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Senate Engrossed House Bill
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State of Arizona
House of Representatives
Forty-fourth Legislature
Second Regular Session
2000
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CHAPTER 184
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HOUSE BILL 2037
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AN ACT AMENDING SECTIONS 5-111, 5-113, 6-395.10, 35-187, 41-1092.02, 41-1512 AND 41-2021, ARIZONA REVISED STATUTES; AMENDING SECTION 42-2003, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 1998, CHAPTER 107, SECTION 1 AND CHAPTER 261, SECTION 6; REPEALING SECTION 42-2003, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 1999, CHAPTER 183, SECTION 7 AND CHAPTER 290, SECTION 5; REPEALING TITLE 44, CHAPTER 3, ARIZONA REVISED STATUTES; AMENDING TITLE 44, ARIZONA REVISED STATUTES, BY ADDING A NEW CHAPTER 3; AMENDING SECTION 46-731, ARIZONA REVISED STATUTES; BLENDING MULTIPLE ENACTMENTS; RELATING TO UNCLAIMED PROPERTY. (TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona: Section 1. Section 5-111, Arizona Revised Statutes, is amended to read: 5-111. Wagering percentage to permittee and state; exemptions A. The commission shall prescribe rules governing wagering on races under the system known as pari-mutuel wagering. Wagering shall be conducted by a permittee only by pari-mutuel wagering and only on the dates for which racing or dark day simulcasting has been authorized by the commission. Wagering for a licensed racing meeting shall be conducted by a permittee only within an enclosure in which authorized racing takes place and, in counties having a population of less than five hundred thousand persons or at least one million five hundred thousand persons, as shown by the most recent United States decennial census, at those additional facilities which are owned or leased by a permittee and which are used by a permittee for handling wagering as part of the pari- mutuel system and pool of the permittee at the enclosure where the authorized racing is conducted. In all other counties, wagering may also be conducted at additional facilities which are owned or leased by a permittee who is licensed to conduct live racing in those counties or who has the consent of all commercial permittees currently licensed to conduct live racing in those counties and which are used by a permittee for handling wagering and as part of the pari-mutuel system and pool of the permittee at the enclosure where the authorized racing is conducted. If the additional facilities have not been used for authorized racing before their use for handling wagering, a permittee shall not use the facilities for handling wagering before receiving approval for such use by the governing body of the city or town, if located within the corporate limits, or by the board of supervisors, if located in an unincorporated area of the county. A permittee may televise the races to the additional facilities at the times the races are conducted. For the purpose of section 5-110, subsection C only, a race upon which wagering is permitted under this subsection shall be deemed to also occur at the additional facility in the county in which the additional facility is located, and as such shall be limited in the same manner as actual live racing in such county. For the purpose of subsections B and C of this section, the wagering at the additional facility shall be deemed to occur in the county in which the additional facility is located. B. During the period of any permit for dog racing in any county, the state shall receive five and one-half per cent of all monies handled in the pari-mutuel pool operated by the permittee, to be paid daily during the racing meeting. In all counties having a population of one million five hundred thousand persons or more, according to the most recent United States decennial census, four and three-quarters per cent of the gross amount of monies handled in a pari-mutuel pool shall be deducted from the pari-mutuel pool and shall be deposited daily into a trust account for the payment of purse amounts. In counties having a population of less than one million five hundred thousand persons according to the most recent United States decennial census, four per cent of the gross amount of monies handled in a pari-mutuel pool shall be deducted from the pari- mutuel pool and shall be deposited daily in a trust account for the payment of purse amounts. In addition, twenty-five per cent of any reduction in pari-mutuel taxes each year resulting from the application of the hardship tax reduction credit determined pursuant to subsection I of this section shall be deposited in the trust account for supplementing purse amounts in an equitable manner over the racing meeting as determined by the commission. Notwithstanding any other provision of this subsection, the percentage paid by a permittee to the state does not apply to monies handled in a pari- mutuel pool for wagering on simulcasts of out-of-state races. During a week in which a permittee conducts live racing at the permittee's racetrack enclosure, the permittee shall deduct from monies handled in a pari-mutuel pool for wagering on simulcasts of out- of-state races and deposit daily in a trust account for the payment of purse amounts the same percentage of the pari-mutuel pool as is deducted for purses for live races unless otherwise agreed by written contract. Unless otherwise agreed by written contract, if the commission reasonably determines that live racing will not be conducted within one calendar year at a racetrack enclosure, the permittee shall deduct from monies handled in a pari-mutuel pool for wagering on simulcasts of out-of-state races and deposit daily in a trust account to supplement purses of any dog track where live racing is conducted within a one hundred mile radius. The supplementing provided by this subsection shall be in the most equitable manner possible as determined by the commission. The permittee shall allocate the funds in the trust account and pay purse amounts at least biweekly. The permittee may, at the permittee's discretion, pay additional amounts to augment purses from the amounts received by the permittee under this subsection. C. During the period of a permit for horse, harness or dog racing, the permittee which conducts such meeting may deduct up to and including twenty-five per cent of the total amount handled in