HB 2623 — appropriation; Mohave county substations

G.

If the department is required or permitted ALLOWED to disclose confidential information, it may charge the person or agency that requests the information for the reasonable cost of the department's services.

H.

A disclosure of confidential information in violation of this section is a class 1 misdemeanor.

A knowing disclosure of confidential information in violation of this section is a class 6 felony.

I.

The provisions of this section apply to independent auditors hired by the department to enforce the provisions of this chapter and chapter 3.1 of this title.

J.

A person, including a former employee, agent or independent auditor of the department or office of administrative hearings or a person previously having an administrative duty for the department or the office of administrative hearings, who has received confidential information while an employee, agent or independent auditor of the department or the office of administrative hearings, shall not disclose that information except as provided in this section.

K.

For the purposes of this section:

1.

"Claimant" means a person or entity that claims to have a property interest in the item of property that is presumed abandoned pursuant to this chapter.

2.

"Confidential information" includes:

(a) Reports filed by holders of property presumed abandoned under this chapter, a claimant's application and documents submitted to support a claim and information discovered by the department concerning claims, and claimants, holder reports or holders.

Confidential information also (b) Includes Information supplied at the special request of the department which THAT the claimant or holder requests to be held confidential, whether a holder or report was, is being or will be subject to examination, investigation or collection and data received by, recorded by, prepared by, furnished to or collected by the department with respect to the existence or possible existence of a liability of any holder for unclaimed property.

- 2 - H.B.

2623 Sec.

2.

Section 44-327, Arizona Revised Statutes, is amended to read:

44-327.

Agreement to recover property A.

The following are void and unenforceable:

1.

A.

An agreement TO RECOVER PROPERTY THAT IS entered into by an owner A CLAIMANT with another person if the primary purpose of that agreement is to locate, deliver, recover or assist in the recovery of property that is presumed abandoned, if the agreement was entered into during the period commencing on the date the property was presumed abandoned and extending to a time that is twenty-four months after the date that the property is paid or delivered to the department.

This paragraph does not apply to an owner's agreement with an attorney to file a claim relating to identified property or to contest the department's denial of a claim.

IS ENFORCEABLE IF ALL OF THE FOLLOWING APPLY:

1.

THE AGREEMENT IS IN WRITING IN AT LEAST TEN-POINT TYPE.

2.

THE AGREEMENT LISTS THE UNCLAIMED PROPERTY ACCOUNT NUMBERS BEING CLAIMED.

3.

THE AGREEMENT DESCRIBES THE SERVICES TO BE PERFORMED.

4.

THE AGREEMENT IS SIGNED BY THE CLAIMANT.

5.

THE AGREEMENT STATES THE VALUE OF THE PROPERTY, IF AVAILABLE, BEFORE AND AFTER THE FEE OR OTHER COMPENSATION IS DEDUCTED.

THENotwithstanding FEEsection OR35-190, PAYMENTArizona AGREEDRevised ONStatutes, MAYthe NOTappropriation BEmade MOREin THANsubsection TWENTYA PERCENTof OFthis THEsection VALUEdoes OFnot THElapse RECOVERABLEuntil PROPERTYthe THATpurpose ISfor REPORTEDwhich TOthe THEappropriation DEPARTMENT.is made is accomplished or abandoned unless the appropriation stands for a full fiscal year without an expenditure or encumbrance.

THIS- SUBSECTION1 DOES- NOT APPLY TO RECOVERY OF ACCOUNTS THAT REQUIRE JUDICIAL DETERMINATION OF OWNERSHIP TO ESTABLISH ENTITLEMENT.

2.

C.

A provision in an agreement that requires an owner A CLAIMANT to pay compensation that includes a portion of mineral proceeds that are not presumed abandoned or the underlying minerals, if the primary purpose of the agreement is to locate, deliver, recover or assist in the recovery of mineral proceeds that are presumed abandoned, IS VOID.

B.

If an owner enters into an agreement that is not void pursuant to this section and the primary purpose of that agreement is to locate, deliver, recover or assist in the recovery of property reported to the department, the agreement is:

1.

Enforceable if the agreement is in writing, clearly states the nature of the property and the services to be performed, is signed by the apparent owner and states the value of the property before and after the fee or other compensation has been deducted.

The fee or payment agreed on shall not be more than thirty per cent of the value of the recoverable property reported to the department.

2.

D.

