0001| HOUSE BILL 103
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| THOMAS P. FOY
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0005|
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0006|
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0007|
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0008| FOR THE COURTS, CORRECTIONS AND CRIMINAL JUSTICE COMMITTEE
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0009|
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0010| AN ACT
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0011| RELATING TO PROPERTY; ENACTING THE UNIFORM UNCLAIMED
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0012| PROPERTY ACT (1995); ESTABLISHING PROCEDURES FOR THE
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0013| DISPOSITION OF UNCLAIMED PROPERTY; PROVIDING PENALTIES;
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0014| AMENDING, REPEALING AND ENACTING SECTIONS OF THE NMSA
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0015| 1978.
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0016|
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0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW
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0018| MEXICO:
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0019| Section 1. [NEW MATERIAL] DEFINITIONS.--As used
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0020| in the Uniform Unclaimed Property Act (1995):
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0021| (1) "administrator" means the taxation and
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0022| revenue department, the secretary of taxation and revenue
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0023| or any employee of the department who exercises authority
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0024| lawfully delegated to him by the secretary;
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0025| (2) "apparent owner" means a person whose name
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0001| appears on the records of a holder as the person entitled
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0002| to property held, issued, or owing by the holder;
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0003| (3) "business association" means a corporation,
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0004| joint stock company, investment company, partnership,
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0005| unincorporated association, joint venture, limited
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0006| liability company, business trust, trust company, land
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0007| bank, safe deposit company, safekeeping depository,
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0008| financial organization, insurance company, mutual fund,
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0009| utility, or other business entity consisting of one or
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0010| more persons, whether or not for profit;
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0011| (4) "domicile" means the state of incorporation
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0012| of a corporation and the state of the principal place of
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0013| business of a holder other than a corporation;
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0014| (5) "financial organization" means a savings
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0015| and loan association, building and loan association,
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0016| savings bank, industrial bank, bank, banking organization
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0017| or credit union;
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0018| (6) "holder" means a person obligated to hold
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0019| for the account of, or deliver or pay to, the owner
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0020| property that is subject to the Uniform Unclaimed Property
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0021| Act (1995);
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0022| (7) "insurance company" means an association,
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0023| corporation, or fraternal or mutual benefit organization,
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0024| whether or not for profit, engaged in the business of
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0025| providing life endowments, annuities, or insurance,
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0001| including accident, burial, casualty, credit life,
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0002| contract performance, dental, disability, fidelity, fire,
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0003| health, hospitalization, illness, life, malpractice,
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0004| marine, mortgage, surety, wage protection, and workers'
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0005| compensation insurance;
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0006| (8) "mineral" means gas; oil; coal; other
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0007| gaseous, liquid, and solid hydrocarbons; oil shale; cement
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0008| material; sand and gravel; road material; building stone;
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0009| chemical raw material; gemstone; fissionable and
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0010| nonfissionable ores; colloidal and other clay; steam and
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0011| other geothermal resource; or any other substance defined
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0012| as a mineral by the law of New Mexico;
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0013| (9) "mineral proceeds" means amounts payable
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0014| for the extraction, production, or sale of minerals, or,
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0015| upon the abandonment of those payments, all payments that
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0016| become payable thereafter. The term includes amounts
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0017| payable:
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0018| (i) for the acquisition and retention of a
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0019| mineral lease, including bonuses, royalties, compensatory
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0020| royalties, shut-in royalties, minimum royalties and delay
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0021| rentals;
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0022| (ii) for the extraction, production or sale
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0023| of minerals, including net revenue interests, royalties,
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0024| overriding royalties, extraction payments and production
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0025| payments; and
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0001| (iii) under an agreement or option,
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0002| including a joint operating agreement, unit agreement,
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0003| pooling agreement and farm-out agreement;
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0004| (10) "money order" includes an express money
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0005| order and a personal money order, on which the remitter is
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0006| the purchaser. The term does not include a bank money
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0007| order or any other instrument sold by a financial
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0008| organization if the seller has obtained the name and
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0009| address of the payee;
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0010| (11) "owner" means a person who has a legal or
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0011| equitable interest in property subject to the Uniform
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0012| Unclaimed Property Act (1995) or the person's legal
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0013| representative.
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0014| The term includes a depositor in the case of a deposit, a
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0015| beneficiary in the case of a trust other than a deposit in
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0016| trust, and a creditor, claimant or payee in the case of
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0017| other property;
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0018| (12) "person" means an individual, business
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0019| association, financial organization, estate, trust,
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0020| government, governmental subdivision, agency, or
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0021| instrumentality, or any other legal or commercial entity;
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0022| (13) "property" means tangible property
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0023| described in Section 3 of the Uniform Unclaimed Property
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0024| Act (1995) or a fixed and certain interest in intangible
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0025| property that is held, issued, or owed in the course of a
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0001| holder's business, or by a government, governmental
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0002| subdivision, agency, or instrumentality, and all income or
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0003| increments therefrom. The term includes property that is
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0004| referred to as or evidenced by:
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0005| (i) money, a check, draft, deposit,
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0006| interest or dividend;
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0007| (ii) credit balance, customer's
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0008| overpayment, gift certificate, security deposit, refund,
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0009| credit memorandum, unpaid wage, unused ticket, mineral
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0010| proceeds or unidentified remittance;
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0011| (iii) stock or other evidence of ownership
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0012| of an interest in a business association or financial
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0013| organization;
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0014| (iv) a bond, debenture, note or other
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0015| evidence of indebtedness;
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0016| (v) money deposited to redeem stocks,
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0017| bonds, coupons, or other securities or to make
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0018| distributions;
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0019| (vi) an amount due and payable under the
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0020| terms of an annuity or insurance policy, including
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0021| policies providing life insurance, property and casualty
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0022| insurance, workers' compensation insurance, or health and
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0023| disability insurance; and
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0024| (vii) an amount distributable from a trust
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0025| or custodial fund established under a plan to provide
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0001| health, welfare, pension, vacation, severance, retirement,
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0002| death, stock purchase, profit sharing, employee savings,
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0003| supplemental unemployment insurance, or similar benefits;
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0004| (14) "record" means information that is
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0005| inscribed on a tangible medium or that is stored in an
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0006| electronic or other medium and is retrievable in
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0007| perceivable form;
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0008| (15) "state" means a state of the United
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0009| States, the District of Columbia, the commonwealth of
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0010| Puerto Rico or any territory or insular possession subject
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0011| to the jurisdiction of the United States; and
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0012| (16) "utility" means a person who owns or
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0013| operates for public use any plant, equipment, real
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0014| property, franchise, or license for the transmission of
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0015| communications or the production, storage, transmission,
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0016| sale, delivery, or furnishing of electricity, water,
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0017| steam, or gas.
