, income, and gains earned on the property will remain with the Treasurer, even if the owner subsequently reclaims the property from the Treasurer." SECTION 3.(b) G.S.
(b) A holder who willfully fails to report, pay, or deliver property within the time prescribed by this Chapter, or willfully fails to perform other duties imposed by this Chapter, including the duties imposed by G.S.
(b) A holder who willfully fails to report, pay, or deliver property within the time prescribed by this Chapter, or willfully fails to perform other duties imposed by this Chapter, shall pay to the Treasurer, in addition to interest as provided in subsection (a) of this section, a civil penalty of one thousand dollars ($1,000) for each day the report, payment, or delivery is withheld, or the duty is not performed, up to a maximum of twenty-five thousand dollars ($25,000), plus twenty-five percent (25%) of the value of any property that should have been but was not reported.
116B-59, shall pay to the Treasurer, in addition to interest as provided in subsection (a) of this section, a civil penalty of one thousand dollars ($1,000) for each day the report, payment, or delivery is withheld, or the duty is not performed, up to a maximum of twenty-five thousand dollars ($25,000), plus twenty-five percent (25%) of the value of any property that should have been but was not reported.
Page 2 House Bill 294-First Edition General Assembly Of North Carolina Session 2017 (c) A holder who makes a fraudulent report shall pay to the Treasurer, in addition to interest as provided in subsection (a) of this section, a civil penalty of one thousand dollars ($1,000) for each day from the date a report under this Chapter was due, up to a maximum of twenty-five thousand dollars ($25,000), plus twenty-five percent (25%) of the value of any property that should have been but was not reported.
(c) A holder who makes a fraudulent report shall pay to the Treasurer, in addition to interest as provided in subsection (a) of this section, a civil penalty of one thousand dollars ($1,000) for each day from the date a report under this Chapter was due, up to a maximum of twenty-five thousand dollars ($25,000), plus twenty-five percent (25%) of the value of any property that should have been but was not reported.
(c1) If a holder fails to perform its duties under G.S.
(d) The Treasurer for good cause may waive, in whole or in part, interest under subsection (a) of this section and penalties under subsection (b) and subsection (c1) of this section." SECTION 2.(c) This section becomes effective October 1, 2017, and applies to property presumed abandoned on or after that date.
116B-59, the Treasurer may access a civil penalty of one thousand dollars ($1,000) for each day a requirement is not performed, up to a maximum penalty of twenty-five thousand dollars ($25,000).
SECTION 3.
(d) The Treasurer for good cause may waive, in whole or in part, interest under subsection (a) of this section and penalties under subsection (b) and subsection (c1) of this section." SECTION 3.(c) This section becomes effective October 1, 2017, and applies to property presumed abandoned on or after that date.
SECTION 4.
Stock Security or other evidence of ownership of an interest in a business association;
Stock or other evidence of ownership of an interest in a business association;
Page 2 House Bill 294-Second Edition General Assembly Of North Carolina Session 2017 f.
f.
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 similar benefits." SECTION 4.
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 similar benefits." SECTION 5.
G.S.
Unless otherwise provided, this act is effective when it becomes law.
116B-53 reads as rewritten:
House Bill 294-First Edition Page 3
"§ 116B-53.
Presumptions of abandonment.
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(a) Property is unclaimed if the apparent owner has not communicated in writing or by other means reflected in a contemporaneous record prepared by or on behalf of the holder, with the holder concerning the property or the account in which the property is held, and has not otherwise indicated an interest in the property.
A communication with an owner by a person (other than the holder or its representative) who has not, in writing, identified the property to the owner is not an indication of interest in the property by the owner.
(b) An indication of an interest in property includes:
(1) The presentment of a check or other instrument of payment of a dividend or other distribution made with respect to an account or underlying stock security or other interest in a business association or, in the case of a distribution made by electronic or similar means, evidence that the distribution has been received;
(2) The presentment of a check or other instrument of payment of interest made with respect to debt of a business association or, in the case of an interest payment made by electronic or similar means, evidence that the interest payment has been received;
(3) Owner-directed activity in the account in which the property is held, including a direction by the owner to increase, decrease, or change the amount or type of property held in the account;
(4) The making of a deposit to or withdrawal from an account in a financial organization;
(5) Owner activity in another account with the holder of a deposit described in subdivisions (c)(2) and (c)(6) of this section;
and (6) The payment of a premium with respect to a property interest in an insurance policy;
but the application of an automatic premium loan provision or other nonforfeiture provision contained in an insurance policy does not prevent a policy from maturing or terminating if the insured has died or the insured or the beneficiary of the policy has otherwise become entitled to the proceeds before the depletion of the cash surrender value of a policy by the application of those provisions.