AN AGREEMENT THAT IS SUBJECT TO SUBSECTION B OF THIS SECTION IS unenforceable except by the owner CLAIMANT if the agreement provides for compensation that is more than thirty per cent TWENTY PERCENT of the value of the recoverable property reported to the department.

THIS - 3 - H.B.

2623 SUBSECTION DOES NOT APPLY TO THE RECOVERY OF ACCOUNTS THAT REQUIRES A JUDICIAL DETERMINATION OF OWNERSHIP TO ESTABLISH ENTITLEMENT.

C.

E.

An owner who A CLAIMANT OR THE DEPARTMENT ON THE CLAIMANT'S BEHALF MAY MAINTAIN AN ACTION TO REDUCE COMPENSATION IF BOTH OF THE FOLLOWING APPLY:

1.

THE CLAIMANT has agreed to pay compensation that is more than thirty per cent TWENTY PERCENT of the value of the recoverable property reported to the department, or the department on behalf of the owner, may maintain an action to reduce the compensation.

THIS PARAGRAPH DOES NOT APPLY TO THE RECOVERY OF ACCOUNTS THAT REQUIRES A JUDICIAL DETERMINATION OF OWNERSHIP TO ESTABLISH ENTITLEMENT.

2.

THE AGREEMENT IS SUBJECT TO SUBSECTION B OF THIS SECTION.

F.

The court may award reasonable attorney fees to an owner A CLAIMANT who prevails in the action BROUGHT UNDER SUBSECTION B OF THIS SECTION.

This section does not prohibit an owner A CLAIMANT from asserting that an agreement is invalid on grounds other than compensation.

Sec.

3.

Title 44, chapter 3, article 1, Arizona Revised Statutes, is amended by adding section 44-327.01, to read:

44-327.01.

Unclaimed property account information;

locators;

registration;

fees;

violation;

classification;

filing of written agreement;

fund A.

ON WRITTEN REQUEST, THE DEPARTMENT SHALL PROVIDE ALL UNCLAIMED PROPERTY ACCOUNT INFORMATION FOR ALL UNCLAIMED ACCOUNTS TO A LOCATOR THAT IS REGISTERED PURSUANT TO THIS SECTION.

THE DEPARTMENT SHALL PROVIDE THE UNCLAIMED PROPERTY ACCOUNT INFORMATION IN A SEARCHABLE ELECTRONIC OR DIGITAL FORMAT.

THE UNCLAIMED PROPERTY ACCOUNT INFORMATION SHALL INCLUDE ALL OF THE FOLLOWING:

1.

THE NAME OF THE APPARENT OWNER.

2.

THE COMPLETE LAST KNOWN ADDRESS OF THE APPARENT OWNER AS REPORTED BY THE HOLDER.

3.

THE RELATIONSHIP CODE, IF ANY.

4.

THE TYPE OF PROPERTY.

5.

THE CASH VALUE OF THE PROPERTY.

6.

IF THE PROPERTY IS SECURITIES OR MUTUAL FUND SHARES, THE NUMBER OF SHARES OR ITEMS AND THE EXCHANGE TICKER SYMBOL OR FUND NAME, IF REPORTED.

7.

THE YEAR THAT THE PROPERTY WAS REPORTED TO THE DEPARTMENT.

8.

THE NAME AND CONTACT INFORMATION OF THE HOLDER.

9.

A GENERAL DESCRIPTION OF THE SAFE DEPOSIT BOX CONTENTS AND THE LIQUIDATION AMOUNT, IF APPLICABLE.

10.

THE LAST CONTACT DATE WITH THE APPARENT OWNER.

B.

A LOCATOR MUST REGISTER WITH THE DEPARTMENT IN A FORM AND MANNER DETERMINED BY THE DEPARTMENT AND SHALL PAY A REGISTRATION FEE TO THE DEPARTMENT IN AN AMOUNT TO BE DETERMINED BY THE DIRECTOR.

ON THE - 4 - H.B.

2623 REGISTRATION APPLICATION, AN APPLICANT SHALL PROVIDE THE APPLICANT'S PRIMARY BUSINESS ADDRESS AND TELEPHONE NUMBER AND THE NAME, TELEPHONE NUMBER AND EMAIL ADDRESS OF THE INDIVIDUAL WHO WILL BE THE PRIMARY POINT OF CONTACT WITH THE DEPARTMENT.

