SB 382 — AN ACT MODIFYING THE PROCESS FOR CLAIMING AND RETURNING UNCLAIMED PROPERTY HELD BY THE TREASURER.

5578618 7verification ofthat 18an Committeeobligor Billis No.382no whichlonger preventedin arrears, the agencydepartment fromshall matchingsend thea updatedstatement informationto such obligor, and such statement shall constitute proof to previouslya suppliedcreditor data.that such obligor is no longer in arrears as of the date of the statement.

A participating consumer reporting agency which receives such updated information from the department that an obligor no longer owes any overdue support shall record such information within thirty days of receipt of such notification unless the information wasina format which was unusable by theagency or containedanerror which prevented the agency from matching the updated information to previously supplied data.

(c) When any person redeems a winning lottery ticket worth five thousand dollars or more at the central office of the Connecticut Lottery Corporation, the Connecticut Lottery Corporation shall check the name and other identifying information of such person against a list of obligorssupplied by the Commissioner ofSocialServices.Ifsuchperson is included on the list of obligors, the Connecticut Lottery Corporation shall request confirmation from the Commissioner of Social Services that such person is in fact an obligor, and upon notification by the Commissioner of Social Services that money is due from any such person as a result of a claim for support which has been assigned to the state pursuant to section 17b-77, or is to be paid to the state acting by andthroughtheIV-Dagency,theConnecticut Lottery Corporationshall withhold from any lottery winnings payable to such person under the provisions of chapter 226 or chapter 229a the amount of such claim for support owed to an individual for any portion of support which has not beenassignedto thestate andthentheamountand thentheamount ofsuch claimfor support owed to the state, provided the Connecticut Lottery Corporation shall notify such person that (1) lottery winnings have been withheld as a result of the amount due for such support, and (2) such person has the right to a hearing before a hearing officer designated by the CommissionersSB382 of/ SocialFile ServicesNo. if such person contests the amount of theallegedclaimforsupport.TheConnecticutLotteryCorporationshall pay any such person in accordance with any decisions of the hearing officer or the court upon appeal of the hearing officer's decision.

(d)618 When8 anysSB382 personFile makes a claim for property transferred to the Treasurer under part III of chapter 32 having a value of five hundred LCO No.

5578618 8Commissioner of 18Social CommitteeServices Billif No.382such dollarsperson orcontests more, the Treasureramount shallof checktheallegedclaimforsupport.TheConnecticutLotteryCorporationshall thepay nameany andsuch otherperson identifyingin informationofsuchpersonagainstaccordance awith listany ofobligorssupplieddecisions byof the Commissionerhearing officer or the court upon appeal of Socialthe Services.hearing officer's decision.

(d) At least annually, for any person who owns property transferred to the Treasurer under part III of chapter 32 having a value of five hundred dollars or more, the Treasurer shall check the name and other identifying informationofsuchpersonagainst alist ofobligorssupplied by the Commissioner of Social Services.

[(d)] (e) Whenever an order of the Superior Court or a family support magistrate of this state, or an order of another state that has been registered in this state, for support of a minor child or children is issued and such payments have been ordered through the IV-D agency, and the obligor against whom such support order was issued owes overdue support under such order in the amount of five hundred dollars or more, the IV-D agency, as defined in subdivision (12) of subsection (b) of section 46b-231, or Support Enforcement Services of the Superior CourtsSB382 may/ notifyFile (1) any state or local agency or officer with authority (A) to hold assets or property for such obligor including, but not limited to, any property unclaimed or presumed abandoned under part III of chapter 32, or (B) to distribute benefits to such obligor including, but not limited to, unemployment compensation and workers' compensation, (2) any person having or expecting to have custody or control of or LCO No.

5578618 9 ofsSB382 18File CommitteeNo. Bill No.382 authority to distribute any amounts due such obligor under any judgment or settlement, (3) any financial institution holding assets of such obligor, and (4) any public or private entity administering a public or private retirement fund in which such obligor has an interest that suchobligor owesoverdue support inaIV-Dsupport case.

