SB 75 — Establishes the procedure for pursuing the redemption of unclaimed United States savings bonds by the State Treasurer. (BDR 10-478)

REQUIRESSenate TWO-THIRDSBill MAJORITYNo. VOTE (§ 1) S.B.

7575–Committee Son ENATEJudiciary BCHAPTER.......... ILLN O.

75–COMMITTEE ON JUDICIARY (O NB EHALF OF THE STATE T REASURER ) PREFILED N OVEMBER 20, 2018 ____________ Referred to Committee on Judiciary SUMMARY—Establishes the procedure for pursuing the redemption of unclaimed United States savings bonds by the State Treasurer.

(BDR 10-478) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

Yes.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

LegislativeLegUnder Counsel’sexisting Digest:law, this State has enacted the Uniform Unclaimed Property Act.

Under existing law, this State has enacted the Uniform Unclaimed Property Act.

(Chapter 120A of NRS) Under existing law, the State Treasurer serves as theThis bill provides that 3 years after a United States savings bond becomes unclaimed property in this State, the savingsAdministrator bondof escheatsUnclaimed toProperty. the State, and all property rights and legal title to, and ownership of, the savings bond and its proceeds vest in the State.

This(NRS bill226.110) establishesunclaimed theproperty procedurein tothis obtainState, the judgmentsavings ofbond aescheats courtto thatthe aState, Unitedand Statesall savingsproperty bondrights hasand escheatedlegal totitle to, and ownership of, the Statesavings bond and thatits all proceeds havevest vested in the State.

This bill requiresestablishes the Stateprocedure Treasurerto obtain the judgment of a court that a United States savings bond has escheated to redeemthe State and that all property rights and legal title to, and ownership of, the savings bond and its United States savings bonds that have escheated to the State, and to deposit thetheeem proceeds of such redemptions, after paying the costs incidental to collecting and - *SB75* – 2 – recovering the proceeds, in the State General Fund for credit to the Abandoned Property Trust Account.

This bill also authorizes the Administrator, in his or her discretion, to pay a claim filed by certain persons who have filed a claim to the proceeds of such escheated and redeemed United States savings bonds.

claimEXPLANATION to– theMatter THEin PEOPLEbolded OFitalics THEis STATEnew; OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

and (b)- Is80th unclaimedSession pursuant(2019) to– the2 provisions– of subsection 3 of NRS 120A.500 for 3 years after the date of maturity.maturity.bsection 3 of 2.

2.

Except as otherwise provided in this subsection, if within 180 days after a United States savings bond is presumed abandoned pursuant to subsection 1, no claim to the bond has been filed with the Administrator, the Administrator shall commence a civil action in the First Judicial District Court, or in any other court of competent jurisdiction, for a determination that the bond has escheated to this State.

The Administrator may postpone the commencement of such an action until the Administrator determines that sufficient United States savings bonds have accumulated in his or her custody to justify thethengs expense of such a proceeding.

If, in a civil action brought pursuant to subsection 3, no person files a claim to the United States savings bond or appears at a hearing to substantiate his or her claim, or if the court, after considering the claim, determines that the claimant is not entitled to the property claimed by the claimant, the court shall, if satisfied - *SB75* – 3 – by evidence that the Administrator has substantially complied with the laws of this State, enter a judgment that:

and (b) All property rights and legal title to, and ownership of, the United States savings bond and proceeds from the bond, including the all rights, powers and privileges of survivorship of any owner, co- owner or beneficiary, have vested solely in the State of Nevada.

After the Administrator has paid from the proceeds from the redemption of a United States savings bond all costs incident to the collection and recovery of the proceeds, the Administrator shall deposit the remainder of the proceeds in the State General Fund for credit to - 80th Session (2019) – 3 – the Abandoned Property Trust Account created by NRS 120A.620.

7.contrary:withstanding any provision of NRS 120A.640 to the (a) Any person, excluding another state, claiming a United States savings bond which has escheated to the State of Nevada pursuant to this section, or for the proceeds from such a bond, may file a claim with the Administrator.

Notwithstanding any provision of NRS 120A.640 to the contrary:

(a) Any person, excluding another state, claiming a United States savings bond which has escheated to the State of Nevada pursuant to this section, or for the proceeds from such a bond, may file a claim with the Administrator.

Before making a deposit, the Administrator shall record the name and last known address of each person appearing from the holders’ reports to be entitled to the abandoned property and the name and last known address of each insured person or annuitant, and with respect to each policy or contract listed in the report of an - *SB75* – 4 – insurance company, its number, the name of the company and the amount due.

- 80th Session (2019) – 4 – 5.

(a) The first $7,600,000 each year must be transferred to the MillenniumMil(b) ScholarshipThe Trustremainder Fundmust createdbe bytransferred to the State General Fund, but remains subject to the valid claims of holders pursuant to NRS 396.926.120A.590 and owners pursuant to NRS 120A.640 [.] and any claims approved for payment by the Administrator pursuant to section 1 of this act.

(b) The remainder must be transferred to the State General Fund, but remains subject to the valid claims of holders pursuant to NRS 120A.590 and owners pursuant to NRS 120A.640 [.] and any claims approved for payment by the Administrator pursuant to section 1 of this act.

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