the regular pari-mutuel pools and may, at the permittee's option, deduct up to and including thirty per cent of the total amount handled in the exacta, daily double, quinella and other wagering pools involving two horses or dogs, and up to and including thirty-five per cent of the total amount handled in the trifecta or other wagering pools involving more than two horses or dogs in one or more races. The amounts if deducted shall be distributed as prescribed in subsection D of this section and section 5-111.02 for horse or harness racing permittees. For dog racing permittees, unless otherwise agreed by written contract, the permittee shall allocate to purses from amounts wagered on live racing conducted in this state an amount equal to fifty per cent of any amounts that are deducted pursuant to this subsection in excess of twenty per cent of the total amount handled in the regular pari-mutuel pools, twenty-one per cent of the total amount handled in the exacta, daily double, quinella and other wagering pools involving two dogs or twenty-five per cent of the total amount handled in the trifecta or other wagering pools involving more than two dogs in one or more races. For dog racing permittees the percentages prescribed in subsection B of this section shall be distributed to the state and to the trust account for payment of purse amounts and the permittee shall receive the balance. If the dog racing permittee has made capital improvements, the distribution to the state shall be adjusted as provided in section 5- 111.03. Monies deposited in the trust account for payment of purses pursuant to this subsection shall be in addition to amounts deposited pursuant to subsection B of this section. D. During the period of a permit for horse or harness racing, the state shall receive two per cent of the gross amount of the first one million dollars of the daily pari-mutuel pools and five per cent of the gross amount exceeding one million dollars of the daily pari-mutuel pools. Notwithstanding any other provision of this subsection, the percentage paid by a permittee to the state does not apply to monies handled in a pari- mutuel pool for wagering on simulcasts of out-of-state races. The permittee shall retain the balance of the total amounts deducted pursuant to subsection C of this section. Of the amount retained by the permittee, less the amount payable to the permittee for capital improvements pursuant to section 5-111.02, breakage distributed to the permittee pursuant to section 5-111.01 and other applicable state, county and city transaction privilege or other taxes, unless otherwise agreed by written contract, fifty per cent shall be used for purses. Unless otherwise agreed by written contract, fifty per cent of the revenues received by the permittee from simulcasting races as provided in section 5- 112, net of costs of advertising, shall be utilized as a supplement to the general purse structure. All amounts which are deducted from the pari-mutuel pool for purses pursuant to this section and sections 5-111.01, 5-112 and 5-114 and revenues which are received from simulcasting and which are to be used as a supplement to the general purse structure pursuant to this subsection shall be deposited daily into a trust account for the payment of purse amounts. E. Any county fair racing association may apply to the commission for one racing meeting each year and the commission shall set the number of days and the dates of such meetings. A racing meeting conducted under this subsection shall be operated in such manner that all profits accrue to the county fair racing association, and the county fair racing association may deduct from the pari-mutuel pool the same amount as prescribed in subsection C of this section. All county fair racing meetings, whether conducted by county fair racing associations under the provisions of this subsection or by an individual, corporation or association other than a county fair racing association, are exempt from the payment to the state of the percentage of the pari-mutuel pool prescribed by subsection D of this section and are also exempt from the provisions of section 5- 111.01. F. Monies from charity racing days are exempt from the state percentage of the pari-mutuel pool prescribed in this section. G. Sums held by a permittee for payment of unclaimed pari-mutuel tickets are exempt
from the provisions of the H. All of the amounts received by a permittee from the gross amount of monies handled in a pari-mutuel pool and all amounts held by a permittee for payment of purses pursuant to this section and sections 5-111.01, 5-112 and 5-114 are exempt from the provisions of title 42, chapter 5. I. On August 1 of each year a permittee is eligible for a hardship tax credit pursuant to this subsection. For purposes of this subsection, "permittee" shall include any person who has succeeded to the interest of a permittee and who is authorized to conduct racing at the facility for which the permit was issued. The department shall determine the amount of any hardship tax credit as follows: 1. Determine the percentage decrease in pari-mutuel wagering by determining the percentage decrease in pari-mutuel wagering between the base period amount and the amount of pari-mutuel wagering in the previous fiscal year at the racetrack and the additional wagering facilities operated by the permittee. The base period amount is the highest total annual pari-mutuel wagering at the racetrack and all additional wagering facilities as reported to the department for fiscal year 1989-1990, 1990-1991, 1991-1992, 1992-1993 or 1993-1994. 2. Determine the permittee's hardship tax credit by multiplying the total pari- mutuel tax due as a result of wagering at the racetrack and all additional wagering facilities for the previous fiscal year before applying any hardship tax credit amount by the percentage decrease in pari-mutuel wagering determined pursuant to paragraph 1 of this subsection and multiplying the result by three. 3. The permittee's pari-mutuel tax due as otherwise determined under subsections B and D of this section shall be reduced for the current period and any future periods by an amount equal to the amount of the hardship tax credit determined pursuant to this subsection. The hardship tax credit is in addition to any other tax exemptions, rebates and credits. Sec. 2. Section 5-113, Arizona Revised Statutes, is amended to read: 5-113. Disposition of revenues and monies; funds; committee A. All revenues derived from permittees, permits and licenses, as provided by this