AN APPLICANT IS INELIGIBLE FOR REGISTRATION IF WITHIN THE IMMEDIATELY PRECEDING TEN-YEAR PERIOD THE APPLICANT WAS CONVICTED OF A FELONY INVOLVING DISHONESTY, DECEIT, FRAUD OR A BREACH OF FIDUCIARY DUTY.

C.

LOCATOR REGISTRATION IS VALID FOR FOUR YEARS.

THE LOCATOR MAY RENEW ITS REGISTRATION BY SUBMITTING A RENEWAL APPLICATION IN A MANNER THAT IS PRESCRIBED BY THE DEPARTMENT AND SUBMITTING A RENEWAL FEE IN AN AMOUNT TO BE DETERMINED BY THE DIRECTOR.

THE DEPARTMENT SHALL DEPOSIT, PURSUANT TO SECTIONS 35-146 AND 35-147, ALL REGISTRATION AND RENEWAL FEES COLLECTED PURSUANT TO THIS SECTION IN THE LOCATOR REGISTRATION FUND ESTABLISHED BY THIS SECTION.

D.

A LOCATOR THAT RECEIVES UNCLAIMED PROPERTY ACCOUNT INFORMATION FROM THE DEPARTMENT UNDER THIS SECTION MAY NOT DISTRIBUTE THAT INFORMATION TO OTHER LOCATORS OR PERSONS, OTHER THAN THE OWNER, FOR COMPENSATION.

E.

WHEN A PROPERTY LOCATOR INITIALLY COMMUNICATES WITH A POTENTIAL CUSTOMER, THE PROPERTY LOCATOR MUST DISCLOSE THAT THE FEE ANY PROPERTY LOCATOR CHARGES IS A NEGOTIABLE RATE AND IS CAPPED AT TWENTY PERCENT PURSUANT TO THIS SECTION.

F.

AN AGREEMENT BETWEEN A PROPERTY LOCATOR AND A CUSTOMER MUST INCLUDE A DISCLOSURE AGREEMENT THAT IS SIGNED BY THE CUSTOMER AND THAT IS IN ITS OWN DOCUMENT WITHOUT ANYTHING ELSE ON THE DOCUMENT.

THE DISCLOSURE AGREEMENT MUST STATE THE FOLLOWING IN AT LEAST TWENTY-FOUR POINT TYPE:

THE FEE THAT ANY PROPERTY LOCATOR CHARGES IS A NEGOTIABLE RATE THAT IS CAPPED AT TWENTY PERCENT PURSUANT TO SECTION 44-327, ARIZONA REVISED STATUTES.

G.

A PERSON WHO DISCLOSES CONFIDENTIAL INFORMATION IN VIOLATION OF THIS SECTION IS GUILTY OF A CLASS 1 MISDEMEANOR.

A PERSON WHO KNOWINGLY DISCLOSES CONFIDENTIAL INFORMATION IN VIOLATION OF THIS SECTION IS GUILTY OF A CLASS 5 FELONY.

H.

IF AN OWNER HAS ENTERED INTO A WRITTEN AGREEMENT THAT AUTHORIZES A REGISTERED LOCATOR TO CLAIM THE UNCLAIMED PROPERTY ON THE OWNER'S BEHALF OR IF THE OWNER HAS SOLD THE RIGHT TO CLAIM THE UNCLAIMED PROPERTY TO A LOCATOR, THE DEPARTMENT SHALL DISTRIBUTE THE PROPERTY OR MONIES IN ACCORDANCE WITH THAT WRITTEN AGREEMENT.

THE OWNER MUST EXECUTE THE AGREEMENT AND THE LOCATOR MUST FILE THE AGREEMENT WITH THE DEPARTMENT WHEN A LOCATOR FILES A CLAIM ON THE OWNER'S BEHALF.

I.

THE LOCATOR REGISTRATION FUND IS ESTABLISHED CONSISTING OF MONIES RECEIVED FROM LOCATOR REGISTRATION AND RENEWAL FEES COLLECTED PURSUANT TO THIS SECTION.

THE DEPARTMENT SHALL ADMINISTER THE FUND.

THE MONIES IN THE FUND SHALL BE USED TO MONITOR LOCATORS AS PROVIDED UNDER THIS CHAPTER.

MONIES IN THE FUND ARE CONTINUOUSLY APPROPRIATED.

- 5 - H.B.

2623 Sec.

4.

Legislative intent The legislature intends that the initial registration fee and the registration renewal fee for a locator pursuant to section 44-327.01, Arizona Revised Statutes, as added by this act, not exceed $100 for each registration and for each renewal.

- 6 -