618 Court may notify (1) any state or local agency or officer with authority (A) to hold assets or property for such obligor including, but not limited to, any property unclaimed or presumed abandoned under part III of chapter 32, or (B) to distribute benefits to such obligor including, but not limited to, unemployment compensation and workers' compensation, (2) any person having or expecting to have custody or control of or authority to distribute any amounts due such obligor under any judgment or settlement, (3) any financial institution holding assets of such obligor, and (4) any public or private entity administering a public or private retirement fund in which such obligor has an interest that suchobligor owesoverdue support inaIV-Dsupport case.

or (3) upon issuance of a decision by the hearing officer or the court upon appeal of such officer's decision, to take such other action as may be ordered by such officer or such court, and such agency,sSB382 officer,/ person,File institutionNo. or entity shall forthwith comply with such notice received from the IV-D agency.

618 10 sSB382 File No.

618 agency, officer, person, institution or entity shall forthwith comply with such notice received from the IV-D agency.

LCO[(g)] No.(h) The Commissioner of Social Services shall adopt regulations, in accordance with chapter 54, setting forth procedures providing for adequate notice of (1) the right to a hearing before a hearing officer, and (2) procedures for a fair hearing for any person alleged by the commissioner to owe past-due or overdue child support to the state, or to an individual when the payments have been ordered payable to the state acting by and through the IV-D agency, if the commissioner has filed a lien on the property of such person or claimed an offset against money payable by the state to enforce a claim for payment of such past- dueoroverduesupport,orintendstoseizeanybenefits,amounts,assets or funds withheld in accordance with subsection [(d)] (e) of this section or report such overdue support to a consumer credit agency.

5578 10 of 18 Committee Bill No.382 [(g)] (h) The Commissioner of Social Services shall adopt regulations, in accordance with chapter 54, setting forth procedures providing for adequate notice of (1) the right to a hearing before a hearing officer, and (2) procedures for a fair hearing for any person alleged by the commissioner to owe past-due or overdue child support to the state, or to an individual when the payments have been ordered payable to the state acting by and through the IV-D agency, if the commissioner has filed a lien on the property of such person or claimed an offset against money payable by the state to enforce a claim for payment of such past- dueoroverduesupport,orintendstoseizeanybenefits,amounts,assets or funds withheld in accordance with subsection [(d)] (e) of this section or report such overdue support to a consumer credit agency.

(b) The commissioner may disclose (1) returns or return information to (A) an authorized representative of another state agency or office, upon written request by the head of such agency or office, when required in the course of duty or when there is reasonable cause to believe that any state law is being violated, or (B) an authorized representative of an agency or office of the United States, upon written requestbytheheadofsuchagencyoroffice,whenrequiredinthecourse of duty or when there is reasonable cause to believe that any federal law is being violated, provided no such agency or office shall disclose such returns or return information, other than in a judicial or administrative proceeding to which such agency or office is a party pertaining to the enforcement of state or federal law, as the case may be, in a form which can be associated with, or otherwise identify, directly or indirectly, a particular taxpayer except that the names and addresses of jurors or potentialsSB382 jurors/ andFile theNo. fact that the names were derived from the list of taxpayers pursuant to chapter 884 may be disclosed by the Judicial Branch;

618 11 sSB382 File No.

618 potential jurors and the fact that the names were derived from the list of taxpayers pursuant to chapter 884 may be disclosed by the Judicial Branch;

(3) LCOreturns No.or return information to tax officers of another state or of a Canadian province or of a political subdivision of such other state or province or of the District of Columbia or to any officer of the United States Treasury Department or the United States Department of Health and Human Services, authorized for such purpose in accordance with an agreement between this state and such other state, province, political subdivision, the District of Columbia or department, respectively, when required in the administration of taxes imposed under the laws of such other state, province, political subdivision, the District of Columbia or the United States, respectively, and when a reciprocal arrangement exists;

5578 11 of 18 Committee Bill No.382 returns or return information to tax officers of another state or of a Canadian province or of a political subdivision of such other state or province or of the District of Columbia or to any officer of the United States Treasury Department or the United States Department of Health and Human Services, authorized for such purpose in accordance with an agreement between this state and such other state, province, political subdivision, the District of Columbia or department, respectively, when required in the administration of taxes imposed under the laws of such other state, province, political subdivision, the District of Columbia or the United States, respectively, and when a reciprocal arrangement exists;

(8) real estate conveyance tax return information or controlling interest transfer tax return information to the town clerk or an authorized representative of the chief executive officer of a Connecticut municipalitysSB382 to/ whichFile theNo. information relates;

(9)618 estate12 taxsSB382 returnsFile and estate tax return information to the Probate Court Administrator or to the court of probate for the district within which a decedent resided at LCO No.

