68th Legislature HB 136.1
1 HOUSE BILL NO. 136
2 INTRODUCED BY M. BERTOGLIO
3 BY REQUEST OF THE DEPARTMENT OF REVENUE
4
5 A BILL FOR AN ACT ENTITLED: “AN ACT REVISING LAWS RELATED TO UNCLAIMED PROPERTY;
6 PROVIDING DEFINITIONS; PROVIDING WHEN ADDITIONAL CATEGORIES OF PROPERTY ARE
7 PRESUMED ABANDONED; REQUIRING THE HOLDER OF CERTAIN ABANDONED PROPERTY TO
8 LIQUIDATE THE PROPERTY AND REMIT THE PROCEEDS TO THE DEPARTMENT OF REVENUE;
9 PROVIDING FOR AN UNCLAIMED PROPERTY WEBSITE TO BE RUN BY THE DEPARTMENT OF
10 REVENUE; PROVIDING FOR THE CONFIDENTIALITY OF PERSONAL INFORMATION; AND AMENDING
11 SECTIONS 70-9-801, 70-9-802, 70-9-803, 70-9-808, 70-9-809, 70-9-810, 70-9-812, 70-9-815, 70-9-820, 70-9-
12 827, AND 70-9-829, MCA.”
13
14 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
15
16 Section 1. Section 70-9-801, MCA, is amended to read:
17 "70-9-801. Short title. This part may be cited as the "UniformMontana Revised Unclaimed Property
18 Act"."
19
20 Section 2. Section 70-9-802, MCA, is amended to read:
21 "70-9-802. Definitions. In this part, unless the context requires otherwise, the following definitions
22 apply:
23 (1) "Administrator" means the department of revenue provided for in 2-15-1301.
24 (2) "Administrator's agent" means a person with which the administrator contracts to conduct an
25 examination under 70-9-820 on behalf of the administrator. The term includes an independent contractor
26 working for the person and each individual participating in the examination on behalf of the person or
27 contractor.
28 (2)(3) "Apparent owner" means a person whose name appears on the records of a holder as the
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1 person entitled to property held, issued, or owing by the holder.
2 (3)(4) "Business association" means a corporation, joint-stock company, investment company, other
3 than an investment company registered under the Investment Company Act of 1940, 15 U.S.C. 80a-1 through
4 80a-64, as amended, partnership, unincorporated association, joint venture, limited liability company, business
5 trust, trust company, land bank, safe deposit company, safekeeping repository, financial organization, federally
6 chartered entity, insurance company, mutual fund, utility, sole proprietorship, or other business entity consisting
7 of one or more persons, whether or not for profit.
8 (4)(5) "Domicile" means the state of incorporation of a corporation and the state of the principal place
9 of business of a holder other than a corporation.
10 (6) "Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical,
11 electromagnetic, or similar capabilities.
12 (7) "Electronic mail" means a communication by electronic means that is automatically retained
13 and stored and may be readily accessed or retrieved.
14 (5)(8) "Financial organization" means a savings and loan association, bank, banking organization, or
15 credit union.
16 (9) "Game-related digital content" means digital content that exists only in an electronic game or
17 an electronic game platform. The term includes:
18 (a) game-play currency, such as a virtual wallet, even if it is denominated in United States
19 currency; and
20 (b) the following, if for use or redemption only within the electronic game or the electronic game
21 platform or another electronic game or electronic game platform:
22 (i) points, sometimes referred to as gems, tokens, gold, or similar names; and
23 (ii) digital codes.
24 (c) The term does not include an item that the issuer permits to be redeemed for use outside of an
25 electronic game or an electronic game platform for money or goods or services that have more than minimal
26 value or otherwise monetizes for use outside of an electronic game or an electronic game platform.
27 (6)(10) "Gift certificate" has the meaning provided in 30-14-102.
28 (7)(11) "Holder" means a person obligated to hold for the account of, or deliver or pay to, the owner
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1 property that is subject to this part.
2 (8)(12) "Insurance company" means an association, corporation, or fraternal or mutual benefit
3 organization, whether or not for profit, engaged in the business of providing life endowments, annuities, or
4 insurance, including accident, burial, casualty, credit life, contract performance, dental, disability, fidelity, fire,
5 health, hospitalization, illness, life, malpractice, marine, mortgage, surety, wage protection, and workers'
6 compensation insurance.