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0018| Section 2. [NEW MATERIAL] PRESUMPTIONS OF
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0019| ABANDONMENT.--
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0020| (a) Property is presumed abandoned if it is
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0021| unclaimed by the apparent owner during the time set forth
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0022| below for the particular property:
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0023| (1) traveler's check, fifteen years after
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0024| issuance;
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0025| (2) money order, seven years after
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0001| issuance;
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0002| (3) stock or other equity interest in a
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0003| business association or financial organization, including
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0004| a security entitlement under Article 8 of the Uniform
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0005| Commercial Code, five years after the earlier of (i) the
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0006| date of the most recent dividend, stock split, or other
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0007| distribution unclaimed by the apparent owner, or (ii) the
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0008| date of the second mailing of a statement of account or
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0009| other notification or communication that was returned as
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0010| undeliverable or after the holder discontinued mailings,
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0011| notifications, or communications to the apparent owner;
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0012| (4) debt of a business association or
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0013| financial organization, other than a bearer bond or an
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0014| original issue discount bond, five years after the date of
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0015| the most recent interest payment unclaimed by the apparent
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0016| owner;
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0017| (5) a demand, savings, or time deposit,
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0018| including a deposit that is automatically renewable, five
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0019| years after the earlier of maturity or the date of the
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0020| last indication by the owner of interest in the property;
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0021| but a deposit that is automatically renewable is deemed
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0022| matured for purposes of this section upon its initial date
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0023| of maturity, unless the owner has consented to a renewal
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0024| at or about the time of the renewal and the consent is in
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0025| writing or is evidenced by a memorandum or other record on
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0001| file with the holder;
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0002| (6) money or credits owed to a customer as
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0003| a result of a retail business transaction, three years
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0004| after the obligation accrued;
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0005| (7) gift certificate, three years after
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0006| December 31 of the year in which the certificate was sold,
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0007| but if redeemable in merchandise only, the amount
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0008| abandoned is deemed to be sixty percent of the
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0009| certificate's face value;
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0010| (8) amount owed by an insurer on a life or
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0011| endowment insurance policy or an annuity that has matured
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0012| or terminated, three years after the obligation to pay
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0013| arose or, in the case of a policy or annuity payable upon
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0014| proof of death, three years after the insured has
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0015| attained, or would have attained if living, the limiting
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0016| age under the mortality table on which the reserve is
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0017| based;
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0018| (9) property distributable by a business
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0019| association or financial organization in a course of
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0020| dissolution, one year after the property becomes
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0021| distributable;
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0022| (10) property received by a court as
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0023| proceeds of a class action, and not distributed pursuant
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0024| to the judgment, one year after the distribution date;
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0025| (11) property held by a court, government,
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0001| governmental subdivision, agency, or instrumentality, one
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0002| year after the property becomes distributable;
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0003| (12) wages or other compensation for
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0004| personal services, one year after the compensation becomes
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0005| payable;
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0006| (13) deposit or refund owed to a subscriber
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0007| by a utility, one year after the deposit or refund becomes
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0008| payable;
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0009| (14) property in an individual retirement
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0010| account, defined benefit plan, or other account or plan
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0011| that is qualified for tax deferral under the income tax
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0012| laws of the United States, three years after the earliest
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0013| of the date of the distribution or attempted distribution
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0014| of the property, the date of the required distribution as
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0015| stated in the plan or trust agreement governing the plan,
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0016| or the date, if determinable by the holder, specified in
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0017| the income tax laws of the United States by which
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0018| distribution of the property must begin in order to avoid
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0019| a tax penalty; and
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0020| (15) all other property, five years after
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0021| the owner's right to demand the property or after the
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0022| obligation to pay or distribute the property arises,
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0023| whichever first occurs.
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0024| (b) At the time that an interest is presumed
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0025| abandoned under Subsection (a) of this section, any other
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0001| property right accrued or accruing to the owner as a
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0002| result of the interest, and not previously presumed
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0003| abandoned, is also presumed abandoned.
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0004| (c) Property is unclaimed if, for the
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0005| applicable period set forth in Subsection (a), the
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0006| apparent owner has not communicated in writing or by other
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0007| means reflected in a contemporaneous record prepared by or
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0008| on behalf of the holder, with the holder concerning the
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0009| property or the account in which the property is held, and
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0010| has not otherwise indicated an interest in the property.
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0011| A communication with an owner by a person other than the
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0012| holder or its representative who has not in writing
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0013| identified the property to the owner is not an indication
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0014| of interest in the property by the owner.
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0015| (d) An indication of an owner's interest in
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0016| property includes:
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0017| (i) the presentment of a check or other
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0018| instrument of payment of a dividend or other distribution
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0019| made with respect to an account or underlying stock or
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0020| other interest in a business association or financial
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0021| organization or, in the case of a distribution made by
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0022| electronic or similar means, evidence that the
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0023| distribution has been received;
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0024| (ii) owner-directed activity in the account
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0025| in which the property is held, including a direction by
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0001| the owner to increase, decrease, or change the amount or
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0002| type of property held in the account;
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0003| (iii) the making of a deposit to or
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0004| withdrawal from a bank account; and
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0005| (iv) the payment of a premium with respect
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0006| to a property interest in an insurance policy; but the
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0007| application of an automatic premium loan provision or
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0008| other nonforfeiture provision contained in an insurance
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0009| policy does not prevent a policy from maturing or
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0010| terminating if the insured has died or the insured or the
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0011| beneficiary of the policy has otherwise become entitled to
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0012| the proceeds before the depletion of the cash surrender
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0013| value of a policy by the application of those provisions.
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0014| (e) Property is payable or distributable for
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0015| purposes of the Uniform Unclaimed Property Act (1995)
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0016| notwithstanding the owner's failure to make demand or
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0017| present an instrument or document otherwise required to
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0018| obtain payment.
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0019| Section 3. [NEW MATERIAL] CONTENTS OF SAFE
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0020| DEPOSIT BOX OR OTHER SAFEKEEPING DEPOSITORY.--Tangible
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0021| property held in a safe deposit box or other safekeeping
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0022| depository in this state in the ordinary course of the
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0023| holder's business and proceeds resulting from the sale of
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0024| the property permitted by other law, are presumed
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0025| abandoned if the property remains unclaimed by the owner
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0001| for more than five years after expiration of the lease or
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0002| rental period on the box or other depository.
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0003| Section 4. [NEW MATERIAL] RULES FOR TAKING
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0004| CUSTODY.--Except as otherwise provided in the Uniform
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0005| Unclaimed Property Act (1995) or by other statute of this
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0006| state, property that is presumed abandoned, whether
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0007| located in this or another state, is subject to the
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0008| custody of this state if:
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0009| (1) the last known address of the apparent
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0010| owner, as shown on the records of the holder, is in this
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0011| state;
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0012| (2) the records of the holder do not reflect the
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0013| identity of the person entitled to the property and it is
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0014| established that the last known address of the person
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0015| entitled to the property is in this state;
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0016| (3) the records of the holder do not reflect the
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0017| last known address of the apparent owner and it is
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0018| established that:
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0019| (i) the last known address of the person
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0020| entitled to the property is in this state; or
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0021| (ii) the holder is domiciled in this state
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0022| or is a government or governmental subdivision, agency, or
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0023| instrumentality of this state and has not previously paid
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0024| or delivered the property to the state of the last known
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0025| address of the apparent owner or other person entitled to
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0001| the property;
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0002| (4) the last known address of the apparent
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0003| owner, as shown on the records of the holder, is in a
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0004| state that does not provide for the escheat or custodial
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0005| taking of the property and the holder is domiciled in this
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0006| state or is a government or governmental subdivision,
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0007| agency, or instrumentality of this state;
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0008| (5) the last known address of the apparent
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0009| owner, as shown on the records of the holder, is in a
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0010| foreign country and the holder is domiciled in this state
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0011| or is a government or governmental subdivision, agency, or
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0012| instrumentality of this state;
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0013| (6) the transaction out of which the property
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0014| arose occurred in this state, the holder is domiciled in a
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0015| state that does not provide for the escheat or custodial
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0016| taking of the property, and the last known address of the
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0017| apparent owner or other person entitled to the property is
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0018| unknown or is in a state that does not provide for the
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0019| escheat or custodial taking of the property; or
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0020| (7) the property is a traveler's check or money
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0021| order purchased in this state, or the issuer of the
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0022| traveler's check or money order has its principal place of
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0023| business in this state and the issuer's records show that
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0024| the instrument was purchased in a state that does not
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0025| provide for the escheat or custodial taking of the
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0001| property, or does not show the state in which the
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0002| instrument was purchased.
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0003| Section 5. [NEW MATERIAL] DORMANCY CHARGE.--A
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0004| holder may deduct from property presumed abandoned a
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0005| charge imposed by reason of the owner's failure to claim
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0006| the property within a specified time only if there is a
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0007| valid and enforceable written contract between the holder
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0008| and the owner under which the holder may impose the charge
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0009| and the holder regularly imposes the charge, which is not
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0010| regularly reversed or otherwise canceled. The amount of
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0011| the deduction is limited to an amount that is not
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0012| unconscionable.