(c) Property is presumed abandoned if it is unclaimed by the apparent owner during the time set forth below for the particular property:
(1) Traveler's check, 15 years after issuance.
(2) Time deposit, including a deposit that is automatically renewable, 10 years after the later of initial maturity or the date of the last indication by the owner of interest in the property.
(3) Money order, cashier's check, teller's check, and certified check, seven years after issuance.
(4) Stock A security or other equity interest in a business association, including a security entitlement under Article 8 of the Uniform Commercial Code, Chapter 25 of the General Statutes, three years after the earlier of:
House Bill 294-Second Edition Page 3 General Assembly Of North Carolina Session 2017 a.
The date of a cash dividend or other distribution unclaimed by the apparent owner.
b.
The date a second consecutive mailing, notification, or communication from the holder to the apparent owner by first class mail is returned to the holder as unclaimed by or undeliverable to the apparent owner.
c.
The date the holder discontinued mailings, notifications, or communications to the apparent owner.
This subdivision applies to both the underlying stock,security, share, or other intangible ownership interest of an owner, and any stock,security, share, or other intangible interest of which the business association is in possession of the certificate or other evidence or indicia of ownership, and to the stock,security, share, or other ownership interest of dividend and nondividend paying business associations whether or not the interest is represented by a certificate.
(5) Debt of a business association, including debt evidenced by a matured or called bearer bond or an original issue discount bond, three years after the date of an interest or principal payment unclaimed by the apparent owner.
(5a) Any dividend, profit, distribution, interest, redemption, payment on principal, cash compensation (including amounts from a demutualized insurance company), or other sum held or owing by a business association for or to its shareholder, certificate holder, policyholder, member, bondholder, or other security holder, who has not claimed it, or corresponded in writing with the business association concerning it, within three years after the date prescribed for payment or delivery.
(6) Demand or savings deposit, five years after the date of the last indication by the owner of interest in the property.
(7) Money or credits owed to a customer as a result of a retail business transaction, three years after the obligation accrued.
(8) Any gift certificate or electronic gift card bearing an expiration date and remaining unredeemed or dormant for more than three years after the gift certificate or electronic gift card was sold is deemed abandoned.
The amount abandoned is deemed to be sixty percent (60%) of the unredeemed portion of the face value of the gift certificate or the electronic gift card.
(9) Amount owed by an insurer on a life or endowment insurance policy or an annuity that has matured or terminated, three years after the obligation to pay arose or, in the case of a policy or annuity payable upon proof of death, three years after the insured has attained, or would have attained if living, the limiting age under the mortality table on which the reserve is based.
(10) Property distributable by a business association in a course of dissolution, one year after the property becomes distributable.
(11) Property received by a court as proceeds of a class action, and not distributed pursuant to the judgment, one year after the distribution date.
(12) Property held by a court, government, governmental subdivision, agency, or instrumentality, one year after the property becomes distributable.
(13) Wages or other compensation for personal services, one year after the compensation becomes payable.
(14) Deposit or refund owed to a subscriber by a utility, one year after the deposit or refund becomes payable.
(15) Property in an individual retirement account, defined benefit plan, or other account or plan that is qualified for tax deferral under the income tax laws of Page 4 House Bill 294-Second Edition General Assembly Of North Carolina Session 2017 the United States, three years after the earliest of the date of the distribution or attempted distribution of the property, the date of the required distribution as stated in the plan or trust agreement governing the plan, or the date, if determinable by the holder, specified in the income tax laws of the United States by which distribution of the property must begin in order to avoid a tax penalty.
(16) All other property, five years after the owner's right to demand the property or after the obligation to pay or distribute the property arises, whichever first occurs.
(d) At the time that an interest in property is presumed abandoned under subsection (c) of this section, any other property right accrued or accruing to the owner as a result of the interest, and not previously presumed abandoned, is also presumed abandoned.
(e) Property is payable or distributable for purposes of this Chapter notwithstanding the owner's failure to make demand or present an instrument or document otherwise required to obtain payment or distribution, except as otherwise provided by the Uniform Commercial Code." SECTION 5.
Except as otherwise provided, this act is effective when it becomes law.
House Bill 294-Second Edition Page 5
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Action History