7 (13) (a) "Loyalty card" means a record given without direct monetary consideration under an award,
8 reward, benefit, loyalty, incentive, rebate, or promotional program that may be used or redeemed only to obtain
9 goods or services or a discount on goods or services.
10 (b) The term does not include a record that may be redeemed for money or otherwise monetized
11 by the issuer.
12 (9)(14) "Mineral" means gas; oil; coal; other gaseous, liquid, and solid hydrocarbons; oil shale; cement
13 material; sand and gravel; road material; building stone; chemical raw material; gemstone; fissionable and
14 nonfissionable ores; colloidal and other clay; steam and other geothermal resource; or any other substance
15 defined as a mineral by the law of this state.
16 (10)(15) "Mineral proceeds" means amounts payable for the extraction, production, or sale of minerals
17 or, upon the abandonment of those payments, all payments that become payable after abandonment. The term
18 includes amounts payable:
19 (a) for the acquisition and retention of a mineral lease, including bonuses, royalties, compensatory
20 royalties, shut-in royalties, minimum royalties, and delay rentals;
21 (b) for the extraction, production, or sale of minerals, including net revenue interests, royalties,
22 overriding royalties, extraction payments, and production payments; and
23 (c) under an agreement or option, including a joint operating agreement, unit agreement, pooling
24 agreement, and farmout agreement.
25 (11)(16) (a)"Money order" means a payment order for a specified amount of money. The term includes
26 an express money order and a personal money order, on which the remitter is the purchaser.
27 (b) The term does not include a bank money order or any other instrument sold by a financial
28 organization if the seller has obtained the name and address of the payee.
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1 (17) "Municipal bond" means a bond or evidence of indebtedness issued by a municipality or other
2 political subdivision of a state.
3 (12)(18) "Owner" means a person who has a legal or equitable interest in property subject to this part
4 or the person's legal representative. The term includes a depositor in the case of a deposit, a beneficiary in the
5 case of a trust other than a deposit in trust, and a creditor, claimant, or payee in the case of other property, and
6 the lawful bearer of a record that may be used to obtain money, a reward, or a thing of value.
7 (13)(19) "Person" means an individual, business association, financial organization, estate, trust,
8 government, governmental subdivision, agency, or instrumentality or any other legal or commercial entity,
9 whether or not for profit.
10 (20) "Personal information" means:
11 (a) information that identifies or reasonably can be used to identify an individual, such as a first
12 and last name in combination with the individual's:
13 (i) social security number or other government-issued number or identifier;
14 (ii) date of birth;
15 (iii) home or physical address;
16 (iv) electronic mail address or other online contact information or internet provider address;
17 (v) financial account number or credit or debit card number;
18 (vi) biometric data, health or medical data, or insurance information; or
19 (vii) passwords or other credentials that permit access to an online account or other account; and
20 (b) personally identifiable financial or insurance information, including nonpublic personal
21 information defined by applicable federal law.
22 (14)(21) (a) "Property" means tangible property described in 70-9-804 or a fixed and certain interest in
23 intangible property that is held, issued, or owed in the course of a holder's business or, except as provided in
24 subsection (14)(b) (21)(b), by a government, governmental subdivision, agency, or instrumentality and all
25 income or increments from the property. The term includes property that is referred to as or evidenced by:
26 (i) money, virtual currency, check, draft, deposit, interest, or dividend;
27 (ii) credit balance, customer's overpayment, gift certificate, security deposit, refund, credit
28 memorandum, unpaid wage, unused ticket for which the issuer has an obligation to provide a refund, mineral
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1 proceeds, or unidentified remittance;
2 (iii) stock or other evidence of ownership of an interest in a business association or financial
3 organization;
4 (iv) bond, debenture, note, or other evidence of indebtedness;
5 (v) money deposited to redeem stocks, bonds, coupons, or other securities or to make
6 distributions, except for a worthless security or a security that is subject to a lien, legal hold, or restriction
7 evidenced on the records of the holder or imposed by operation of law, if the lien, legal hold, or restriction
8 restricts the holder's or owner's ability to receive, transfer, sell, or otherwise negotiate the security;
9 (vi) an amount due and payable under the terms of an annuity or insurance policy, including
10 policies providing life insurance, property and casualty insurance, workers' compensation insurance, or health
11 and disability insurance; and
12 (vii) an amount distributable from a trust or custodial fund that is established under a plan to provide
13 health, welfare, pension, vacation, severance, retirement, death, stock purchase, profit sharing, employee
14 savings, supplemental unemployment insurance, or similar benefits.