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0013| Section 6. [NEW MATERIAL] BURDEN OF PROOF AS TO
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0014| PROPERTY EVIDENCED BY RECORD OF CHECK OR DRAFT.--A record
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0015| of the issuance of a check, draft or similar instrument is
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0016| prima facie evidence of an obligation. In claiming
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0017| property from a holder who is also the issuer, the
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0018| administrator's burden of proof as to the existence and
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0019| amount of the property and its abandonment is satisfied by
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0020| showing issuance of the instrument and passage of the
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0021| requisite period of abandonment. Defenses of payment,
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0022| satisfaction, discharge and want of consideration are
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0023| affirmative defenses that must be established by the
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0024| holder.
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0025| Section 7. [NEW MATERIAL] REPORT OF ABANDONED
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0001| PROPERTY.--
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0002| (a) A holder of property presumed abandoned
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0003| shall make a report to the administrator concerning the
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0004| property.
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0005| (b) The report must be verified and must
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0006| contain:
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0007| (1) a description of the property;
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0008| (2) except with respect to a traveler's
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0009| check or money order, the name, if known, and last known
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0010| address, if any, and the social security number or
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0011| taxpayer identification number, if readily ascertainable,
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0012| of the apparent owner of property of the value of fifty
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0013| dollars ($50.00) or more;
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0014| (3) an aggregated amount of items valued
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0015| under fifty dollars ($50.00) each;
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0016| (4) in the case of an amount of fifty
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0017| dollars ($50.00) or more held or owing under an annuity or
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0018| a life or endowment insurance policy, the full name and
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0019| last known address of the annuitant or insured and of the
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0020| beneficiary;
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0021| (5) in the case of property held in a safe
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0022| deposit box or other safekeeping depository, an indication
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0023| of the place where it is held and where it may be
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0024| inspected by the administrator, and any amounts owing to
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0025| the holder;
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0001| (6) the date, if any, on which the property
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0002| became payable, demandable, or returnable, and the date of
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0003| the last transaction with the apparent owner with respect
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0004| to the property; and
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0005| (7) other information that the
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0006| administrator by rule prescribes as necessary for the
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0007| administration of the Uniform Unclaimed Property Act
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0008| (1995).
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0009| (c) If a holder of property presumed abandoned
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0010| is a successor to another person who previously held the
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0011| property for the apparent owner or the holder has changed
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0012| its name while holding the property, the holder shall file
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0013| with the report its former names, if any, and the known
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0014| names and addresses of all previous holders of the
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0015| property.
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0016| (d) The report must be filed before November 1
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0017| of each year and cover the twelve months next preceding
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0018| July 1 of that year, but a report with respect to a life
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0019| insurance company must be filed before May 1 of each year
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0020| for the calendar year next preceding.
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0021| (e) The holder of property presumed abandoned
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0022| shall send written notice to the apparent owner, not more
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0023| than one hundred twenty days or less than sixty days
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0024| before filing the report, stating that the holder is in
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0025| possession of property subject to the Uniform Unclaimed
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0001| Property Act (1995), if:
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0002| (1) the holder has in its records an
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0003| address for the apparent owner which the holder's records
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0004| do not disclose to be inaccurate;
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0005| (2) the claim of the apparent owner is not
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0006| barred by a statute of limitations; and
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0007| (3) the value of the property is fifty
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0008| dollars ($50.00) or more.
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0009| (f) Before the date for filing the report, the
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0010| holder of property presumed abandoned may request the
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0011| administrator to extend the time for filing the report.
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0012| The administrator may grant the extension for good cause.
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0013| The holder, upon receipt of the extension, may make an
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0014| interim payment on the amount the holder estimates will
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0015| ultimately be due, which terminates the accrual of
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0016| additional interest on the amount paid.
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0017| (g) The holder of property presumed abandoned
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0018| shall file with the report an affidavit stating that the
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0019| holder has complied with Subsection (e) of this section.
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0020| SECTION 8. [NEW MATERIAL] PAYMENT OR DELIVERY OF
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0021| ABANDONED PROPERTY.--
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0022| (a) Except for property held in a safe deposit
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0023| box or other safekeeping depository, upon filing the
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0024| report required by Section 7 of the Uniform Unclaimed
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0025| Property Act (1995), the holder of property presumed
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0001| abandoned shall pay, deliver, or cause to be paid or
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0002| delivered to the administrator the property described in
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0003| the report as unclaimed, but if the property is an
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0004| automatically renewable deposit, and a penalty or
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0005| forfeiture in the payment of interest would result, the
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0006| time for compliance is extended until a penalty or
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0007| forfeiture would no longer result. Tangible property held
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0008| in a safe deposit box or other safekeeping depository may
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0009| not be delivered to the administrator until one hundred
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0010| twenty days after filing the report required by Section 7
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0011| of the Uniform Unclaimed Property Act (1995).
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0012| (b) If the property reported to the
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0013| administrator is a security or security entitlement under
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0014| Article 8 of the Uniform Commercial Code, the
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0015| administrator is an appropriate person to make an
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0016| indorsement, instruction, or entitlement order on behalf
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0017| of the apparent owner to invoke the duty of the issuer or
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0018| its transfer agent or the securities intermediary to
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0019| transfer or dispose of the security or the security
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0020| entitlement in accordance with Article 8 of the Uniform
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0021| Commercial Code.
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0022| (c) If the holder of property reported to the
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0023| administrator is the issuer of a certificated security,
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0024| the administrator has the right to obtain a replacement
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0025| certificate pursuant to Section 55-8-405 NMSA 1978, but an
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0001| indemnity bond is not required.
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0002| (d) An issuer, the holder, and any transfer
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0003| agent or other person acting pursuant to the instructions
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0004| of and on behalf of the issuer or holder in accordance
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0005| with this section is not liable to the apparent owner and
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0006| must be indemnified against claims of any person in
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0007| accordance with Section 10 of the Uniform Unclaimed
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0008| Property Act (1995).
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0009| Section 9. [NEW MATERIAL] NOTICE AND PUBLICATION
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0010| OF LISTS OF ABANDONED PROPERTY.--
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0011| (a) The administrator shall publish a notice
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0012| not later than November 30 of the year next following the
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0013| year in which abandoned property has been paid or
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0014| delivered to the administrator. The notice must be
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0015| published in a newspaper of general circulation in the
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0016| county of this state in which is located the last known
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0017| address of any person named in the notice. If a holder
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0018| does not report an address for the apparent owner, or the
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0019| address is outside this state, the notice must be
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0020| published in the county in which the holder has its
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0021| principal place of business within this state or another
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0022| county that the administrator reasonably selects. The
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0023| advertisement must be in a form that, in the judgment of
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0024| the administrator, is likely to attract the attention of
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0025| the apparent owner of the unclaimed property. The form
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0001| must contain:
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0002| (1) the name of each person appearing to be
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0003| the owner of the property, as set forth in the report
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0004| filed by the holder;
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0005| (2) the last known address or location of
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0006| each person appearing to be the owner of the property, if
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0007| an address or location is set forth in the report filed by
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0008| the holder;
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0009| (3) a statement explaining that property of
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0010| the owner is presumed to be abandoned and has been taken
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0011| into the protective custody of the administrator; and
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0012| (4) a statement that information about the
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0013| property and its return to the owner is available to a
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0014| person having a legal or beneficial interest in the
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0015| property, upon request to the administrator.