  1. Signed by Gov. 7/20/2017

  2. Ch. SL 2017-134

  3. Special Message Sent To House

  4. Special Message Received For Concurrence in S Com Sub

  5. Cal Pursuant 36(b)

  6. Added to Calendar

  7. Concurred In S/Com Sub

  8. Ordered Enrolled

  9. Ratified

  10. Pres. To Gov. 6/28/2017

  11. Amend Adopted A1

  12. Passed 2nd Reading

  13. Passed 3rd Reading

  14. Engrossed

  15. Reptd Fav

  16. Reptd Fav Com Substitute

  17. Com Substitute Adopted

  18. Re-ref Com On Rules and Operations of the Senate

  19. Withdrawn From Com

  20. Re-ref to Judiciary. If fav, re-ref to Rules and Operations of the Senate

  21. Regular Message Sent To Senate

  22. Regular Message Received From House

  23. Passed 1st Reading

  24. Ref To Com On Rules and Operations of the Senate

  25. Passed 2nd Reading

  26. Passed 3rd Reading

  27. Reptd Fav Com Substitute

  28. Cal Pursuant Rule 36(b)

  29. Placed On Cal For 04/26/2017

  30. Serial Referral To Finance Stricken

  31. Passed 1st Reading

  32. Ref to the Com on Regulatory Reform, if favorable, Finance

  33. Filed

Sponsors

Sponsorship breakdown

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0 sponsors · 5 co-sponsors · 174 not signed on

Sponsors (0)

None.

Co-sponsors (5)

Not signed on (174)

174 members have not signed on to this bill.

