THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY DeLUCA, EACHUS, THOMAS, CLYMER, D. COSTA, DONATUCCI, FRANKEL, GEORGE, GERGELY, JOSEPHS, KULA, MILLARD, MUNDY, M. O'BRIEN, READSHAW, SIPTROTH, SOLOBAY, J. TAYLOR, WHITE, BARBIN, BISHOP, BOYLE, BROWN, BUXTON, CASORIO, COHEN, CONKLIN, P. COSTA, CURRY, DERMODY, FABRIZIO, FREEMAN, HARHAI, HARKINS, JOHNSON, W. KELLER, MANDERINO, MARKOSEK, MATZIE, McCALL, McILVAINE SMITH, MELIO, PARKER, SABATINA, SANTONI, SEIP, M. SMITH, R. TAYLOR, WALKO, WANSACZ, WATERS, WILLIAMS, YOUNGBLOOD, YUDICHAK, BRENNAN AND MILNE, MAY 4, 2009

REFERRED TO COMMITTEE ON FINANCE, MAY 4, 2009  

AN ACT

Amending the act of April 9, 1929 (P.L.343, No.176), entitled,

as amended, "An act relating to the finances of the State

government; providing for the settlement, assessment,

collection, and lien of taxes, bonus, and all other accounts

due the Commonwealth, the collection and recovery of fees and

other money or property due or belonging to the Commonwealth,

or any agency thereof, including escheated property and the

proceeds of its sale, the custody and disbursement or other

disposition of funds and securities belonging to or in the

possession of the Commonwealth, and the settlement of claims

against the Commonwealth, the resettlement of accounts and

appeals to the courts, refunds of moneys erroneously paid to

the Commonwealth, auditing the accounts of the Commonwealth

and all agencies thereof, of all public officers collecting

moneys payable to the Commonwealth, or any agency thereof,

and all receipts of appropriations from the Commonwealth,

authorizing the Commonwealth to issue tax anticipation notes

to defray current expenses, implementing the provisions of

section 7(a) of Article VIII of the Constitution of

Pennsylvania authorizing and restricting the incurring of

certain debt and imposing penalties; affecting every

department, board, commission, and officer of the State

government, every political subdivision of the State, and

certain officers of such subdivisions, every person,

association, and corporation required to pay, assess, or

collect taxes, or to make returns or reports under the laws

imposing taxes for State purposes, or to pay license fees or

other moneys to the Commonwealth, or any agency thereof,

every State depository and every debtor or creditor of the

Commonwealth," further providing for property held by

financial institutions, for property held by insurers, for

property held by utilities, for property held by business

associations, for property held by fiduciaries, for property

held by courts and public officers and agencies and for

miscellaneous property held for or owing to another.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 1301.3 of the act of April 9, 1929

(P.L.343, No.176), known as The Fiscal Code, amended June 29,

2002 (P.L.614, No.91) and December 23, 2003 (P.L.243, No.45), is

amended to read:

Section 1301.3.  Property Held by Financial Institutions.--

The following property held or owing by a financial institution

is presumed abandoned and unclaimed:

1.  Any demand, saving or matured time deposit in a financial

institution, or any funds paid toward the purchase of shares or

other interest in a savings association, savings and loan or

building and loan association, excluding any charges that may

lawfully be withheld, unless within the preceding [five (5)]

four (4) years the owner has:

(i)  Increased the amount of the deposit, shares or claim,

otherwise than by the crediting of accrued interest, or

decreased it, or presented to the holder evidence of the

deposit, shares or claim; or

(ii)  Corresponded in writing with the holder concerning the

deposit, shares or claim; or

(iii)  Otherwise indicated an interest in the deposit, shares

or claim as evidenced by a writing on file with the holder; or

(iv)  Received tax reports or regular statements of the

deposits, shares or claim by certified mail or other method of

communication that will provide the financial institution with a

record that such report or statement was transmitted and

received; or

(v)  Owned other property held by the financial institution

to which subclause (i), (ii), (iii) or (iv) applies.

2.  A deposit under clause 1 shall include any interest or

dividend which the financial institution would pay to the owner

upon claim therefor. The charges which may be excluded hereunder

shall not include any charge due to inactivity imposed, directly

or indirectly, after December 31, 1981 unless there is a valid

and enforceable written contract between the financial

institution and the owner of the deposit pursuant to which the

financial institution may impose said charge.