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0016| (b) The administrator is not required to
|
0017| advertise the name and address or location of an owner of
|
0018| property having a total value less than fifty dollars
|
0019| ($50.00), or information concerning a traveler's check,
|
0020| money order or similar instrument.
|
0021| Section 10. [NEW MATERIAL] CUSTODY BY STATE--
|
0022| RECOVERY BY HOLDER--DEFENSE OF HOLDER.--
|
0023| (a) In this section, payment or delivery is
|
0024| made in "good faith" if:
|
0025| (1) payment or delivery was made in a
|
0001| reasonable attempt to comply with the Uniform Unclaimed
|
0002| Property Act (1995);
|
0003| (2) the holder was not then in breach of a
|
0004| fiduciary obligation with respect to the property and had
|
0005| a reasonable basis for believing, based on the facts then
|
0006| known, that the property was presumed abandoned; and
|
0007| (3) there is no showing that the records
|
0008| under which the payment or delivery was made did not meet
|
0009| reasonable commercial standards of practice.
|
0010| (b) Upon payment or delivery of property to the
|
0011| administrator, the state assumes custody and
|
0012| responsibility for the safekeeping of the property. A
|
0013| holder who pays or delivers property to the administrator
|
0014| in good faith is relieved of all liability arising
|
0015| thereafter with respect to the property.
|
0016| (c) A holder who has paid money to the
|
0017| administrator pursuant to the Uniform Unclaimed Property
|
0018| Act (1995) may subsequently make payment to a person
|
0019| reasonably appearing to the holder to be entitled to
|
0020| payment. Upon a filing by the holder of proof of payment
|
0021| and proof that the payee was entitled to the payment, the
|
0022| administrator shall promptly reimburse the holder for the
|
0023| payment without imposing a fee or other charge. If
|
0024| reimbursement is sought for a payment made on a negotiable
|
0025| instrument, including a traveler's check or money order,
|
0001| the holder must be reimbursed upon filing proof that the
|
0002| instrument was duly presented and that payment was made to
|
0003| a person who reasonably appeared to be entitled to
|
0004| payment. The holder must be reimbursed for payment made
|
0005| even if the payment was made to a person whose claim was
|
0006| barred under Section 19(a) of the Uniform Unclaimed
|
0007| Property Act (1995).
|
0008| (d) A holder who has delivered property other
|
0009| than money to the administrator pursuant to the Uniform
|
0010| Unclaimed Property Act (1995) may reclaim the property if
|
0011| it is still in the possession of the administrator,
|
0012| without paying any fee or other charge, upon filing proof
|
0013| that the apparent owner has claimed the property from the
|
0014| holder.
|
0015| (e) The administrator may accept a holder's
|
0016| affidavit as sufficient proof of the holder's right to
|
0017| recover money and property under this section.
|
0018| (f) If a holder pays or delivers property to
|
0019| the administrator in good faith and thereafter another
|
0020| person claims the property from the holder or another
|
0021| state claims the money or property under its laws relating
|
0022| to escheat or abandoned or unclaimed property, the
|
0023| administrator, upon written notice of the claim, shall
|
0024| defend the holder against the claim and indemnify the
|
0025| holder against any liability on the claim resulting from
|
0001| payment or delivery of the property to the administrator.
|
0002| (g) Property removed from a safe deposit box or
|
0003| other safekeeping depository is received by the
|
0004| administrator subject to the holder's right to be
|
0005| reimbursed for the cost of the opening and to any valid
|
0006| lien or contract providing for the holder to be reimbursed
|
0007| for unpaid rent or storage charges. The administrator
|
0008| shall reimburse the holder out of the proceeds remaining
|
0009| after deducting the expense incurred by the administrator
|
0010| in selling the property.
|
0011| Section 11. [NEW MATERIAL] CREDITING OF
|
0012| DIVIDENDS, INTEREST AND INCREMENTS TO OWNER'S ACCOUNT.--If
|
0013| property other than money is delivered to the
|
0014| administrator under the Uniform Unclaimed Property Act
|
0015| (1995), the owner is entitled to receive from the
|
0016| administrator any income or gain realized or accruing on
|
0017| the property at or before liquidation or conversion of the
|
0018| property into money. If the property was an interest-
|
0019| bearing demand, savings, or time deposit, including a
|
0020| deposit that is automatically renewable, the administrator
|
0021| shall pay interest at a rate of five percent a year or any
|
0022| lesser rate the property earned while in the possession of
|
0023| the holder. Interest begins to accrue when the property
|
0024| is delivered to the administrator and ceases on the
|
0025| earlier of the expiration of ten years after delivery or
|
0001| the date on which payment is made to the owner. Interest
|
0002| on interest-bearing property is not payable for any period
|
0003| before the effective date of the Uniform Unclaimed
|
0004| Property Act (1995), unless authorized by law superseded
|
0005| by that act.
|
0006| Section 12. [NEW MATERIAL] PUBLIC SALE OF
|
0007| ABANDONED PROPERTY.--
|
0008| (a) Except as otherwise provided in this
|
0009| section, the administrator, within three years after the
|
0010| receipt of abandoned property, shall sell it to the
|
0011| highest bidder at public sale at a location in the state
|
0012| which in the judgment of the administrator affords the
|
0013| most favorable market for the property. The administrator
|
0014| may decline the highest bid and re-offer the property for
|
0015| sale if the administrator considers the bid to be
|
0016| insufficient. The administrator need not offer the
|
0017| property for sale if the administrator considers that the
|
0018| probable cost of sale will exceed the proceeds of the
|
0019| sale. A sale held under this section must be preceded by
|
0020| a single publication of notice, at least three weeks
|
0021| before sale, in a newspaper of general circulation in the
|
0022| county in which the property is to be sold.
|
0023| (b) Securities listed on an established stock
|
0024| exchange must be sold at prices prevailing on the exchange
|
0025| at the time of sale. Other securities may be sold over
|
0001| the counter at prices prevailing at the time of sale or by
|
0002| any reasonable method selected by the administrator. If
|
0003| securities are sold by the administrator before the
|
0004| expiration of three years after their delivery to the
|
0005| administrator, a person making a claim under the Uniform
|
0006| Unclaimed Property Act (1995) before the end of the three-
|
0007| year period is entitled to the proceeds of the sale of the
|
0008| securities or the market value of the securities at the
|
0009| time the claim is made, whichever is greater, plus
|
0010| dividends, interest and other increments thereon up to the
|
0011| time the claim is made, less any deduction for expenses of
|
0012| sale. A person making a claim under the Uniform Unclaimed
|
0013| Property Act (1995) after the expiration of the three-year
|
0014| period is entitled to receive the securities delivered to
|
0015| the administrator by the holder, if they still remain in
|
0016| the custody of the administrator, or the net proceeds
|
0017| received from sale, and is not entitled to receive any
|
0018| appreciation in the value of the property occurring after
|
0019| delivery to the administrator, except in a case of
|
0020| intentional misconduct or malfeasance by the
|
0021| administrator.
|
0022| (c) A purchaser of property at a sale conducted
|
0023| by the administrator pursuant to the Uniform Unclaimed
|
0024| Property Act (1995) takes the property free of all claims
|
0025| of the owner or previous holder and of all persons
|
0001| claiming through or under them. The administrator shall
|
0002| execute all documents necessary to complete the transfer
|
0003| of ownership.
|
0004| Section 13. [NEW MATERIAL] DEPOSIT OF FUNDS.--
|
0005| (a) Except as otherwise provided by this
|
0006| section, the administrator shall promptly deposit in the
|
0007| general fund of this state all funds received under the
|
0008| Uniform Unclaimed Property Act (1995), including the
|
0009| proceeds from the sale of abandoned property under Section
|
0010| 12 of that act. The administrator shall retain in a
|
0011| separate trust fund at least
|
0012| one hundred thousand dollars ($100,000) from which the
|
0013| administrator shall pay claims duly allowed. The
|
0014| administrator shall record the name and last known address
|
0015| of each person appearing from the holders' reports to be
|
0016| entitled to the property and the name and last known
|
0017| address of each insured person or annuitant and
|
0018| beneficiary and with respect to each policy or annuity
|
0019| listed in the report of an insurance company, its number,
|
0020| the name of the company, and the amount due.