article, and all monies transferred pursuant to section 1. Eight hundred thousand dollars or twenty-two per cent, whichever is less, shall be credited to the Arizona county fairs racing betterment fund established by subsection B of this section. 2. One million two hundred thousand dollars or thirty-three per cent, whichever is less, shall be credited to the county fairs livestock and agriculture promotion fund established by subsection C of this section. 3. Eight hundred thousand dollars or twenty-two per cent, whichever is less, shall be credited to the Arizona breeders' award fund established by subsection F of this section. 4. Forty thousand dollars or one per cent, whichever is less, shall be credited to the Arizona stallion award fund established by subsection G of this section. 5. Three hundred thousand dollars or nine per cent, whichever is less, shall be credited to the county fair racing fund established by subsection I of this section. 6. One per cent of the revenues and monies shall be credited to the agricultural consulting and training fund established by subsection J of this section. 7. Forty-five thousand dollars or one per cent, whichever is less, shall be subject to legislative appropriation to the department for administration of the Arizona county fairs racing betterment fund, the Arizona breeders' award fund, the Arizona stallion award fund and the greyhound adoption fund. Monies that are distributed pursuant to this paragraph and that remain unspent at the end of a fiscal year do not revert to the state general fund. 8. Four hundred thousand dollars or eleven per cent, whichever is less, shall be credited for capital outlay to the Arizona exposition and state fair fund established by section 3-1005. 9. Any revenues and monies that are not distributed pursuant to paragraphs 1 through 8 of this subsection at the end of a fiscal year shall be deposited in the state general fund. B. The Arizona county fairs racing betterment fund is established under the jurisdiction of the department. The department shall distribute monies from the fund to the county fair association or county fair racing association of each county conducting a county fair racing meeting in such proportion as the department deems necessary for the promotion and betterment of county fair racing meetings. All expenditures from the fund shall be made upon claims approved by the department. In order to be eligible for distributions from the fund, a county fair association must provide the department with an annual certification in the form required by the department supporting expenditures made from the fund. Balances remaining in the fund at the end of a fiscal year do not revert to the state general fund. C. The county fairs livestock and agriculture promotion fund is established under the control of the governor and shall be used for the purpose of promoting the livestock and agricultural resources of the state and for the purpose of conducting an annual Arizona national livestock fair by the Arizona exposition and state fair board to further promote livestock resources. The direct expenses less receipts of the livestock fair shall be paid from this fund, but such payment shall not exceed thirty per cent of the receipts of the fund for the preceding fiscal year. Balances remaining in the fund at the end of a fiscal year do not revert to the state general fund. All expenditures from the fund shall be made upon claims approved by the governor, as recommended by the livestock and agriculture committee, for the promotion and betterment of the livestock and agricultural resources of this state. The livestock and agriculture committee is established and shall be composed of the following members, at least three of whom are from counties that have a population of less than five hundred thousand persons, appointed by the governor: 1. Three members representing county fairs. 2. One member representing Arizona livestock fairs. 3. One member representing the university of Arizona college of agriculture. 4. One member representing the livestock industry. 5. One member representing the farming industry. 6. One member representing the governor's office. 7. One member representing the Arizona state fair conducted by the Arizona exposition and state fair board. 8. One member representing the general public. D. The governor shall appoint a chairman from the members. Terms of members shall be four years. E. Members of the committee are not eligible to receive compensation but are eligible to receive reimbursement for expenses pursuant to title 38, chapter 4, article 2. F. The Arizona breeders' award fund is established under the jurisdiction of the department. The department shall distribute monies from the fund to the breeder, or the breeder's heirs, devisees or successors, of every winning horse or greyhound foaled or whelped in this state, as defined by section 5-114, in a manner and in an amount established by rules of the commission to protect the integrity of the racing industry and promote, improve and advance the quality of race horse and greyhound breeding within this state. The department may contract with a breeders' association to provide data, statistics and other information necessary to enable the department to carry out the purposes of this subsection. Persons who are not eligible to be licensed under section 5-107.01 or persons who have been refused licenses under section 5-108 are not eligible to participate in the Arizona greyhound breeders' award fund. Balances remaining in the fund at the end of a fiscal year do not revert to the state general fund. For the purposes of this subsection, "breeder" means the owner or lessee of the dam of the animal at the time the animal was foaled or whelped. G. The Arizona stallion award fund is established under the jurisdiction of the department to promote, improve and advance the quality of stallions in this state. The department shall distribute monies from the fund to the owner or lessee, or the owner's or lessee's heirs, devisees or successors, of every Arizona stallion whose certified Arizona bred offspring, as prescribed in section 5-114, finishes first, second or third in an eligible race in this state. The department may contract with a breeders' association to provide data, statistics and other information necessary to enable the department to carry out the purposes of this subsection. Balances remaining in the fund at the end of a fiscal year do not revert to the state general fund. The commission shall adopt rules pursuant to title 41, chapter 6 to carry out the purposes of this subsection. The rules shall prescribe at a minimum: 1. The manner and procedure for distribution from the fund, including eligibility requirements for owners and lessees. 