Bill Summary – FastDemocracy

LEGISLATIVE SERVICES AGENCY
                OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
                                     200 W. Washington St., Suite 301
                                          Indianapolis, IN 46204
                                              (317) 233-0696
                                                 iga.in.gov
                                 FISCAL IMPACT STATEMENT
LS 6494                                                             NOTE PREPARED: Apr 22, 2021
BILL NUMBER: SB 188                                                 BILL AMENDED: Apr 21, 2021
SUBJECT: Revised Uniform Unclaimed Property Act.
FIRST AUTHOR: Sen. Koch                                             BILL STATUS: Enrolled
FIRST SPONSOR: Rep. Young J
FUNDS AFFECTED: X GENERAL                                           IMPACT: State & Local
                X DEDICATED
                  FEDERAL
Summary of Legislation: This bill repeals the Unclaimed Property Act and replaces it with the Revised
Unclaimed Property Act. It also makes conforming amendments.
Effective Date: July 1, 2021.
Explanation of State Expenditures: This bill makes changes to the treatment of unclaimed and abandoned
property in Indiana. Provisions of this bill will affect any state agency that is in possession of unclaimed
property, but the most significant changes primarily affect the Office of the Attorney General. The Attorney
General will need to amend policies and procedures regarding all aspects of its responsibilities regarding the
disposition of unclaimed property. These changes will include changes to notification procedures, record
keeping, security of personally identifiable information, and the ultimate return or sale of property. It also
requires that, on request, the Attorney General will deliver a report to the Treasurer of State detailing the
disposition of and proceeds from the sale of unclaimed property. In addition, the bill requires the Attorney
General to adopt rules regarding virtual currency and digital assets.
These changes do not significantly expand the responsibilities of the Office of the Attorney General because
the Attorney General is responsible for the majority of these matters under current law. This bill will create
a short-term workload increase for all affected state agencies and may require additional resources to
implement initially. Impact on the long-term workload of the Attorney General will be minor.
Explanation of State Revenues: This bill allows the Attorney General to impose interest fees and civil
penalties on a putative holder that fails to report, pay or deliver property to the Attorney General in the time
prescribed by the bill. Penalties are assessed daily with cumulative maximums of up to $25,000 in addition
to an amount equal to 25% of the value of the property in question. These fees and penalties could
SB 188                                                 1
significantly increase the amount of revenue received from the sale of unclaimed property. Actual revenue
effects of these provisions will depend on actions by the Attorney General.
The bill repeals the Class B misdemeanor for willfully refusing to pay or deliver property to the Attorney
General, which could result in a minor reduction in revenue to the Common School Fund (from fines) and
the state General Fund (from court fees). The maximum fine for a Class B misdemeanor is $1,000. However,
any decrease in revenue due to this provision would likely be small.
As under current law, this bill provides that proceeds from the sale of unclaimed property, minus certain
allowable expenses, are deposited with the Treasurer of State into the Abandoned Property Fund, and at least
once per year the balance in excess of $500,000 is transferred to the General Fund. Transfers from the
Abandoned Property Fund to the General Fund were $36.5 M in FY 2018, $25 M in FY 2019, and $50 M
in FY 2020.
Explanation of Local Expenditures: There could be a minor savings in local expenditures due to the repeal
of a Class B misdemeanor. A Class B misdemeanor is punishable by up to 180 days in jail.
Explanation of Local Revenues: There could be a minor decrease in revenue from court fees for local
government due to the repeal of a Class B misdemeanor.
State Agencies Affected: Office of the Attorney General; all state agencies that are in possession of
unclaimed property.
Local Agencies Affected: Trial courts, local law enforcement agencies.
Information Sources: https://www.indianaunclaimed.gov/, State Budget Agency Auditor’s Database.
Fiscal Analyst: Alexander Raggio, 317-234-9485.
SB 188                                               2
Statutes affected: 
1. Introduced Senate Bill (S): 4-6-3-3, 4-12-16-3, 5-14-3-4, 5-22-21-1, 6-8.1-8-15, 24-13-4-2, 25-30-1-5, 26-3-8-15, 32-34-1.5, 32-34-1.5-55, 32-33-10.5-8, 34-30-2-139, 36-9-23-28
2. Senate Bill (S): 4-6-3-3, 4-12-16-3, 5-14-3-4, 5-22-21-1, 6-8.1-8-15, 24-13-4-2, 25-30-1-5, 26-3-8-15, 32-34-1.5, 32-34-1.5-55, 32-33-10.5-8, 34-30-2-139, 36-9-23-28
3. Engrossed Senate Bill (S): 4-6-3-3, 4-12-16-3, 5-14-3-4, 5-22-21-1, 6-8.1-8-15, 24-13-4-2, 25-30-1-5, 26-3-8-15, 32-34-1.5, 32-34-1.5-55, 32-33-10.5-8, 34-30-2-139, 36-9-23-28
4. Senate Bill (H): 4-6-3-3, 4-12-16-3, 5-14-3-4, 5-22-21-1, 6-8.1-8-15, 24-13-4-2, 25-30-1-5, 26-3-8-15, 32-34-1.5, 32-34-1.5-55, 32-33-10.5-8, 34-30-2-139, 36-9-23-28
5. Engrossed Senate Bill (H): 4-6-3-3, 4-12-16-3, 5-14-3-4, 5-22-21-1, 6-8.1-8-15, 24-13-4-2, 25-30-1-5, 26-3-8-15, 32-34-1.5, 32-34-1.5-53, 32-33-10.5-8, 34-30-2-139, 36-9-23-28, 27-2-23-21, 30-2-16-7
6. Enrolled Senate Bill (S): 4-6-3-3, 4-12-16-3, 5-14-3-4, 5-22-21-1, 6-8.1-8-15, 24-13-4-2, 25-30-1-5, 26-3-8-15, 27-2-23-16, 32-34-1.5, 32-34-1.5-53, 32-33-10.5-8, 34-30-2-139, 36-9-23-28