|
0021| (b) Before making a deposit to the credit of
|
0022| the general fund, the administrator may deduct:
|
0023| (1) expenses of sale of abandoned property;
|
0024| (2) costs of mailing and publication in
|
0025| connection with abandoned property;
|
0001| (3) reasonable service charges; and
|
0002| (4) expenses incurred in examining records
|
0003| of holders of property and in collecting the property from
|
0004| those holders.
|
0005| Section 14. [NEW MATERIAL] CLAIM OF ANOTHER STATE
|
0006| TO RECOVER PROPERTY.--
|
0007| (a) After property has been paid or delivered
|
0008| to the administrator under the Uniform Unclaimed Property
|
0009| Act (1995), another state may recover the property if:
|
0010| (1) the property was paid or delivered to
|
0011| the custody of this state because the records of the
|
0012| holder did not reflect a last known location of the
|
0013| apparent owner within the borders of the other state and
|
0014| the other state establishes that the apparent owner or
|
0015| other person entitled to the property was last known to be
|
0016| located within the borders of that state and under the
|
0017| laws of that state the property has escheated or become
|
0018| subject to a claim of abandonment by that state;
|
0019| (2) the property was paid or delivered to
|
0020| the custody of this state because the laws of the other
|
0021| state did not provide for the escheat or custodial taking
|
0022| of the property, and under the laws of that state
|
0023| subsequently enacted the property has escheated or become
|
0024| subject to a claim of abandonment by that state;
|
0025| (3) the records of the holder were
|
0001| erroneous in that they did not accurately identify the
|
0002| owner of the property and the last known location of the
|
0003| owner within the borders of another state and under the
|
0004| laws of that state the property has escheated or become
|
0005| subject to a claim of abandonment by that state;
|
0006| (4) the property was subjected to custody
|
0007| by this state under Section 4(6) of the Uniform Unclaimed
|
0008| Property Act (1995), and under the laws of the state of
|
0009| domicile of the holder the property has escheated or
|
0010| become subject to a claim of abandonment by that state; or
|
0011| (5) the property is a sum payable on a
|
0012| traveler's check, money order or similar instrument that
|
0013| was purchased in the other state and delivered into the
|
0014| custody of this state under Section 4(7) of the Uniform
|
0015| Unclaimed Property Act (1995), and under the laws of the
|
0016| other state the property has escheated or become subject
|
0017| to a claim of abandonment by that state.
|
0018| (b) A claim of another state to recover
|
0019| escheated or abandoned property must be presented in a
|
0020| form prescribed by the administrator, who shall decide the
|
0021| claim within ninety days after it is presented. The
|
0022| administrator shall allow the claim upon determining that
|
0023| the other state is entitled to the abandoned property
|
0024| under Subsection (a) of this section.
|
0025| (c) The administrator shall require another
|
0001| state, before recovering property under this section, to
|
0002| agree to indemnify this state and its officers and
|
0003| employees against any liability on a claim to the
|
0004| property.
|
0005| Section 15. [NEW MATERIAL] FILING CLAIM WITH
|
0006| ADMINISTRATOR--HANDLING OF CLAIMS BY ADMINISTRATOR.--
|
0007| (a) A person, excluding another state, claiming
|
0008| property paid or delivered to the administrator may file a
|
0009| claim on a form prescribed by the administrator and
|
0010| verified by the claimant.
|
0011| (b) Within ninety days after a claim is filed,
|
0012| the administrator shall allow or deny the claim and give
|
0013| written notice of the decision to the claimant. If the
|
0014| claim is denied, the administrator shall inform the
|
0015| claimant of the reasons for the denial and specify what
|
0016| additional evidence is required before the claim will be
|
0017| allowed. The claimant may then file a new claim with the
|
0018| administrator or maintain an action under Section 16 of
|
0019| the Uniform Unclaimed Property Act (1995).
|
0020| (c) Within thirty days after a claim is
|
0021| allowed, the property or the net proceeds of a sale of the
|
0022| property must be delivered or paid by the administrator to
|
0023| the claimant, together with any dividend, interest or
|
0024| other increment to which the claimant is entitled under
|
0025| Sections 11 and 12 of the Uniform Unclaimed Property Act
|
0001| (1995).
|
0002| (d) A holder who pays the owner for property
|
0003| that has been delivered to the state and which, if claimed
|
0004| from the administrator by the owner would be subject to an
|
0005| increment under Sections 11 and 12 of the Uniform
|
0006| Unclaimed Property Act (1995), may recover from the
|
0007| administrator the amount of the increment.
|
0008| Section 16. [NEW MATERIAL] ACTION TO ESTABLISH
|
0009| CLAIM.--A person aggrieved by a decision of the
|
0010| administrator or whose claim has not been acted upon
|
0011| within ninety days after its filing may maintain an
|
0012| original action to establish the claim in the district
|
0013| court for the first judicial district, naming the
|
0014| administrator as a defendant. If the aggrieved person
|
0015| establishes the claim in an action against the
|
0016| administrator, the court may award the claimant reasonable
|
0017| attorney's fees.
|
0018| Section 17. [NEW MATERIAL] ELECTION TO TAKE
|
0019| PAYMENT OR DELIVERY.--
|
0020| (a) The administrator may decline to receive
|
0021| property reported under the Uniform Unclaimed Property Act
|
0022| (1995) which the administrator considers to have a value
|
0023| less than the expenses of notice and sale.
|
0024| (b) A holder, with the written consent of the
|
0025| administrator and upon conditions and terms prescribed by
|
0001| the administrator, may report and deliver property before
|
0002| the property is presumed abandoned. Property so delivered
|
0003| must be held by the administrator and is not presumed
|
0004| abandoned until it otherwise would be presumed abandoned
|
0005| under the Uniform Unclaimed Property Act (1995).
|
0006| Section 18. [NEW MATERIAL] DESTRUCTION OR
|
0007| DISPOSITION OF PROPERTY HAVING NO SUBSTANTIAL COMMERCIAL
|
0008| VALUE--IMMUNITY FROM LIABILITY.--If the administrator
|
0009| determines after investigation that property delivered
|
0010| under the Uniform Unclaimed Property Act (1995) has no
|
0011| substantial commercial value, the administrator may
|
0012| destroy or otherwise dispose of the property at any time.
|
0013| An action or proceeding may not be maintained against the
|
0014| state or any officer or against the holder for or on
|
0015| account of an act of the administrator under this section,
|
0016| except for intentional misconduct or malfeasance.
|
0017| Section 19. [NEW MATERIAL] PERIODS OF
|
0018| LIMITATION.--
|
0019| (a) The expiration, before or after the
|
0020| effective date of the Uniform Unclaimed Property Act
|
0021| (1995), of a period of limitation on the owner's right to
|
0022| receive or recover property, whether specified by
|
0023| contract, statute or court order, does not preclude the
|
0024| property from being presumed abandoned or affect a duty to
|
0025| file a report or to pay or deliver or transfer property to
|
0001| the administrator as required by the Uniform Unclaimed
|
0002| Property Act (1995).
|
0003| (b) An action or proceeding may not be
|
0004| maintained by the administrator to enforce the Uniform
|
0005| Unclaimed Property Act (1995) in regard to the reporting,
|
0006| delivery, or payment of property more than ten years after
|
0007| the holder specifically identified the property in a
|
0008| report filed with the administrator or gave express notice
|
0009| to the administrator of a dispute regarding the property.
|
0010| In the absence of such a report or other express notice,
|
0011| the period of limitation is tolled. The period of
|
0012| limitation is also tolled by the filing of a report that
|
0013| is fraudulent.