5578618 12municipality ofto 18 Committee Bill No.382 the date of the decedent's death, or within which the commissionerinformation contendsrelates; that a decedent resided at the date of the decedent's death or, if a decedent died a nonresident of this state, in the court of probate for the district within which real estate or tangible personal property of the decedent is situated, or within which the commissioner contends that real estate or tangible personal property of the decedent is situated;

(9) estate tax returns and estate tax return information to the Probate Court Administrator or to the court of probate for the district within which a decedent resided at the date of the decedent's death, or within which the commissioner contends that a decedent resided at the date of the decedent's death or, if a decedent died a nonresident of this state, in the court of probate for the district within which real estate or tangible personal property of the decedent is situated, or within which the commissioner contends that real estate or tangible personal property of the decedent is situated;

(16) to a tobacco product manufacturer that places funds into escrow pursuantsSB382 to/ theFile provisions of subsection (a) of section 4-28i, return information of a distributor licensed under the provisions of chapter 214 LCO No.

5578618 13 ofsSB382 18File CommitteeNo. Bill No.382 or chapter 214a, provided the information disclosed is limited to information relating to such manufacturer's sales to consumers within this state, whether directly or through a distributor, dealer or similar intermediary or intermediaries,ofcigarettes,asdefinedin section4-28h, and further provided there is reasonable cause to believe that such manufacturer isnot incompliance withsection4-28i;(17)returns,which shall not include a copy of the return filed with the commissioner, or return informationforpurposesofsection12-217z;(18)returnsorreturn information to the State Elections Enforcement Commission, upon written request by said commission, when necessary to investigate suspected violations of state election laws;

618 pursuant to the provisions of subsection (a) of section 4-28i, return information of a distributor licensed under the provisions of chapter 214 or chapter 214a, provided the information disclosed is limited to information relating to such manufacturer's sales to consumers within this state, whether directly or through a distributor, dealer or similar intermediary or intermediaries,ofcigarettes,asdefinedin section4-28h, and further provided there is reasonable cause to believe that such manufacturer isnot incompliance withsection4-28i;(17)returns,which shall not include a copy of the return filed with the commissioner, or return informationforpurposesofsection12-217z;(18)returnsorreturn information to the State Elections Enforcement Commission, upon written request by said commission, when necessary to investigate suspected violations of state election laws;

Sec.7.Subsections(c)and(d)ofsection17b-137ofthegeneralstatutes arerepealedandthefollowingissubstitutedarerepealedandthefollowingissubstitutedinlieuthereof(EffectiveJuly inlieuthereof(EffectiveJuly 1, 2023):

(c) (1) The IV-D agency and financial institutions, as defined in section 469A(d)(1) of the Social Security Act, doing business in this state shall enter into agreements to develop and operate a data match system, using automated data exchanges to the maximum extent feasible, in which each such financial institution is required to provide for each calendar quarter the name, record address, Social Security number or other taxpayer identification number and other identifying information for each noncustodial parent who maintains an account at such institutionsSB382 and/ whoFile owes past-due support, as identified by the IV-D LCO No.

5578618 14 ofsSB382 18File CommitteeNo. Bill No.382 agency by name and Social Security number or other taxpayer identification number.

618 institution and who owes past-due support, as identified by the IV-D agency by name and Social Security number or other taxpayer identification number.

and (B) constitute a certification by this state (i) of the amount of support under an order the payment of which is in arrears, and (ii) that LCOsSB382 / File No.

5578618 15 ofsSB382 18File CommitteeNo. Bill No.382 this state has complied with all procedural due process requirements applicable to each case.

618 this state has complied with all procedural due process requirements applicable to each case.