2. Subject to availability of monies in the fund, the amount to be awarded. 3. The requirements for a stallion registered with the jockey club, Lexington, Kentucky or with the American quarter horse association, Amarillo, Texas to be certified as an Arizona stallion. 4. The types and requirements of races for which an award may be made. H. The greyhound adoption fund is established. The department shall administer the fund. The state treasurer shall credit to the fund all revenues derived from license fees collected from dog breeders, racing kennels and other operations pursuant to section 5-104, subsection F, paragraphs 7, 8 and 9. The department shall distribute monies from the fund to provide financial assistance to nonprofit enterprises approved by the commission to promote the adoption of former racing greyhounds as domestic pets pursuant to section 5-104, subsection G in a manner and in an amount established by rules of the commission. Balances remaining in the fund at the end of a fiscal year do not revert to the state general fund. I. The county fair racing fund is established. The department shall administer the fund. Subject to legislative appropriation, the department shall use fund monies for the administration of county fair racing. Any monies remaining unexpended in the fund at the end of the fiscal year in excess of seventy-five thousand dollars shall revert to the state general fund. J. The agricultural consulting and training fund is established. The Arizona department of agriculture shall administer the fund. Subject to legislative appropriation, the Arizona department of agriculture shall use monies in the fund for the agricultural consulting and training program established by section 3-109.01. Balances remaining in the fund at the end of a fiscal year do not revert to the state general fund. Sec. 3. Section 6-395.10, Arizona Revised Statutes, is amended to read: 6-395.10. Disposition of unclaimed property A. As soon after the commencement of liquidation as practicable the receiver shall cause notice to be given by mail to each person at the address shown on the records of the bank who appears from the records to be a bailor of property held by the bank or a lessee of a safety deposit repository. The notice shall demand that the property held by the bank as bailee or located in its safe deposit repositories be withdrawn by a date certain and, if appropriate, the notice shall designate the name of the bank that has assumed the obligations of the closed bank as bailee or repository lessor and the place where the repository or property will be located after a specified date. B. If the obligations of the closed bank as repository lessor have not been assumed
by another bank, the safety deposit repository, the contents of which have not been
removed before the date specified in the notice under subsection A of this section, shall
be opened by the receiver in the manner provided for repositories upon which the payment
of rental is in default. The unclaimed contents of the repositories together with all
unclaimed property held by the bank as bailee shall be delivered by the receiver to the
clerk of the court having jurisdiction of the receivership to be disposed of pursuant to
section Sec. 4. Section 35-187, Arizona Revised Statutes, is amended to read: 35-187. Warrants; limitation on payment Sec. 5. Section 41-1092.02, Arizona Revised Statutes, is amended to read: 41-1092.02. Appealable agency actions; application of procedural rules; exemption from article A. This article applies to all contested cases as defined in section 41-1001 and all appealable agency actions, except contested cases with or appealable agency actions of: 1. The state department of corrections. 2. The board of executive clemency. 3. The industrial commission of Arizona. 4. The Arizona corporation commission. 5. The Arizona board of regents and institutions under its jurisdiction. 6. The state personnel board. 7. The department of juvenile corrections. 8. The department of transportation. 9. The department of economic security except as provided in sections 8-506.01 and 8-811. 10. The department of revenue regarding income tax, withholding tax or estate tax or any tax issue related to information associated with the reporting of income tax, withholding tax or estate tax. 11. The board of tax appeals. 12. The state board of equalization. B. Unless waived by all parties, an administrative law judge shall conduct all hearings under this article, and the procedural rules set forth in this article and rules made by the director apply. C. Except as provided in subsection A of this section: 1. A contested case heard by the office of administrative hearings regarding taxes administered under title 42 shall be subject to the provisions under section 42-1251. 2. A final decision of the office of administrative hearings regarding taxes administered under title 42 may be appealed by either party to the director of the department of revenue, or a taxpayer may file and appeal directly to the board of tax appeals pursuant to section 42-1253. D. Except as provided in subsections A, B, E and F of this section and notwithstanding any other administrative proceeding or judicial review process established in statute or administrative rule, this article applies to all appealable agency actions and to all contested cases. E. EXCEPT FOR A CONTESTED CASE OR AN APPEALABLE AGENCY ACTION REGARDING UNCLAIMED PROPERTY, sections 41-1092.03, 41-1092.08 and 41-1092.09 do not apply to the department of revenue. F. The board of appeals established by section 37-213 is exempt from the time frames for hearings and decisions provided in section 41-1092.05, subsection A, section 41-1092.08 and section 41-1092.09. Sec. 6. Section 41-1512, Arizona Revised Statutes, is amended to read: 41-1512. Housing trust fund; purpose A. The housing trust fund is established and shall be administered by the
director. The fund consists of monies from unclaimed property deposited in the fund