Show all 174 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

M11 Concur

Passed 115 Yea · 0 Nay · 5 Other
Party YeaNayPresentNot Voting
Unaffiliated 72004
Democratic 15000
Republican 27001
U 1000
Total 115005
% of votes cast 96%0%0%4%
How each member voted (120)
Member Party Vote
Lucas — Yea
McGrady — Yea
Michaux — Yea
Millis — Yea
Rogers — Yea
Szoka — Yea
Yarborough — Yea
Zachary — Yea
Autry — Yea
Black — Yea
Boswell — Yea
Burr — Yea
Conrad — Yea
Dobson — Yea
Dulin — Yea
Elmore — Not Voting
Farmer-Butterfield — Yea
Fisher — Yea
Floyd — Yea
Fraley — Yea
Garrison — Yea
Gill — Yea
Jordan — Yea
G.Adcock — Yea
L.Bell — Yea
Beasley — Yea
DuaneHall — Yea
G.Graham — Yea
Jackson — Yea
G.Martin — Yea
R.Moore — Yea
B.Richardson — Yea
W.Richardson — Yea
B.Turner — Yea
J.Bell — Yea
BertJones — Yea
Brawley — Yea
DestinHall — Yea
K.Hall — Yea
Johnson — Yea
Boles — Yea
Bradford — Yea
Bumgardner — Yea
Cleveland — Yea
Collins — Yea
Dollar — Yea
Earle — Yea
Faircloth — Yea
Goodman — Yea
Grange — Yea
Hanes — Yea
Hardister — Yea
Henson — Yea
Holley — Yea
Horn — Yea
Hunter — Yea
Hurley — Yea
Insko — Yea
Lewis — Yea
Terry — Yea
Wray — Yea
Malone — Yea
S.Martin — Yea
T.Moore(Speaker) — Yea
Stone — Yea
R.Turner — Yea
C.Graham — Not Voting
BrendenJones — Not Voting
McElraft — Yea
McNeill — Yea
Murphy — Yea
Presnell — Yea
Saine — Yea
Speciale — Yea
Steinburg — Not Voting
Williams — Yea
Amos L. Quick, III Democratic Yea
Becky Carney Democratic Yea
Cecil Brockman Democratic Yea
Cynthia Ball Democratic Yea
Dante Pittman Democratic Yea
Deb Butler Democratic Yea
Eric Ager Democratic Yea
Garland E. Pierce Democratic Yea
Graig Meyer Democratic Yea
Joe John Democratic Yea
Marcia Morey Democratic Yea
Mary Belk Democratic Yea
Pricey Harrison Democratic Yea
Robert T. Reives, II Democratic Yea
Shelly Willingham Democratic Yea
Carl Ford Republican Yea
Dean Arp Republican Yea
Dennis Riddell Republican Yea
Donna McDowell White Republican Yea
Donny Lambeth Republican Yea
Frank Iler Republican Yea
Harry Warren Republican Yea
Hugh Blackwell Republican Yea
Jay Adams Republican Yea
Jimmy Dixon Republican Yea
John A. Torbett Republican Yea
John M. Blust Republican Yea
John Sauls Republican Yea
Julia C. Howard Republican Yea
Kelly E. Hastings Republican Yea
Kevin Corbin Republican Yea
Larry C. Strickland Republican Yea
Larry W. Potts Republican Yea
Mark Brody Republican Yea
Mike Clampitt Republican Yea
Mitchell S. Setzer Republican Yea
Phil Shepard Republican Yea
Sam Watford Republican Yea
Sarah Stevens Republican Yea
Stephen M. Ross Republican Yea
Ted Davis, Jr. Republican Yea
W. Ted Alexander Republican Yea
William D. Brisson Republican Not Voting
Carla D. Cunningham U Yea

Official roll call →

Second Reading

Passed 48 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Republican 8002
Unaffiliated 33000
Democratic 7000
Total 48002
% of votes cast 96%0%0%4%
How each member voted (50)
Member Party Vote
Meredith — Yea
Randleman — Yea
Wade — Yea
Ballard — Yea
Barefoot — Yea
Brock — Yea
Bryant — Yea
Foushee — Yea
Harrington — Yea
Horner — Yea
D.Davis — Yea
J.Jackson — Yea
Smith — Yea
McKissick — Yea
VanDuyn — Yea
Brown — Yea
J.Davis — Yea
B.Jackson — Yea
Newton — Yea
Tucker — Yea
Barringer — Yea
Bishop — Yea
Curtis — Yea
Dunn — Yea
Edwards — Yea
Gunn — Yea
Krawiec — Yea
Pate — Yea
Rabin — Yea
Tarte — Yea
Tillman — Yea
Wells — Yea
Woodard — Yea
Amanda P. Cook Democratic Yea
Dan Blue Democratic Yea
Gladys A. Robinson Democratic Yea
Jay J. Chaudhuri Democratic Yea
Joyce Waddell Democratic Yea
Paul A. Lowe, Jr. Democratic Yea
Tracy Clark Democratic Yea
Bill Rabon Republican Yea
Carl Ford Republican Not Voting
Danny Earl Britt, Jr. Republican Yea
Michael V. Lee Republican Yea
Norman W. Sanderson Republican Yea
Phil Berger Republican Yea
Ralph Hise Republican Yea
Tom McInnis Republican Yea
W. Ted Alexander Republican Not Voting
Warren Daniel Republican Yea

Official roll call →

Subjects

finance
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Frequently asked questions

Who sponsors HB 294?
HB 294 is sponsored by Hurley, Faircloth, Boswell, Mike Clampitt (Republican), and Dante Pittman (Democratic).
What is the current status of HB 294?
This bill has been enacted into law. Introduced March 08, 2017. Enacted.
Where can I track HB 294?
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