15 (b) The term does not include:
16 (i) property that is held, issued, or owed by a local government entity, as defined in 2-7-501;
17 (ii) property held in a plan as described in section 529A of the Internal Revenue Code, 26 U.S.C.
18 529A, as amended;
19 (iii) game-related digital content;
20 (iv) a loyalty card; or
21 (v) an in-store credit for returned merchandise.
22 (15)(22) "Record" means information that is inscribed on a tangible medium or that is stored in an
23 electronic or other medium and that is retrievable in perceivable form.
24 (23) "Security" means:
25 (a) a security as defined in 30-8-112;
26 (b) a security entitlement as defined in 30-8-112, including a customer security account held by a
27 registered broker-dealer, to the extent the financial assets held in the security account are not:
28 (i) registered on the books of the issuer in the name of the person for which the broker-dealer
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1 holds the assets;
2 (ii) payable to the order of the person; or
3 (iii) specifically indorsed to the person; or
4 (c) an equity interest in a business association not included in subsection (23)(a) or (23)(b).
5 (24) "Sign" means, with present intent to authenticate or adopt a record:
6 (a) to execute or adopt a tangible symbol; or
7 (b) to attach to or logically associate with the record an electronic symbol, sound, or process.
8 (16)(25) "State" means a state of the United States, the District of Columbia, the Commonwealth of
9 Puerto Rico, or any territory or insular possession that is subject to the jurisdiction of the United States.
10 (17)(26) "Utility" means a person who owns or operates for public use any plant, equipment, real
11 property, franchise, or license for the transmission of communications or the production, storage, transmission,
12 sale, delivery, or furnishing of electricity, water, steam, or gas.
13 (27) (a) "Virtual currency" means a digital representation of value used as a medium of exchange,
14 unit of account, or store of value that does not have legal tender status recognized by the United States.
15 (b) The term does not include:
16 (i) the software or protocols governing the transfer of the digital representation of value;
17 (ii) game-related digital content; or
18 (iii) a loyalty card.
19 (28) "Worthless security" means a security whose cost of liquidation and delivery to the
20 administrator would exceed the value of the security on the date a report is due under this part."
21
22 Section 3. Section 70-9-803, MCA, is amended to read:
23 "70-9-803. Presumptions of abandonment. (1) Except as provided in subsection (6), property is
24 presumed abandoned if it is unclaimed by the apparent owner during the time set forth below for the particular
25 property:
26 (a) traveler's check, 15 years after issuance;
27 (b) money order, 7 years after issuance;
28 (c) stock or other equity interest in a business association or financial organization, including a
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1 security entitlement under Title 30, chapter 8, 5 years after the earlier of:
2 (i) the date of the most recent dividend, stock split, or other distribution that was unclaimed by the
3 apparent owner; or
4 (ii) the date of the second mailing of a statement of account or other notification or communication
5 that was returned as undeliverable or after the holder discontinued mailings, notifications, or communications to
6 the apparent owner;
7 (d) debt of a business association or financial organization, other than a bearer bond or an original
8 issue discount bond, 5 years after the date of the most recent interest payment that was unclaimed by the
9 apparent owner;
10 (e) demand, savings, or time deposit, including a deposit that is automatically renewable, 5 years
11 after the earlier of maturity or the date of the last indication by the owner of interest in the property; however, a
12 deposit that is automatically renewable is considered matured for purposes of this section upon its initial date of
13 maturity unless the owner has consented to a renewal at or about the time of the renewal and the consent is in
14 writing or is evidenced by a memorandum or other record on file with the holder;
15 (f) money or credits owed to a customer as a result of a retail business transaction, other than in-
16 store credit for returned merchandise, 3 years after the obligation accrued;
17 (g) gift certificate, 3 years after December 31 of the year in which the certificate was sold, but if
18 redeemable in merchandise only, the amount abandoned is considered to be 60% of the certificate's face value.
19 A gift certificate is not presumed abandoned if the gift certificate was sold by a person who in the past fiscal
20 year sold no more than $200,000 in gift certificates, which amount must be adjusted by November of each year
21 by the inflation factor. The amount considered abandoned for a person who sells more than the amount that
22 triggers presumption of abandonment is the value of gift certificates greater than that trigger. Ho