pursuant to section B. The state treasurer may invest inactive deposits in the fund pursuant to section 35-313. The state treasurer shall credit all interest earned to the fund. C. Fund monies shall be spent on approval of the department of commerce for
developing projects and programs connected with providing housing opportunities for low
income households. Pursuant to section D. In approving the expenditure of monies, the director shall give priority to funding projects that provide for operating, constructing or renovating facilities for housing for low income families and that provide housing and shelter to families that have children. E. The director shall report annually to the legislature on the status of the housing trust fund. The report shall include a summary of facilities for which funding was provided during the preceding fiscal year, showing the cost of each facility and the number of individuals benefiting from the operation, construction or renovation of the facility. The report shall be submitted to the president of the senate and the speaker of the house of representatives no later than September 1 of each year. F. Monies in the housing trust fund are exempt from the provisions of section 35-
190 G. An amount not to exceed ten per cent of the housing trust monies may be appropriated annually by the legislature to the department for administrative costs in providing services relating to the housing trust fund. Sec. 7. Section 41-2021, Arizona Revised Statutes, is amended to read: 41-2021. Homeless trust fund; purpose A. The homeless trust fund is established B. Expenditures from the homeless trust fund for homeless shelter and supportive services are limited to not more than two hundred thousand dollars of the proceeds received during the first twelve months in which the fund is established. Expenditures for homeless shelter and supportive services in each year thereafter are limited to the interest earned in the fund. All expenditures made from interest earned on unclaimed property deposits and public donations in the fund shall be matched by the recipient of trust fund monies in an amount equal to at least twenty-five per cent of the total approved expenditure. C. Homeless trust fund monies shall be spent on approval of the department for homeless shelter and supportive services as provided by guidelines established pursuant to section 41-2022. D. In approving the expenditure of monies, the director shall give priority to projects which provide assistance to families that have children. E. The director shall report annually to the governor and the legislature on the status of the homeless trust fund. The report shall include a summary of the number of homeless assisted per county for which funding was provided during the previous fiscal year, showing the funding provided to each project. The report shall be submitted to the governor, the president of the senate and the speaker of the house of representatives no later than September 1 of each year. F. Monies in the homeless trust fund are exempt from the provisions of section 35-
190 Sec. 8. Section 42-2003, Arizona Revised Statutes, as amended by Laws 1998, chapter 107, section 1 and chapter 261, section 6, is amended to read: 42-2003. Authorized disclosure of confidential information A. Confidential information relating to: 1. A taxpayer may be disclosed to the taxpayer, its successor in interest or a designee of the taxpayer who is authorized in writing by the taxpayer. 2. A corporate taxpayer may be disclosed to any principal officer of the corporation. 3. A partnership may be disclosed to any partner of the partnership. This exception does not include disclosure of confidential information of a particular partner unless otherwise authorized. 4. An estate may be disclosed to the personal representative of the estate and to any heir, next of kin or beneficiary under the will of the decedent if the department finds that the heir, next of kin or beneficiary has a material interest which will be affected by the confidential information. 5. A trust may be disclosed to the trustee or trustees, jointly or separately, and to the grantor or any beneficiary of the trust if the department finds that the grantor or beneficiary has a material interest which will be affected by the confidential information. 6. Any taxpayer may be disclosed if the taxpayer has waived any rights to confidentiality either in writing or on the record in any administrative or judicial proceeding. 7. A claimant may be disclosed to the claimant, its successor in interest or a designee of the claimant pursuant to written authorization by the claimant. B. Confidential information may be disclosed to: 1. Any employee of the department whose official duties involve tax or unclaimed property administration. 2. The office of the attorney general solely for its use in preparation for, or in an investigation which may result in, any proceeding involving tax or unclaimed property administration before the department or any other agency or board of this state, or before any grand jury or any state or federal court. 3. The department of liquor licenses and control for its use in determining whether a spirituous liquor licensee has paid all transaction privilege taxes and affiliated excise taxes incurred as a result of the sale of spirituous liquor at the licensed establishment and imposed on the licensed establishments by this state and its political subdivisions. 4. Other state tax or unclaimed property officials of this state whose official duties require the disclosure for proper tax or unclaimed property administration purposes if the information is sought in connection with an investigation or any other proceeding conducted by the official. Any disclosure is limited to information of a taxpayer or claimant who is being investigated or who is a party to a proceeding conducted by the official. 5. The following agencies, officials and organizations, if they grant substantially similar privileges to the department for the type of information being sought, pursuant to statute and a written agreement between the department and the foreign country, agency, state, Indian tribe or organization: (a) The United States internal revenue service, United States bureau of alcohol, tobacco and firearms, United States drug enforcement agency and federal bureau of investigation. (b) A state tax or unclaimed property official of another state. (c) An organization of states that operates an information exchange for tax administration purposes. (d) An agency, official or organization of a foreign country with responsibilities that are comparable to those listed in subdivision (a), (b) or (c) of this paragraph. (e) An agency, official or organization of an Indian tribal government with responsibilities comparable to the responsibilities of the agencies, officials or organizations identified in subdivision (a), (b) or (c) of this paragraph. 