(NEW) (Effective July 1, 2023) Notwithstanding any other provision of part III of chapter 32 of the general statutes, uponwhere the payment or delivery of an amount of moneya or other property withreported aor valuetransferred ofon oneor hundredafter dollarsJuly or1, more2023, to the Treasurer under sectionssaid 3-part 62bhas toa 3-62g,value inclusive, of theone generalhundred statutesdollars foror depositmore inandtheapparentowner theisamunicipality,including Specialadepartment, Abandonedagency Propertyor Fund,division whereof the apparent owner is a municipality, includingthe aTreasurer department,shall, agencynot orlater divisionthan ofone ayear municipality,after thesuch Treasurerreport shallor transfer, (1) electronically transfer such amount to the municipality, and (2) notify the chief financial officer of such municipality, either electronically or by first-class mail,thatmail, that such money or other property is being transferred to the municipality under this section.

In the case of any such property that was reported or transferred to the Treasurer prior to July 1, 2023, the Treasurer shall make such transfer and notification as required under this section not later than January 1, 2024.

(a) When a conservator, guardian or trustee of a testamentary trust exhibitssSB382 his/ orFile her final account to the Probate Court for allowance, the LCO No.

5578618 16 ofsSB382 18File CommitteeNo. Bill No.382 court shall appoint a time and place for a hearing on the account and shall cause notice of the hearing to be given as it directs.

618 exhibits his or her final account to the Probate Court for allowance, the court shall appoint a time and place for a hearing on the account and shall cause notice of the hearing to be given as it directs.

LCOsSB382 / File No.

5578618 17 ofsSB382 18File Committee Bill No.

382618 (b) Notwithstanding any other provision of part III of chapter 32 of the general statutes, upon the payment or delivery of an amount of money or other property to the Treasurer under sections 3-62b to 3-62g, inclusive, of the general statutes for deposit in the Special Abandoned Property Fund, where the Treasurer can verify that the money or other property was collected on behalf of a nonprofit organization, the nonprofit organization may claim and be granted ownership of such money or property.

9 July 1, 2023 45a-179 July 1, 2023 Sec.

10 July 1, 2023 31-227(k) Sec.

11 July 1, 2023 New section Statement of Purpose:Legislative Commissioners:

ToIn reviseSection 3, the unclaimeddefinition propertyof process"claimant" inwas deleted since the state.term was not used, and a reference to "owner" was added for clarity.

[ProposedGAE deletionsJoint areFavorable enclosedSubst. in brackets.

ProposedsSB382 additions/ areFile indicatedNo. by underline, except underlined.]e entire text of a bill or resolution or a section of a bill or resolution is new, it is not Co-Sponsors:

SEN.618 18 sSB382 File No.

SAMPSON,618 16thThe Dist.;following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

REP.In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

MASTROFRANCESCO,Whenever 80thapplicable, Dist.agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

REP.OFA Fiscal Note State Impact:

CHEESEMAN,Agency 37thAffected Dist.Fund-Effect FY 24 $ FY 25 $ Labor Dept.

S.B.FF - Potential See Below See Below Revenue Loss Resources of the General Fund GF - Revenue See Below See Below Loss Note:

382GF=General LCOFund; No.

5578FF=Federal 18Funds ofMunicipal 18Impact:

Municipalities Effect FY 24 $ FY 25 $ Various Municipalities See Below See Below See Below Explanation The bill makes several changes to the State Treasurer's unclaimed property program, including:

(1) requires the Treasurer post the type and estimated value of unclaimed property on the searchable list, (2) establishes a "preponderance of the evidence" standard for determining property ownership, (3) gives the Treasurer access to all state data to the extent necessary for determining property ownership, (4) changes eligibility and amount thresholds for certain claim types.

These changes are expected to contribute to increased administrative costs, with some of the changes also expected to increase the amount of claims paid, as discussed below.

The bill is also expected to result in a loss of revenue to the Department of Labor and result in a potential revenue increase to various municipalities.

Impact to the Unclaimed Property Program sSB382 / File No.

618 19 sSB382 File No.

618 Changes to the unclaimed property program can have a fiscal impact throughbothchangesto theadministrative costsoftheprogramandthe amount of claims paid, both of which will impact the amount of net revenue made available to the General Fund annually.

Administrative Expenses Overall administrative expense increases to the program are anticipated to include one-time costs of between $4.4 million and $6.5 million in FY 24, primarily for costs associated with securing required access to sensitive, federally-regulated data, such as tax payer data and child support information.