|
0014| Section 20. [NEW MATERIAL] REQUESTS FOR REPORTS
|
0015| AND EXAMINATION OF RECORDS.--
|
0016| (a) The administrator may require a person who
|
0017| has not filed a report, or a person whom the administrator
|
0018| believes has filed an inaccurate, incomplete or false
|
0019| report, to file a verified report in a form specified by
|
0020| the administrator. The report must state whether the
|
0021| person is holding property reportable under the Uniform
|
0022| Unclaimed Property Act (1995), describe property not
|
0023| previously reported or as to which the administrator has
|
0024| made inquiry, and specifically identify and state the
|
0025| amounts of property that may be in issue.
|
0001| (b) The administrator, at reasonable times and
|
0002| upon reasonable notice, may examine the records of any
|
0003| person to determine whether the person has complied with
|
0004| the Uniform Unclaimed Property Act (1995). The
|
0005| administrator may conduct the examination even if the
|
0006| person believes it is not in possession of any property
|
0007| that must be reported, paid or delivered under the Uniform
|
0008| Unclaimed Property Act (1995). The administrator may
|
0009| contract with any other person to conduct the examination
|
0010| on behalf of the administrator.
|
0011| (c) The administrator at reasonable times may
|
0012| examine the records of an agent, including a dividend
|
0013| disbursing agent or transfer agent, of a business
|
0014| association or financial association that is the holder of
|
0015| property presumed abandoned if the administrator has given
|
0016| the notice required by Subsection (b) of this section to
|
0017| both the association or organization and the agent at
|
0018| least ninety days before the examination.
|
0019| (d) Documents and working papers obtained or
|
0020| compiled by the administrator, or the administrator's
|
0021| agents, employees or designated representatives, in the
|
0022| course of conducting an examination are confidential and
|
0023| are not public records, but the documents and papers may
|
0024| be:
|
0025| (1) used by the administrator in the course
|
0001| of an action to collect unclaimed property or otherwise
|
0002| enforce the Uniform Unclaimed Property Act (1995);
|
0003| (2) used in joint examinations conducted
|
0004| with or pursuant to an agreement with another state, the
|
0005| federal government, or any other governmental subdivision,
|
0006| agency or instrumentality;
|
0007| (3) produced pursuant to subpoena or court
|
0008| order; or
|
0009| (4) disclosed to the abandoned property
|
0010| office of another state for that state's use in
|
0011| circumstances equivalent to those described in this
|
0012| subsection, if the other state is bound to keep the
|
0013| documents and papers confidential.
|
0014| (e) If an examination of the records of a
|
0015| person results in the disclosure of property reportable
|
0016| under the Uniform Unclaimed Property Act (1995), the
|
0017| administrator may assess the cost of the examination
|
0018| against the holder at the rate of two hundred dollars
|
0019| ($200) a day for each examiner, or a greater amount that
|
0020| is reasonable and was incurred, but the assessment may not
|
0021| exceed the value of the property found to be reportable.
|
0022| The cost of an examination made pursuant to Subsection (c)
|
0023| of this section may be assessed only against the business
|
0024| association or financial organization.
|
0025| (f) If, after the effective date of the Uniform
|
0001| Unclaimed Property Act (1995), a holder does not maintain
|
0002| the records required by Section 21 of that act and the
|
0003| records of the holder available for the periods subject to
|
0004| that act are insufficient to permit the preparation of a
|
0005| report, the administrator may require the holder to report
|
0006| and pay to the administrator the amount the administrator
|
0007| reasonably estimates, on the basis of any available
|
0008| records of the holder or by any other reasonable method of
|
0009| estimation, should have been but was not reported.
|
0010| Section 21. [NEW MATERIAL] RETENTION OF RECORDS.-
|
0011| -
|
0012| (a) Except as otherwise provided in Subsection
|
0013| (b) of this section, a holder required to file a report
|
0014| under Section 7 of the Uniform Unclaimed Property Act
|
0015| (1995) shall maintain the records containing the
|
0016| information required to be included in the report for ten
|
0017| years after the holder files the report, unless a shorter
|
0018| period is provided by rule of the administrator.
|
0019| (b) A business association or financial
|
0020| organization that sells, issues, or provides to others for
|
0021| sale or issue in this state, traveler's checks, money
|
0022| orders, or similar instruments other than third-party bank
|
0023| checks, on which the business association or financial
|
0024| organization is directly liable, shall maintain a record
|
0025| of the instruments while they remain outstanding,
|
0001| indicating the state and date of issue, for three years
|
0002| after the holder files the report.
|
0003| Section 22. [NEW MATERIAL] ENFORCEMENT.--The
|
0004| administrator may maintain an action in this or another
|
0005| state to enforce the Uniform Unclaimed Property Act
|
0006| (1995). The court may award reasonable attorney's fees to
|
0007| the prevailing party.
|
0008| Section 23. [NEW MATERIAL] INTERSTATE AGREEMENTS
|
0009| AND COOPERATION--JOINT AND RECIPROCAL ACTIONS WITH OTHER
|
0010| STATES.--
|
0011| (a) The administrator may enter into an
|
0012| agreement with another state to exchange information
|
0013| relating to abandoned property or its possible existence.
|
0014| The agreement may permit the other state, or another
|
0015| person acting on behalf of a state, to examine records as
|
0016| authorized in Section 20 of the Uniform Unclaimed Property
|
0017| Act (1995). The administrator by rule may require the
|
0018| reporting of information needed to enable compliance with
|
0019| an agreement made under this section and prescribe the
|
0020| form.
|
0021| (b) The administrator may join with another
|
0022| state to seek enforcement of the Uniform Unclaimed
|
0023| Property Act (1995) against any person who is or may be
|
0024| holding property reportable under that act.
|
0025| (c) At the request of another state, the
|
0001| attorney general of this state may maintain an action on
|
0002| behalf of the other state to enforce, in this state, the
|
0003| unclaimed property laws of the other state against a
|
0004| holder of property subject to escheat or a claim of
|
0005| abandonment by the other state, if the other state has
|
0006| agreed to pay expenses incurred by the attorney general in
|
0007| maintaining the action.
|
0008| (d) The administrator may request that the
|
0009| attorney general of another state or another attorney
|
0010| commence an action in the other state on behalf of the
|
0011| administrator. With the approval of the attorney general
|
0012| of this state, the administrator may retain any other
|
0013| attorney to commence an action in this state on behalf of
|
0014| the administrator. This state shall pay all expenses,
|
0015| including attorney's fees, in maintaining an action under
|
0016| this subsection. With the administrator's approval, the
|
0017| expenses and attorney's fees may be paid from money
|
0018| received under the Uniform Unclaimed Property Act (1995).
|
0019| The administrator may agree to pay expenses and attorney's
|
0020| fees based in whole or in part on a percentage of the
|
0021| value of any property recovered in the action. Any
|
0022| expenses or attorney's fees paid under this subsection may
|
0023| not be deducted from the amount that is subject to the
|
0024| claim by the owner under the Uniform Unclaimed Property
|
0025| Act (1995).
|
0001| Section 24. [NEW MATERIAL] INTEREST AND
|
0002| PENALTIES.--
|
0003| (a) A holder who fails to report, pay or
|
0004| deliver property within the time prescribed by the Uniform
|
0005| Unclaimed Property Act (1995) shall pay to the
|
0006| administrator interest at the annual rate set forth in
|
0007| Section 7-1-67 NMSA 1978 on the property or value thereof
|
0008| from the date the property should have been reported, paid
|
0009| or delivered.
|
0010| (b) Except as otherwise provided in Subsection
|
0011| (c) of this section, a holder who fails to report, pay or
|
0012| deliver property within the time prescribed by the Uniform
|
0013| Unclaimed Property Act (1995), or fails to perform other
|
0014| duties imposed by that act, shall pay to the
|
0015| administrator, in addition to interest as provided in
|
0016| Subsection (a) of this section, a civil penalty of two
|
0017| hundred dollars ($200) for each day the report, payment or
|
0018| delivery is withheld, or the duty is not performed, up to
|
0019| a maximum of five thousand dollars ($5,000).