6. The auditor general, in connection with any audit of the department subject to the restrictions in section 42-2002, subsection C. 7. Any person to the extent necessary for effective tax or unclaimed property administration in connection with: (a) The processing, storage, transmission and reproduction of the information. (b) The programming, maintenance, repair, testing and procurement of equipment for purposes of tax administration. 8. The office of administrative hearings relating to taxes administered by the department pursuant to section 42-1101, but the department shall not disclose any confidential information: (a) Regarding income tax, withholding tax or estate tax. (b) On any tax issue relating to information associated with the reporting of income tax, withholding tax or estate tax. C. Confidential information may be disclosed in any state or federal judicial or administrative proceeding pertaining to tax or unclaimed property administration if the taxpayer or claimant is a party to the proceeding. D. Identity information may be disclosed for purposes of notifying: 1. Persons entitled to tax refunds if the department is unable to locate the persons after reasonable effort. 2. Owners of unclaimed property pursuant to section E. The department, upon the request of any person, shall provide the names and addresses of bingo licensees as defined in section 5-401 or verify whether or not a person has a privilege license and number or withholding license and number. F. A department employee, in connection with the official duties relating to any audit, collection activity or civil or criminal investigation, may disclose return information to the extent that disclosure is necessary to obtain information which is not otherwise reasonably available. These official duties include the correct determination of and liability for tax, the amount to be collected or the enforcement of other state tax revenue laws. G. If an organization is exempt from this state's income tax as provided in section 43-1201 for any taxable year, the name and address of the organization and the application filed by the organization upon which the department made its determination for exemption together with any papers submitted in support of the application and any letter or document issued by the department concerning the application are open to public inspection. H. Confidential information relating to transaction privilege tax, use tax and rental occupancy tax may be disclosed to any county, city or town tax official if the information relates to a taxpayer who is or may be taxable by the county, city or town. Any taxpayer information released by the department to the county, city or town: 1. May only be used for internal purposes. 2. May not be disclosed to the public in any manner that does not comply with confidentiality standards established by the department. The county, city or town shall agree in writing with the department that any release of confidential information that violates the confidentiality standards adopted by the department will result in the immediate suspension of any rights of the county, city or town to receive taxpayer information under this subsection. I. The department may disclose statistical information gathered from confidential information if it does not disclose confidential information attributable to any one taxpayer or claimant of unclaimed property. TO COMPLY WITH THE REQUIREMENTS OF SECTION 42-5029, SUBSECTION A, PARAGRAPH 3, THE DEPARTMENT MAY DISCLOSE TO THE STATE TREASURER STATISTICAL INFORMATION GATHERED FROM CONFIDENTIAL INFORMATION, EVEN IF IT DISCLOSES CONFIDENTIAL INFORMATION ATTRIBUTABLE TO A TAXPAYER. J. Except as provided in section 42-2002, subsection B, confidential information, described in section 42-2001, paragraph 3, subdivision (a), item (iii), may be disclosed to law enforcement agencies for law enforcement purposes. K. The department may disclose and publish the names of corporations, the dividends of which qualify for the subtraction provided by section 43-1128. L. The department may provide transaction privilege tax license information to property tax officials in a county for the purpose of identification and verification of the tax status of commercial property. M. The department may provide transaction privilege tax, luxury tax, use tax, property tax and severance tax information to the ombudsman-citizens aide pursuant to title 41, chapter 8, article 5. N. Except as provided in section 42-2002, subsection C, a court may order the department to disclose confidential information pertaining to a party to an action. An order shall be made only upon a showing of good cause and that the party seeking the information has made demand upon the taxpayer or claimant for the information. O. This section does not prohibit the disclosure by the department of any information or documents submitted to the department by a bingo licensee. Before disclosing the information the department shall obtain the name and address of the person requesting the information. P. If the department is required or permitted to disclose confidential information, it may charge the person or agency requesting the information for the reasonable cost of its services. Q. Except as provided in section 42-2002, subsection C, the department of revenue shall release confidential information as requested by the department of economic security pursuant to section 42-1122 or 46-291. Information disclosed under this subsection is limited to the same type of information that the United States internal revenue service is authorized to disclose under section 6103(l)(6) of the internal revenue code. R. TO COMPLY WITH THE REQUIREMENTS OF SECTION 42-5031, THE DEPARTMENT MAY DISCLOSE TO THE STATE TREASURER, TO THE COUNTY STADIUM DISTRICT BOARD OF DIRECTORS AND TO ANY CITY OR TOWN TAX OFFICIAL THAT IS PART OF THE COUNTY STADIUM DISTRICT CONFIDENTIAL INFORMATION ATTRIBUTABLE TO A TAXPAYER'S BUSINESS ACTIVITY CONDUCTED IN THE COUNTY STADIUM DISTRICT. Sec. 9. Repeal Section 42-2003, Arizona Revised Statutes, as amended by Laws 1999, chapter 183, section 7 and chapter 290, section 5, is repealed. Sec. 10. Repeal Title 44, chapter 3, Arizona Revised Statutes, is repealed. Sec. 11. Title 44, Arizona Revised Statutes, is amended by adding a new chapter 3, to read: CHAPTER 3 REVISED ARIZONA UNCLAIMED PROPERTY ACT ARTICLE 1. GENERAL PROVISIONS 44-301. Definitions A. IN THIS CHAPTER, UNLESS THE CONTEXT OTHERWISE REQUIRES: 1. "APPARENT OWNER" MEANS A PERSON WHOSE NAME APPEARS ON THE RECORDS OF A HOLDER AS THE PERSON ENTITLED TO PROPERTY HELD, ISSUED OR OWING BY THE HOLDER. 