The remainder of the one-time expenses relate to information technology expenses for both software and hardware, as well as updates to the existing web portal.

Ongoing administrative costs are anticipated to increase between $3 million and $4.2 million beginning in FY 24.

Over 80% of the ongoing costs are associated with salary and fringe for 25 new positions, including 6 paralegals, 9 claims examiners, 2 claims supervisors, 3 special funds administrators, 3 staff attorneys, and 2 information technology staff, who would collectively handle the increased claim volume, along with proactively seeking out property owners as required in the bill.

The non-personnel ongoing costs would support additional property-owner identification requirements, including data access, fraud detection and prevention, legal training, and address verification.

Increased Claims Paid Several ofthe changes in the bill are likely to result in higher amounts of claims paid in the future, including the required automatic payment to verified property owners, payments to individuals without supporting documentation, and increased notification of potential property owners outside the automatic repayments, including individuals, municipalities, and certain nonprofit organizations.

Current law requires automatic return of properties valued from $0 sSB382 / File No.

618 20 sSB382 File No.

618 to $2,500 when owners can be identified.

The impact of the expansion of automatic returns to include properties worth between $2,500 and $5,000 will be partiallyoffset by raising the minimum property value for automatic payments to those worth more than $10.

Overall, changes to eligibility are expected to result in a net revenue loss to the General Fund of unknown magnitude.

Increased claims are anticipated to impact both claims from the existing list ($1.3 billion as of the end of FY 22) and to future annual escheats (an average of $134 million annually from FY 13-FY 22).

Additional claims from the existing list are likely to have a larger near-term impact, but there will also be an ongoing impact based on future escheats and increased claims.

See Background below for additional context.

Impact to the Unemployment Benefits Program The bill requires anyone filing an initial unemployment claim to search the unclaimed property list, verify they have no unclaimed property listed, and certify that to the Department of Labor.

This provision is out of conformity with federal unemployment compensation law and therefore may result in the loss of up to $50 million of federal funds annually.

Municipal Impact The bill requires the treasurer to automatically pay certain abandoned property claims if the property's owner is a municipality.

To the extent this results in municipalities being paid for unclaimed property sooner, municipalities would see revenue gains more quickly.

Background Under current law, new unclaimed property is treated as a revenue to the state, with a portion of the revenue directed to the Citizen's Election Fund ($12.6 million in FY 22) and the remaining revenues deposited in the General Fund.

Claims paid to property owners and the 1C.G.S.

3-70a, as amended by P.A.

22-118 sSB382 / File No.

618 21 sSB382 File No.

618 administrative expenses of the program reduce net revenue available to the General Fund from the program.

Over the last 10 years, gross revenues have averaged approximately $134 million annually, while claims have averaged approximately $58 million annually, with most of the difference representing revenues accrued to the Citizen's Election Fund and the General Fund.

2 The total value of unclaimed property within the program is in flux, with new claims deducted and new escheats added regularly.

As of the close of FY 22, an estimated $1.3 billion of unclaimed property for over 9.6 million owners was part of the program.

Current estimates leave the total value of properties in the system worth $10 or less to be no more than $55 million, while properties valued between $2,500 and $5,000 have a combined value between $135 million and $275 million.

The Out Years The annualized ongoing fiscal impact identified above would continue into thefuture subject to thenumber and amount of unclaimed property deposits and claims and inflation.

Source:

https://portal.ct.gov/-/media/OTT/Newsroom/Reports/2022-Annual- Report-Final.pdf sSB382 / File No.

618 22 sSB382 File No.

618 OLR Bill Analysis sSB 382 AN ACT MODIFYING THE PROCESS FOR CLAIMING AND RETURNING UNCLAIMED PROPERTY HELD BY THE TREASURER.

SUMMARY By law, most property held or owed in this state remaining unclaimed by the owner is presumed abandoned after a specified amount of time passes and escheats to the state as abandoned (or unclaimed) property.

This bill makes various changes to these laws.