|
0020| (c) A holder who willfully fails to report, pay
|
0021| or deliver property within the time prescribed by the
|
0022| Uniform Unclaimed Property Act (1995), or willfully fails
|
0023| to perform other duties imposed by that act, shall pay to
|
0024| the administrator, in addition to interest as provided in
|
0025| Subsection (a) of this section, a civil penalty of one
|
0001| thousand dollars ($1,000) for each day the report, payment
|
0002| or delivery is withheld, or the duty is not performed, up
|
0003| to a maximum of twenty-five thousand dollars ($25,000),
|
0004| plus twenty-five percent of the value of any property that
|
0005| should have been but was not reported.
|
0006| (d) A holder who makes a fraudulent report
|
0007| shall pay to the administrator, in addition to interest as
|
0008| provided in Subsection (a) of this section, a civil
|
0009| penalty of one thousand dollars ($1,000) for each day from
|
0010| the date a report under the Uniform Unclaimed Property Act
|
0011| (1995) was due, up to a maximum of twenty-five thousand
|
0012| dollars ($25,000), plus twenty-five percent of the value
|
0013| of any property that should have been but was not
|
0014| reported.
|
0015| (e) The administrator for good cause may waive,
|
0016| in whole or in part, interest under Subsection (a) of this
|
0017| section and penalties under Subsections (b) and (c) of
|
0018| this section, and shall waive penalties if the holder
|
0019| acted in good faith and without negligence.
|
0020| Section 25. [NEW MATERIAL] AGREEMENT TO LOCATE
|
0021| PROPERTY.--
|
0022| (a) An agreement by an owner, the primary
|
0023| purpose of which is to locate, deliver, recover or assist
|
0024| in the recovery of property that is presumed abandoned is
|
0025| void and unenforceable if it was entered into during the
|
0001| period commencing on the date the property was presumed
|
0002| abandoned and extending to a time that is twenty-four
|
0003| months after the date the property is paid or delivered to
|
0004| the administrator. This subsection does not apply to an
|
0005| owner's agreement with an attorney to file a claim as to
|
0006| identified property or contest the administrator's denial
|
0007| of a claim.
|
0008| (b) An agreement by an owner, the primary
|
0009| purpose of which is to locate, deliver, recover or assist
|
0010| in the recovery of property is enforceable only if the
|
0011| agreement is in writing, clearly sets forth the nature of
|
0012| the property and the services to be rendered, is signed by
|
0013| the apparent owner, and states the value of the property
|
0014| before and after the fee or other compensation has been
|
0015| deducted.
|
0016| (c) If an agreement covered by this section
|
0017| applies to mineral proceeds and the agreement contains a
|
0018| provision to pay compensation that includes a portion of
|
0019| the underlying minerals or any mineral proceeds not then
|
0020| presumed abandoned, the provision is void and
|
0021| unenforceable.
|
0022| (d) An agreement covered by this section which
|
0023| provides for compensation that is unconscionable is
|
0024| unenforceable except by the owner. An owner who has
|
0025| agreed to pay compensation that is unconscionable, or the
|
0001| administrator on behalf of the owner, may maintain an
|
0002| action to reduce the compensation to a conscionable
|
0003| amount. The court may award reasonable attorney's fees to
|
0004| an owner who prevails in the action.
|
0005| (e) This section does not preclude an owner
|
0006| from asserting that an agreement covered by this section
|
0007| is invalid on grounds other than unconscionable
|
0008| compensation.
|
0009| Section 26. [NEW MATERIAL] FOREIGN
|
0010| TRANSACTIONS.--The Uniform Unclaimed Property Act (1995)
|
0011| does not apply to:
|
0012| (1) property held, due and owing in a
|
0013| foreign country and arising out of a foreign transaction;
|
0014| (2) funds in a member's share account in a
|
0015| credit union if the bylaws of the credit union provide for
|
0016| unclaimed funds to be used for educational or charitable
|
0017| uses; and
|
0018| (3) patronage capital or other tangible
|
0019| ownership interest in a rural electric cooperative, a
|
0020| telephone cooperative, a water cooperative or an
|
0021| agricultural cooperative, if the bylaws of the cooperative
|
0022| provide for unclaimed patronage capital to be used for
|
0023| educational scholarships or other charitable uses.
|
0024| Section 27. [NEW MATERIAL] TRANSITIONAL
|
0025| PROVISIONS.--
|
0001| (a) An initial report filed under the Uniform
|
0002| Unclaimed Property Act (1995) for property that was not
|
0003| required to be reported before the effective date of that
|
0004| act, but which is subject to that act, must include all
|
0005| items of property that would have been presumed abandoned
|
0006| during the ten-year period next preceding the effective
|
0007| date of the Uniform Unclaimed Property Act (1995) as if
|
0008| that act had been in effect during that period.
|
0009| (b) The Uniform Unclaimed Property Act (1995)
|
0010| does not relieve a holder of a duty that arose before the
|
0011| effective date of that act to report, pay or deliver
|
0012| property. Except as otherwise provided in Section 19(b)
|
0013| of the Uniform Unclaimed Property Act (1995), a holder who
|
0014| did not comply with the law in effect before the effective
|
0015| date of that act is subject to the applicable provisions
|
0016| for enforcement and penalties which then existed, which
|
0017| are continued in effect for the purpose of this section.
|
0018| Section 28. [NEW MATERIAL] RULES.--The
|
0019| administrator may adopt pursuant to the State Rules Act
|
0020| rules necessary to carry out the Uniform Unclaimed
|
0021| Property Act (1995).
|
0022| Section 29. [NEW MATERIAL] UNIFORMITY OF
|
0023| APPLICATION AND CONSTRUCTION.--
|
0024| The Uniform Unclaimed Property Act (1995) shall be applied
|
0025| and construed to effectuate its general purpose to make
|
0001| uniform the law with respect to the subject of that act
|
0002| among states enacting it.
|
0003| Section 30. [NEW MATERIAL] SHORT TITLE.--This act
|
0004| may be cited as the "Uniform Unclaimed Property Act
|
0005| (1995)".
|
0006| Section 31. SEVERABILITY CLAUSE.--If any provision
|
0007| of the Uniform Unclaimed Property Act (1995) or the
|
0008| application thereof to any person or circumstance is held
|
0009| invalid, the invalidity does not affect other provisions
|
0010| or applications of that act which can be given effect
|
0011| without the invalid provision or application, and to this
|
0012| end the provisions of the act are severable.
|
0013| Section 32. Section 7-8-20.1 NMSA 1978 (being Laws
|
0014| 1990, Chapter 98, Section 1) is amended to read:
|
0015| "7-8-20.1. EXERCISE OF DUE DILIGENCE--LIABILITY--
|
0016| NOTICE.--
|
0017| A. Notwithstanding any other provisions of the
|
0018| Uniform Unclaimed Property Act (1995), the holder of
|
0019| unclaimed intangible property in the form of checks in
|
0020| payment of royalty interests, working interests or other
|
0021| interests payable out of oil and gas production with a
|
0022| value of fifty dollars ($50.00) or more who fails to
|
0023| exercise due diligence in attempting to locate the
|
0024| apparent owner of such property during the running of the
|
0025| period specified under [Sections 7-8-3 and 7-8-6 through
|
7-8-16 NMSA 1978] Section 2 of the Uniform Unclaimed
|
0002| Property Act (1995) constituting a presumption of
|
0003| abandonment of such intangible property is subject to
|
0004| payment to the owner if such property is successfully
|
0005| claimed within the time specified by the Uniform Unclaimed
|
0006| Property Act (1995) or to the state of New Mexico upon
|
0007| payment or delivery of the property to the administrator,
|
0008| interest at the annual rate of interest computed as
|
0009| provided in Subsection B of Section 7-1-67 NMSA 1978 on
|
0010| the value of the intangible property, such interest run-
|
0011|
|
0012| ning from the date commencing after the first year in
|
0013| which the property remained unclaimed to the date of
|
0014| payment or delivery.