3.  Any sum payable on checks or on written instruments

including, but not limited to, drafts, money orders and

travelers checks, on which a financial institution is directly

liable, and (i) which have been outstanding for more than [five

(5)] four (4) years, or in the case of travelers checks,

[fifteen (15)] ten (10) years, [or in the case of money orders,

six (6) years in calendar year 2003 and seven (7) years in

calendar year 2004 and thereafter,] from the date payable or

from the date of issuance if payable on demand; and (ii) the

owner of which has not written to the financial institution

concerning it, nor otherwise indicated an interest as evidenced

by a writing on file with the financial institution. 

4.  Any funds or other personal property, tangible or

intangible, removed from a safe deposit box or any other

safekeeping repository in the Commonwealth on which the lease or

rental period has expired due to nonpayment of rental charges or

other reason, or any surplus amounts arising from the sale

thereof pursuant to law, if the same has not been claimed by the

owner for more than [five (5)] four (4) years from the date on

which the rental period expired.

5.  The following deposits described in clause 1 shall be

excluded from the presumption of being abandoned and unclaimed

only while the conditions described below are in effect:

(i)  Deposits during any period when withdrawals may be made

only upon an order of a court of competent jurisdiction.

(ii)  Deposits established under 20 Pa.C.S. Ch. 53 (relating

to Pennsylvania Uniform Transfers to Minors Act) or similar law

concerning transfers to minors while the custodianship has not

been terminated.

(iii)  Burial reserve accounts and similar deposits

established under written agreements to provide for the funeral

and/or burial expenses of a person while the person is still

alive.

Section 2.  Section 1301.4 of the act, amended December 23,

2003 (P.L.243, No.45), is amended to read:

Section 1301.4.  Property Held by Insurers.--(a)  In the case

of life insurance, the following property held or owing by an

insurer is presumed abandoned and unclaimed:

1.  Any moneys held or owing by an insurer as established by

its records under any contract of annuity or policy of life

insurance including premiums returnable or dividends payable,

unclaimed and unpaid for more than [five (5)] four (4) years

after the moneys have or shall become due and payable under the

provisions of such contract of annuity or policy of insurance. A

life insurance policy not matured by actual proof of the death

of the insured is deemed to be matured and the proceeds thereof

are deemed to be due and payable if such policy was in force

when the insured attained the limiting age under the mortality

table on which the reserve is based, unless the person appearing

entitled thereto has within the preceding [five (5)] four (4) 

years, (i) assigned, readjusted or paid premiums on the policy,

or subjected the policy to loan, or (ii) corresponded in writing

with the insurer concerning the policy.

2.  If a person other than the insured or annuitant is

entitled to the funds and no address of such person is known to

the insurer or if it is not definite and certain from the

records of the insurer what person is entitled to the funds, it

is presumed that the last known address of the person entitled

to the funds is the same as the last known address of the

insured or annuitant according to the records of the insurer.

3.  Moneys otherwise payable according to the records of the

insurer are deemed due and payable although the policy or

contract has not been surrendered as required.

4.  Property distributable in the course of a demutualization

or related reorganization of an insurance company is deemed

abandoned two (2) years after the date of the demutualization or

reorganization if instruments or statements reflecting the

distribution are either mailed to the owner and returned by the

post office as undeliverable or not mailed to the owner because

of a known bad address on the books and records of the holder.

(b)  In the case of insurance other than life insurance, the

following property held or owing by an insurer is presumed

abandoned and unclaimed:

1.  Any moneys held or owing by an insurer as established by

its records under any contract of insurance other than annuity

or life insurance, including premiums or deposits returnable or

dividends payable to policy or contract holders or other persons

entitled thereto, unclaimed and unpaid for more than [five (5)]

four (4) years after the moneys have or shall become due and

payable under the provisions of such contracts of insurance.

2.  If a person other than the insured, the principal or the

claimant is entitled to the funds and no address of such person

is known to the insurer or if it is not definite and certain

from the records of the insurer what person is entitled to the

funds, it is presumed that the last known address of the person

entitled to the funds is the same as the last known address of

the insured, the principal or the claimant according to the

records of the insurer.

Section 3.  Section 1301.5 of the act, amended June 29, 2002

(P.L.614, No.91), is amended to read:

Section 1301.5.  Property Held by Utilities.--The following

funds held or owing by any utility are presumed abandoned and

unclaimed:

1.  Any customer advance, toll, deposit or collateral

security or any other property held by any utility if under the

terms of an agreement the advance, toll, deposit, collateral

security or other property is due to or demandable by the owner

and has remained unclaimed for [five (5)] four (4) years or more

from the date when it first became due to or demandable by the

owner under the agreement.