Specifically, the bill:

1.

requires the treasurer to post the type and estimated value of unclaimed property on the searchable unclaimed property list (i.e., CTBigList) (§ 1);

2.

sets a preponderance of the evidence standard for determining ownership of unclaimed property (§ 2);

3.

establishes an automatic return process for unclaimed property owed to municipalities valued at $100 or more (§ 8);

4.

modifies requirements for automatically returning unclaimed property to certain owners (§ 2);

5.

adds requirements for returning property valued at less than $5,000 to apparent owners (§ 2);

6.

gives the treasurer access to state agency data, including tax returns and return information, to return unclaimed property (§§ & 6);

7.

in certain instances, for unclaimed property valued over $500, sSB382 / File No.

618 23 sSB382 File No.

618 requires the treasurer to check with the Department of Revenue Services (DRS) and Department of Social Services (DSS) to determine if a property owner has tax liability or child support obligations and, in some cases, use unclaimed property to pay any obligations (§§ 4-5 & 7);

8.

requires executors and administrators of a deceased person’s estatetochecktheunclaimedpropertylist andverifynoproperty belongs to the estate before making a final account to probate court and certify they made the search under the penalty of false statement (§ 9);

9.

requires anyone filing an initial unemployment claim to search the unclaimed property list, verify they have no unclaimed property listed, and certify to the Department of Labor commissioner (a) that he or she has done so and (b) the search results, before filing (§ 10);

and 10.

authorizes nonprofit organizations to file an unclaimed property claim on property (a) belonging to a smaller unit of the organization or (b) collected on the organization’s behalf (§ 11).

The bill also makes conforming changes.

EFFECTIVE DATE:

July 1, 2023 AUTOMATIC RETURN TO MUNICIPALITIES (§§ 1 & 8) The bill requires the treasurer to automatically pay abandoned property claimsvalued at $100or more iftheproperty’s apparentowner is a municipality (including a municipal department, agency, or division).

The treasurer must electronically transfer these amounts to the municipality within one year of the property’s report or transfer to the treasurer.

The treasurer must notify the municipality’s chief financial officer of the property’s transfer electronically or by first-class mail.

For unclaimed property reported or transferred to the treasurer before July 1, 2023, he must make the transfer and notification by January 1, 2024.

sSB382 / File No.

618 24 sSB382 File No.

618 Under the bill, a municipality is a town;

city;

borough;

consolidated town and city;

consolidated town and borough;

metropolitan district;

regional school district;

fire, sewer, and other districts authorized to make appropriations or levy taxes (i.e., special taxing districts);

and other municipal corporation or authority authorized to issue bonds, notes, or other obligations under state law provisions.

Current law generally requires the treasurer to notify by first-class mail each person (1) reported as the apparent owner of abandoned property during the preceding calendar year and (2) for whom the holder reported a last-known address.

The notice must include the property’s amount and description and how the owner may verify ownership and claim it.

The bill excludes from this notification requirement any municipality paid, or that will be paid, an automatic payment as described above.

AUTOMATIC RETURN TO INDIVIDUALS (§ 2) Under current law, the treasurer must automatically pay abandoned property claims valued at less than $2,500 to individuals if he (1) has determined the individual is the property’s sole owner and (2) is satisfied he has this person’s current address.

The bill increases the maximum value of claims subject to this automatic payment requirement to $5,000 and excludes any property claims valued at $10 or less.

The bill also requires the treasurer to send notice via first-class mail to an owner of unclaimed property valued at $5,000 or more, but otherwise meets the conditions for automatic return.

CLAIMS FOR CERTAIN PROPERTY VALUED AT LESS THAN $5,000 (§ 2) Under current law, anyone claiming an interest in abandoned property must file a certified claim with the treasurer establishing that they are entitled to recover it.

The bill makes an exception to this requirement for property (1) valued at less than $5,000 and (2) with only one apparent owner whose identity the treasurer can reasonably identify using data available to him.

Under the bill, the treasurer (1) sSB382 / File No.

618 25 sSB382 File No.

618 must provide an electronic form on his website for filing these claims, (2) may not require claimants to provide any supporting documentation, and (3) must require anyone filing a claim that does not meet these requirements to file a certified claim.

DATA SHARING (§§ 3 & 6) The bill grants the treasurer access to any data held or controlled by a state agency to the extent the data is needed to help return unclaimed property to its owner, including taxpayer data and corporate registration information.