|
0015| B. Proof of the exercise of due diligence to
|
0016| locate the apparent owner shall be:
|
0017| (1) evidence of written notice mailed to
|
0018| the last known address of the apparent owner; and
|
0019| (2) proof of publication of notice to the
|
0020| apparent owner made between the end of the first year in
|
0021| which the property remained unclaimed and the end of the
|
0022| third year in which the property remained unclaimed. The
|
0023| publication of the notice required by this subsection for
|
0024| property presumed to be abandoned under the provisions of
|
0025| [Sections 7-8-8, 7-8-9, 7-8-11, 7-8-13 and 7-8-15 NMSA
|
1978] Section 7 of the Uniform Unclaimed Property Act
|
0002| (1995) shall be made at least thirty days, but not more
|
0003| than ninety days, prior to the due date on which the
|
0004| report pursuant to Section 7-8-17 NMSA 1978 is required to
|
0005| be filed.
|
0006| C. Publication as required in Subsection B of
|
0007| this section consists of publication in a newspaper of
|
0008| general circulation in the county of this state in which
|
0009| is located the last known address of the apparent owner,
|
0010| or if no address is listed or the address is outside the
|
0011| state, in a newspaper published in the county in which the
|
0012| holder of the property has his principal place of business
|
0013| within the state. The notice shall be published at least
|
0014| once a week for two consecutive weeks and shall be
|
0015| entitled:
|
0016| "NOTICE OF THE NAME OF A PERSON APPEARING
|
0017| TO BE
|
0018| THE OWNER OF ABANDONED PROPERTY".
|
0019| D. The published notice shall contain:
|
0020| (1) the name and last known address, if
|
0021| any, of the person entitled to notice as specified in this
|
0022| section;
|
0023| (2) a statement that information
|
0024| concerning the unclaimed property may be obtained from the
|
0025| holder of the property;
|
0001| (3) the name and address of the holder of
|
0002| the property; and
|
0003| (4) a statement that if proof of claim is
|
0004| not presented by the owner to the holder and the owner's
|
0005| right to receive the property is not established to the
|
0006| holder's satisfaction before the expiration of the period
|
0007| specified by the Uniform Unclaimed Property Act (1995)
|
0008| for the presumption of abandonment, the intangible
|
0009| property will be placed in the custody of the state of New
|
0010| Mexico and subject to escheat to the general fund of the
|
0011| state.
|
0012| E. The provisions of this section shall not
|
0013| apply to the United States or any agency or
|
0014| instrumentality of the United States or to the state of
|
0015| New Mexico or any agency or political subdivision of the
|
0016| state.
|
0017| F. Any holder of property that has been
|
0018| presumed to be abandoned for more than three years as of
|
0019| January 1, 1990 shall not be presumed to be negligent by
|
0020| the failure to publish a notice in a newspaper of general
|
0021| circulation as required by this section."
|
0022| Section 33. REPEAL.--Sections 7-8-1 through 7-8-20 and 7-8-21 through 7-8-
|
0023| 40 NMSA 1978 (being Laws 1959, Chapter 132, Section 1 and Laws 1989, Chapter
|
0024| 293, Sections 2 through 41, as amended) are repealed.
|
0025| Section 34. EFFECTIVE DATE.--The effective date of the provisions of this
|
0001| act is July 1, 1997.
|
0002| State of New Mexico
|
0003| House of Representatives
|
0004|
|
0005| FORTY-THIRD LEGISLATURE
|
0006| FIRST SESSION, 1997
|
0007|
|
0008|
|
0009| January 31, 1997
|
0010|
|
0011|
|
0012| Mr. Speaker:
|
0013|
|
0014| Your JUDICIARY COMMITTEE, to whom has been referred
|
0015|
|
0016| HOUSE BILL 103
|
0017|
|
0018| has had it under consideration and reports same with
|
0019| recommendation that it DO PASS.
|
0020|
|
0021| Respectfully submitted,
|
0022|
|
0023|
|
0024|
|
0025|
|
0001|
|
0002| Thomas P. Foy, Chairman
|
0003|
|
0004|
|
0005| Adopted Not Adopted
|
0006|
|
0007| (Chief Clerk) (Chief Clerk)
|
0008|
|
0009| Date
|
0010|
|
0011| The roll call vote was 11 For 0 Against
|
0012| Yes: 11
|
0013| Excused: King, Sanchez
|
0014| Absent: None
|
0015|
|
0016|
|
0017| G:\BILLTEXT\BILLW_97\H0103 FORTY-THIRD LEGISLATURE
|
0018| FIRST SESSION
|
0019|
|
0020|
|
0021| February 5, 1997
|
0022|
|
0023|
|
0024| HOUSE FLOOR AMENDMENT number ______ to HOUSE BILL 103
|
0025|
|
0001| Amendment sponsored by Representative Thomas P. Foy
|
0002|
|
0003|
|
0004| 1. On page 23, line 15, before "general" insert" tax administration suspense fund
|
0005| for distribution to the".
|
0006|
|
0007| 2. On page 23, line 19, strike "a separate trust" and insert in lieu thereof "the
|
0008| unclaimed property".
|
0009|
|
0010| 3. On page 24, lines 3 and 4, strike "credit of the general fund" and insert in lieu
|
0011| thereof "tax administration suspense fund".
|
0012|
|
0013| 4. On page 35, lines 19 and 20, strike "interest under Subsection (a) of this section
|
0014| and".
|
0015|
|
0016| 5. On page 40, line 18, strike "pursuant to Section 7-8-17 NMSA 1978" and insert
|
0017| in lieu thereof "of abandoned property".
|
0018|
|
0019|
|
0020|
|
0021|
|
0022| _________________________
|
0023| Thomas P. Foy
|
0024|
|
0025|
|
0001|
|
0002| Adopted___________________ Not Adopted _________________________
|
0003| (Chief Clerk) (Chief Clerk)
|
0004|
|
0005|
|
0006| Date _________________ FORTY-THIRD LEGISLATURE
|
0007| FIRST SESSION
|
0008|
|
0009| March 13, 1997
|
0010|
|
0011|
|
0012| SENATE FLOOR AMENDMENT number _______ to HOUSE BILL 103, as amended
|
0013|
|
0014| Amendment sponsored by Senator Fernando R. Macias
|
0015|
|
0016| 1. On page 34, line 21, strike "two hundred dollars ($200)" and insert in lieu
|
0017| thereof "one hundred dollars ($100)".
|
0018|
|
0019| 2. On page 35, lines 4 and 5, strike "one thousand dollars ($1,000)" and insert in
|
0020| lieu thereof "two hundred fifty dollars ($250)".
|
0021|
|
0022| 3. On page 35, line 7, strike "twenty-five thousand dollars ($25,000)" and insert in
|
0023| lieu thereof "seven thousand five hundred dollars ($7,500)".
|
0024|
|
0025| 4. On page 35, lines 12 and 13, strike "one thousand dollars ($1,000)" and insert
|
0001| in lieu thereof "five hundred dollars ($500)".
|
0002|
|
0003| 5. On page 35, line 15, strike "twenty-five thousand dollars ($25,000)" and insert
|
0004| in lieu thereof "twelve thousand five hundred dollars ($12,500)".
|
0005|
|
0006|
|
0007|
|
0008|
|
0009|
|
0010| __________________________
|
0011| Fernando R. Macias
|
0012|
|
0013|
|
0014|
|
0015| Adopted ___________________ Not Adopted _______________________
|
0016| (Chief Clerk) (Chief Clerk)
|
0017|
|
0018|
|
0019| Date _________________
|