2.  Any sum which a utility has been ordered to refund, less

any lawful deductions, and which has remained unclaimed by the

person appearing on the records of the utility entitled thereto

for two (2) years or more after the date it became payable in

accordance with the final order providing for the refund.

Section 4.  Section 1301.6 of the act, amended June 29, 2002

(P.L.614, No.91) and November 9, 2006 (P.L.1335, No.138), is

amended to read:

Section 1301.6.  Property Held by Business Associations.--The

following property held or owing by a business association is

presumed abandoned and unclaimed:

1.  The consideration paid for a gift certificate or gift

card which has remained unredeemed for two (2) years or more

after its redemption period has expired or for [five (5)] four

(4) years or more from the date of issuance if no redemption

period is specified. The provisions of this clause shall not

apply to a qualified gift certificate. 

2.  Any certificate of stock or participating right in a

business association, for which a certificate has been issued or

is issuable but has not been delivered, whenever the owner

thereof has not claimed such property, or corresponded in

writing with the business association concerning it, within

[five (5)] four (4) years after the date prescribed for delivery

of the property to the owner.

3.  Any sum due as a dividend, profit, distribution, payment

or distributive share of principal held or owing by a business

association, whenever the owner has not claimed such sum or

corresponded in writing with the business association concerning

it within [five (5)] four (4) years after the date prescribed

for payment or delivery.

4.  Any sum due as principal or interest on the business

association's bonds or debentures, or coupons attached thereto,

whenever the owner has not claimed such sum or corresponded in

writing with the business association concerning it within [five

(5)] four (4) years after the date prescribed for payment.

5.  Any sum or certificate or participating right due by a

cooperative to a participating patron, whenever the owner has

not claimed such property, or corresponded with the cooperative

concerning the same within [five (5)] four (4) years after the

date prescribed for payment or delivery.

Section 5.  Section 1301.8 of the act, amended June 29, 2002

(P.L.614, No.91), is amended to read:

Section 1301.8.  Property Held by Fiduciaries.--The following

property held by fiduciaries is presumed abandoned and

unclaimed:

All property held in a fiduciary capacity for the benefit of

another person, unless the owner within [five (5)] four (4) 

years after it has or shall become payable or distributable has

increased or decreased the principal, accepted payment of

principal or income, corresponded in writing concerning the

property or otherwise indicated an interest therein as evidenced

by a writing on file with the fiduciary.

Section 6.  Clause 1 of section 1301.9 of the act, amended

November 9, 2006 (P.L.1335, No.138), is amended to read:

Section 1301.9.  Property Held by Courts and Public Officers

and Agencies.--The following property is presumed abandoned and

unclaimed:

1.  Except as provided in clauses 2 and 2.1 or clause 6, all

property held for the owner by any court, public corporation,

public authority or instrumentality of the United States, the

Commonwealth, or any other state, or by a public officer or

political subdivision thereof, unclaimed by the owner for more

than [five (5)] four (4) years from the date it first became

demandable or distributable.

* * *

Section 7.  Section 1301.10 of the act, amended December 23,

2003 (P.L.243, No.45), is amended to read: 

Section 1301.10.  Miscellaneous Property Held for or Owing to

Another.--The following property, held or owing to any owner, is

presumed abandoned and unclaimed:

1.  All property, not otherwise covered by this article, that

is admitted in writing by the holder and adjudicated to be due,

that is held or owing in the ordinary course of the holder's

business, and that has remained unclaimed by the owner for more

than [five (5)] four (4) years after it became payable or

distributable is presumed abandoned and unclaimed except for

clause 2.

2.  Wages or other compensation for personal services that

have remained unclaimed by the owner for more than three (3)

years after the wages or other compensation for personal

services become payable or are distributed are presumed

abandoned and unclaimed.

Section 8.  All additional funds received under Article

XIII.1, including the proceeds from the sale of property under

section 1301.17 of the act, from July 1, 2009, to June 30, 2010,

as a result of the amendment of sections 1301.3, 1301.4, 1301.5,

1301.6, 1301.8, 1301.9 and 1301.10 of the act shall be deposited

into the Tobacco Settlement Fund established under the act of

June 26, 2001 (P.L.755, No.77), known as the Tobacco Settlement

Act, and shall be used only for the purposes set forth under

Chapter 13 of the Tobacco Settlement Act.

Section 9.  This act shall take effect immediately.