Under the bill, a state agency is any department, board, council, commission, institution, or other executive branch agency of state government, including each constituent unit and each public higher education institution.

As necessary, the treasurer may enter into a memorandum of understanding with any state agency to facilitate this data sharing.

Additionally, the bill allows the revenue services commissioner to disclose tax returns and return information (see BACKGROUND) to the treasurer for these purposes.

WITHHOLDING UNCLAIMED PROPERTY Child Support Obligations (§§ 5 & 7) The bill requires the treasurer, at least annually, to check a DSS- supplied list of delinquent child support obligors against the names and other identifying information of all owners of property valued at $500 or more on the unclaimed property list).

Under existing law, DSS must disclose to the treasurer information necessary to identify child support obligors who owe overdue child support (CGS § 17b-90(b)(11)).

If an owner is on this list, the treasurer must ask DSS to confirm that the person is an obligor.

If confirmed, the treasurer must withhold from any funds payable to the person from the unclaimed property program an amount to cover the funds owed (1) to a person by the obligor, and if any excess (2) by the state on the obligor’s behalf.

The treasurer must notify the obligor of the withheld funds and the obligor’s right to a hearing with a DSS- sSB382 / File No.

618 26 sSB382 File No.

618 designated hearing officer to contest the support claim.

The treasurer must abide by the hearing officer’s decision or, upon appeal, the court’s decision.

Tax Obligations (§ 4) Under the bill, when a person claims unclaimed property valued at $500 or more, the treasurer must check if the person is on a DRS- supplied list of delinquent taxpayers.

If the person is on this list, after deductions for any child support obligations (see above), the treasurer must deduct and withhold from the unclaimed property claim the amount of any owed taxes, penalties, and interest.

The treasurer must then notify the DRS commissioner of the amount withheld and pay DRS as directed by the commissioner.

The bill also authorizes the DRS commissioner to disclose certain information to the treasurer to facilitate this process.

Specifically, the commissioner may disclose the (1) name and other information needed to identify a person owing any taxes, penalties, or interest, if the (a) person has been delinquent for more than 30 days and (b) taxes are not the subject of a timely administrative appeal and (2) amount of taxes, penalties, and interest owed.

SEARCH BY EXECUTORS AND ADMINISTRATORS (§ 9) Under the bill, an executor or administrator of a deceased person’s estate must search for unclaimed property owed to the person’s estate.

Before making a final account to the court of the estate’s distribution of assets and payment of any obligations, the executor or administrator must certify to the court, under penalty of false statement, (1) they made the search and (2) the search results.

By law, false statement is a class A misdemeanor punishable by up to one year imprisonment, up to a $2,000 fine, or both (CGS § 53a-157b).

NONPROFIT ORGANIZATIONS (§ 11) Under the bill, if an apparent owner of unclaimed property is a smaller unit (i.e., branch, chapter, or constituent organization) of a nonprofit organization, the organization may claim ownership sSB382 / File No.

618 27 sSB382 File No.

618 provided the (1) smaller unit has not claimed the property and (2) organization serves all or a portion of the same community as the smaller unit.

The nonprofit organization may also claim the property if the treasurer can verify the money or property was collected on the organization’s behalf.

BACKGROUND Tax Returns and Return Information By law, a “return” is any of the following filed with the DRS commissioner by, on behalf of, or with respect to, anyone:

(1) a tax or information return;

(2) an estimated tax declaration;

(3) a refund claim;

or (4) any license, permit, registration, or other application.

The term also covers amendments or supplements, including supporting schedules, attachments, or lists that supplement or are part of a filed return.

“Return information” includes:

1.

a taxpayer’s identity;

2.

the nature, source, or amount of the taxpayer’s income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability, tax collected or withheld, tax under- or over-reporting, or tax payments;

and 3.

any other data received, recorded, prepared, or collected by or furnished to the DRS commissioner about (a) a return or (b) any determination of liability for a tax, penalty, interest, fine, forfeiture, or other imposition or offense (CGS § 12-15(h)(1) & (2)).

COMMITTEE ACTION Government Administration and Elections Committee Joint Favorable Substitute Yea 19 Nay 0 (03/27/2023) sSB382 / File No.

618 28