2. "BUSINESS ASSOCIATION" MEANS ANY CORPORATION, JOINT STOCK COMPANY, INVESTMENT COMPANY, PARTNERSHIP, LIMITED PARTNERSHIP, REGISTERED LIMITED LIABILITY PARTNERSHIP, UNINCORPORATED ASSOCIATION, JOINT VENTURE, LIMITED LIABILITY COMPANY, BUSINESS TRUST, TRUST COMPANY, LAND BANK, SAFE DEPOSIT COMPANY, SAFEKEEPING DEPOSITORY, FINANCIAL ORGANIZATION, INSURANCE COMPANY, MUTUAL FUND, UTILITY OR OTHER BUSINESS ENTITY, WHETHER FOR PROFIT OR NOT FOR PROFIT, THAT CONSISTS OF ONE OR MORE PERSONS. 3. "DE MINIMUS PROPERTY" MEANS ANY ACCOUNT BALANCES OF BUSINESS ASSOCIATIONS OF FIFTY DOLLARS OR LESS PAYABLE TO ANOTHER BUSINESS ASSOCIATION. 4. "DEPARTMENT" MEANS THE DEPARTMENT OF REVENUE. 5. "DIRECTOR" MEANS THE DIRECTOR OF THE DEPARTMENT OF REVENUE. 6. "DOMICILE" MEANS THE STATE OF INCORPORATION OF A CORPORATION AND THE STATE OF THE PRINCIPAL PLACE OF BUSINESS OF A HOLDER OTHER THAN A CORPORATION. 7. "FINANCIAL ORGANIZATION" MEANS A SAVINGS AND LOAN ASSOCIATION, BUILDING AND LOAN ASSOCIATION, SAVINGS BANK, INDUSTRIAL BANK, BANK, BANKING ORGANIZATION OR CREDIT UNION. 8. "HOLDER" MEANS A PERSON WHO IS OBLIGATED TO HOLD FOR THE ACCOUNT OF OR DELIVER OR PAY TO THE OWNER PROPERTY THAT IS SUBJECT TO THIS CHAPTER. 9. "INSURANCE COMPANY" MEANS AN ASSOCIATION, CORPORATION OR FRATERNAL OR MUTUAL BENEFIT SOCIETY OR ORGANIZATION, WHETHER FOR PROFIT OR NOT FOR PROFIT, THAT IS ENGAGED IN THE BUSINESS OF PROVIDING LIFE ENDOWMENTS, ANNUITIES OR INSURANCE, INCLUDING ACCIDENT, BURIAL, CASUALTY, CREDIT LIFE, CONTRACT PERFORMANCE, DENTAL, DISABILITY, FIDELITY, FIRE, HEALTH, HOSPITALIZATION, ILLNESS, LIFE, MALPRACTICE, MARINE, MORTGAGE, SURETY, WAGE PROTECTION AND WORKERS' COMPENSATION INSURANCE. 10. "MINERAL" MEANS GAS, OIL, COAL, SAND, GRAVEL, ROAD MATERIAL, BUILDING STONE, CHEMICAL RAW MATERIAL, GEMSTONE, FISSIONABLE AND NONFISSIONABLE ORES, COLLOID AND OTHER CLAY, STEAM AND OTHER GEOTHERMAL RESOURCE OR ANY OTHER SUBSTANCE DEFINED AS A MINERAL IN SECTIONS 27-231 AND 27-901. 11. "MINERAL PROCEEDS" MEANS THE AMOUNTS PAYABLE FOR THE EXTRACTION, PRODUCTION OR SALE OF MINERALS OR, IF THOSE AMOUNTS ARE ABANDONED, ALL PAYMENTS THAT BECOME PAYABLE AFTER THE ABANDONMENT. MINERAL PROCEEDS INCLUDE AMOUNTS PAYABLE: (a) FOR THE ACQUISITIONS AND RETENTION OF A MINERAL LEASE, INCLUDING BONUSES, ROYALTIES, COMPENSATORY ROYALTIES, SHUT-IN ROYALTIES, MINIMUM ROYALTIES AND DELAY RENTALS. (b) FOR THE EXTRACTION, PRODUCTION OR SALE OF MINERALS, INCLUDING NET REVENUE INTEREST, ROYALTIES, OVERRIDING ROYALTIES, EXTRACTION PAYMENTS AND PRODUCTION PAYMENTS. (c) UNDER AN AGREEMENT OR OPTION, INCLUDING A JOINT OPERATING AGREEMENT, UNIT AGREEMENT, POOLING AGREEMENT AND FARM OUT AGREEMENT. 12. "MONEY ORDER" INCLUDES AN EXPRESS MONEY ORDER AND A PERSONAL MONEY ORDER ON WHICH THE REMITTER IS THE PURCHASER. MONEY ORDER DOES NOT INCLUDE A BANK MONEY ORDER OR ANY OTHER INSTRUMENT THAT IS SOLD BY A FINANCIAL ORGANIZATION IF THE SELLER HAS OBTAINED THE NAME AND ADDRESS OF THE PAYEE. 13. "OWNER" MEANS A PERSON WHO HAS A LEGAL OR EQUITABLE INTEREST IN PROPERTY THAT IS SUBJECT TO THIS CHAPTER OR THE PERSON'S LEGAL REPRESENTATIVE. OWNER INCLUDES A DEPOSITOR IN THE CASE OF A DEPOSIT, A BENEFICIARY IN THE CASE OF A TRUST OTHER THAN A DEPOSIT IN TRUST AND A CREDITOR, CLAIMANT OR PAYEE IN THE CASE OF OTHER PROPERTY. 14. "PERSON" MEANS AN INDIVIDUAL, BUSINESS ASSOCIATION, FINANCIAL ORGANIZATION, ESTATE, TRUST, GOVERNMENT, GOVERNMENTAL SUBDIVISION, AGENCY OR INSTRUMENTALITY OR ANY OTHER LEGAL OR COMMERCIAL ENTITY. 15. "PROPERTY" MEANS TANGIBLE PROPERTY PURSUANT TO SECTION 44-303 OR A FIXED AND CERTAIN INTEREST IN INTANGIBLE PROPERTY THAT IS HELD, ISSUED OR OWED IN THE COURSE OF A HOLDER'S BUSINESS OR BY A GOVERNMENT, GOVERNMENTAL SUBDIVISION, AGENCY OR INSTRUMENTALITY AND ALL INCOME OR INCREMENTS FROM THAT PROPERTY. PROPERTY DOES NOT INCLUDE DE MINIMUS PROPERTY AND PROPERTY THAT IS REFERRED TO OR EVIDENCED BY GIFT CERTIFICATES, ELECTRONIC GIFT CARDS, NONREFUNDABLE TICKETS, CERTIFICATES EVIDENCING PROPERTY DENOMINATED IN VALUE OTHER THAN A CURRENCY, INCLUDING PREPAID PHONE CARDS, FREQUENT FLYER MILES, STORED VALUE CARDS AND MERCHANDISE POINTS. PROPERTY INCLUDES PROPERTY THAT IS REFERRED TO AS OR EVIDENCED BY ANY OF THE FOLLOWING: (a) MONEY OR ANY CHECK, DRAFT, DEPOSIT, INTEREST OR DIVIDEND. (b) ANY CREDIT BALANCE, CUSTOMER'S OVERPAYMENT, SECURITY DEPOSIT, REFUND, CREDIT MEMORANDUM, UNPAID WAGE, UNUSED TICKET, MINERAL PROCEEDS OR UNIDENTIFIED REMITTANCE. (c) ANY STOCK OR OTHER EVIDENCE OF OWNERSHIP OF AN INTEREST IN A BUSINESS ASSOCIATION OR FINANCIAL ORGANIZATION. (d) ANY BOND, DEBENTURE, NOTE OR OTHER EVIDENCE OF INDEBTEDNESS. (e) MONEY DEPOSITED TO REDEEM STOCKS, BONDS, COUPONS OR OTHER SECURITIES OR TO MAKE DISTRIBUTIONS. (f) AN AMOUNT DUE AND PAYABLE UNDER THE TERMS OF AN ANNUITY OR INSURANCE POLICY, INCLUDING POLICIES THAT PROVIDE LIFE, PROPERTY, CASUALTY, WORKERS' COMPENSATION, HEALTH OR DISABILITY INSURANCE. (g) AN AMOUNT DISTRIBUTABLE FROM A TRUST OR CUSTODIAL FUND THAT IS ESTABLISHED UNDER A PLAN TO PROVIDE HEALTH, WELFARE, PENSION, VACATION, SEVERANCE, RETIREMENT, DEATH, STOCK PURCHASE, PROFIT SHARING, EMPLOYEE SAVINGS OR SUPPLEMENTAL UNEMPLOYMENT INSURANCE OR SIMILAR BENEFITS. 16. "RECORD" MEANS INFORMATION THAT IS INSCRIBED ON A TANGIBLE MEDIUM OR THAT IS STORED IN ANY ELECTRONIC OR OTHER MEDIUM AND THAT IS RETRIEVABLE IN A PERCEIVABLE FORM. 17. "STATE" MEANS A STATE OF THE UNITED STATES, THE DISTRICT OF COLUMBIA, THE COMMONWEALTH OF PUERTO RICO OR ANY TERRITORY OR INSULAR POSSESSION THAT IS SUBJECT TO THE JURISDICTION OF THE UNITED STATES. 18. "UTILITY" HAS THE SAME MEANING PRESCRIBED IN SECTION 40-491. 44-302. Presumptions of abandonment A. PROPERTY IS PRESUMED ABANDONED IF IT IS UNCLAIMED BY THE APPARENT OWNER ACCORDING TO THE FOLLOWING SCHEDULE: 1. A TRAVELER'S CHECK IS PRESUMED ABANDONED FIFTEEN YEARS AFTER ISSUANCE. 2. A MONEY ORDER OR SIMILAR WRITTEN INSTRUMENT, OTHER THAN A THIRD PARTY BANK CHECK, IS PRESUMED ABANDONED SEVEN YEARS AFTER ISSUANCE. 3. ANY STOCK OR OTHER EQUITY INTEREST IN A BUSINESS ASSOCIATION OR FINANCIAL ORGANIZATION, INCLUDING A SECURITY ENTITLEMENT UNDER TITLE 47, CHAPTER 8, IS PRESUMED ABANDONED THREE YEARS AFTER ANY OF THE FOLLOWING, WHICHEVER OCCURS FIRST: (a) THE DATE OF THE MOST RECENT DIVIDEND, STOCK SPLIT OR OTHER DISTRIBUTION THAT IS UNCLAIMED BY THE APPARENT OWNER. (b) THE DATE OF THE SECOND MAILING OF A STATEMENT OF ACCOUNT OR OTHER NOTIFICATION OR COMMUNICATION THAT WAS RETURNED AS UNDELIVERABLE. (c) THE DATE THE HOLDER DISCONTINUED MAILINGS, NOTIFICATIONS OR COMMUNICATIONS TO THE APPARENT OWNER. 4. THE PRINCIPAL ON DEBT, OTHER THAN A BEARER BOND OR AN ORIGINAL ISSUE DISCOUNT BOND, OF A BUSINESS ASSOCIATION OR FINANCIAL ORGANIZATION IS PRESUMED ABANDONED FIVE YEARS AFTER THE MATURITY DATE AND THE INTEREST ON THE DEBT IS PRESUMED ABANDONED FIVE YEARS AFTER THE PAYMENT DATE. 5. A DEMAND, SAVINGS OR TIME DEPOSIT, INCLUDING A DEPOSIT THAT IS AUTOMATICALLY RENEWABLE, AND ANY INTEREST OR DIVIDENDS ARE PRESUMED ABANDONED FIVE YEARS AFTER MATURITY OR THE DATE OF THE LAST INDICATION BY THE OWNER OF INTEREST IN THE PROPERTY, WHICHEVER OCCURS FIRST. FOR THE PURPOSES OF THIS PARAGRAPH, A DEPOSIT THAT IS AUTOMATICALLY RENEWABLE IS DEEMED MATURED ON ITS INITIAL DATE OF MATURITY, UNLESS THE OWNER HAS CONSENTED TO A RENEWAL AT OR ABOUT THE TIME OF THE RENEWAL AND THE CONSENT IS IN WRITING OR IS EVIDENCED BY ANY MEMORANDUM OR OTHER RECORD ON FILE WITH THE HOLDER. 6. CREDITS OWED TO A CUSTOMER AS A RESULT OF A RETAIL BUSINESS TRANSACTION ARE PRESUMED ABANDONED FIVE YEARS AFTER THE OBLIGATION ACCRUED. 7. AN AMOUNT OWED BY AN INSURER ON A LIFE OR ENDOWMENT INSURANCE POLICY OR AN ANNUITY THAT HAS MATURED OR TERMINATED IS PRESUMED ABANDONED FIVE YEARS AFTER THE OBLIGATION TO PAY AROSE OR, IN THE CASE OF A POLICY OR ANNUITY THAT IS PAYABLE ON PROOF OF DEATH, THE AMOUNT IS PRESUMED ABANDONED TWO YEARS AFTER THE INSURED HAS ATTAINED, OR WOULD HAVE ATTAINED IF THE INSURED WERE LIVING, THE LIMITING AGE UNDER THE MORTALITY TABLE ON WHICH THE RESERVE IS BASED. FOR THE PURPOSES OF THIS PARAGRAPH ALL OF THE FOLLOWING CONDITIONS APPLY: (a)¦¦IF A PERSON OTHER THAN THE INSURED OR ANNUITANT IS ENTITLED TO THE OWED AMOUNT AND THE PERSON'S ADDRESS IS NOT KNOWN TO THE COMPANY OR IT IS NOT DEFINITE AND CERTAIN FROM THE RECORDS OF THE COMPANY WHO IS ENTITLED TO THE AMOUNT, IT IS PRESUMED THAT THE LAST KNOWN ADDRESS OF THE PERSON WHO IS ENTITLED TO THE AMOUNT IS THE SAME AS THE LAST KNOWN ADDRESS OF THE INSURED OR ANNUITANT ACCORDING TO THE COMPANY'S RECORDS. (b) NOTWITHSTANDING ANY LAW, IF THE COMPANY LEARNS OF THE DEATH OF THE INSURED OR ANNUITANT AND THE BENEFICIARY HAS NOT COMMUNICATED WITH THE INSURER WITHIN FOUR MONTHS AFTER THE DEATH, THE COMPANY SHALL TAKE REASONABLE STEPS TO PAY THE PROCEEDS TO THE BENEFICIARY. (c) EVERY CHANGE OF BENEFICIARY FORM ISSUED BY AN INSURANCE COMPANY UNDER ANY LIFE OR ENDOWMENT INSURANCE POLICY OR ANNUITY CONTRACT TO AN INSURED OR OWNER WHO IS A RESIDENT OF THIS STATE SHALL REQUEST THE FOLLOWING INFORMATION: (i) THE NAME OF EACH BENEFICIARY, OR IF A CLASS OF BENEFICIARIES IS NAMED, THE NAME OF EACH CURRENT BENEFICIARY IN THE CLASS. (ii) THE ADDRESS OF EACH BENEFICIARY. (iii) THE RELATIONSHIP OF EACH BENEFICIARY TO THE INSURED. 8. A LIFE OR ENDOWMENT INSURANCE POLICY OR ANNUITY CONTRACT NOT MATURED BY ACTUAL PROOF OF THE DEATH OF THE INSURED OR ANNUITANT ACCORDING TO THE COMPANY'S RECORDS IS DEEMED MATURED AND THE PROCEEDS ARE DEEMED DUE AND PAYABLE AND ARE PRESUMED ABANDONED AFTER TWO YEARS IF ALL OF THE FOLLOWING CONDITIONS APPLY: (a) THE INSURED HAS ATTAINED, OR WOULD HAVE ATTAINED IF THE INSURED WERE LIVING, THE LIMITING AGE UNDER THE MORTALITY TABLE ON WHICH THE RESERVE IS BASED. (b) THE POLICY WAS IN FORCE AT THE TIME THE INSURED ATTAINED OR WOULD HAVE ATTAINED THE LIMITING AGE SPECIFIED IN SUBDIVISION (a) OF THIS PARAGRAPH. (c) NEITHER THE INSURED NOR ANY OTHER PERSON WHO APPEARS TO HAVE AN INTEREST IN THE POLICY WITHIN THE LAST TWO YEARS ACCORDING TO THE COMPANY'S RECORDS HAS ASSIGNED, READJUSTED OR PAID PREMIUMS ON THE POLICY OR SUBJECTED THE POLICY TO A LOAN, CORRESPONDED IN WRITING WITH THE COMPANY CONCERNING THE POLICY OR OTHERWISE INDICATED AN INTEREST AS EVIDENCED BY A MEMORANDUM OR ANY OTHER RECORD ON FILE WITH AND PREPARED BY AN EMPLOYEE OF THE COMPANY. 9. PROPERTY THAT IS DISTRIBUTABLE BY A BUSINESS ASSOCIATION OR FINANCIAL ORGANIZATION IN A COURSE OF DISSOLUTION IS PRESUMED ABANDONED ONE YEAR AFTER THE PROPERTY BECOMES DISTRIBUTABLE. 10. PROPERTY THAT IS RECEIVED BY A COURT AS PROCEEDS OF A CLASS ACTION AND THAT IS NOT DISTRIBUTED PURSUANT TO THE JUDGMENT IS PRESUMED ABANDONED ONE YEAR AFTER THE DISTRIBUTION DATE. 11. PROPERTY THAT IS HELD BY A COURT, GOVERNMENT, GOVERNMENTAL SUBDIVISION, AGENCY OR INSTRUMENTALITY, EXCEPT FOR SUPPORT AS DEFINED IN SECTION 25-500 OR FOR SPOUSAL MAINTENANCE, IS PRESUMED ABANDONED ONE YEAR AFTER THE PROPERTY BECOMES DISTRIBUTABLE. MONIES HELD FOR THE PAYMENT OF WARRANTS BY A STATE AGENCY THAT REMAIN UNCLAIMED BY THE OWNER AT THE TIME OF THE VOID DATE PRINTED ON THE FACE OF THE WARRANT ARE PRESUMED ABANDONED. 12. WAGES OR OTHER COMPENSATION FOR PERSONAL SERVICES IS PRESUMED ABANDONED ONE YEAR AFTER THE COMPENSATION BECOMES PAYABLE. 13. PROPERTY IN ANY INDIVIDUAL RETIREMENT ACCOUNT, DEFINED BENEFIT PLAN OR OTHER ACCOUNT OR PLAN THAT QUALIFIES FOR TAX DEFERRAL UNDER THE INCOME TAX LAWS OF THE UNITED STATES IS PRESUMED ABANDONED THREE YEARS AFTER ANY OF THE FOLLOWING, WHICHEVER OCCURS FIRST: (a) THE DATE OF THE DISTRIBUTION OR ATTEMPTED DISTRIBUTION OF THE PROPERTY. (b) THE DATE OF THE REQUIRED DISTRIBUTION AS STATED IN THE PLAN OR TRUST AGREEMENT THAT GOVERNS THE PLAN. (c) IF DETERMINABLE BY THE HOLDER, THE DATE SPECIFIED IN THE INCOME TAX LAWS OF THE UNITED STATES BY WHICH DISTRIBUTION OF THE PROPERTY MUST BEGIN IN ORDER TO AVOID A TAX PENALTY. 14. ANY AMOUNT THAT IS PAYABLE ON A CHECK, DRAFT OR SIMILAR INSTRUMENT ON WHICH A BANKING OR FINANCIAL ORGANIZATION OR BUSINESS ASSOCIATION IS DIRECTLY LIABLE, INCLUDING A CASHIER'S CHECK AND A CERTIFIED CHECK, AND THAT HAS BEEN OUTSTANDING FOR MORE THAN FIVE YEARS AFTER THE CHECK, DRAFT OR SIMILAR INSTRUMENT WAS PAYABLE OR AFTER ISSUANCE IF PAYABLE ON DEMAND IS PRESUMED ABANDONED UNLESS WITHIN FIVE YEARS THE OWNER HAS COMMUNICATED IN WRITING WITH THE BANKING OR FINANCIAL ORGANIZATION OR BUSINESS ASSOCIATION CONCERNING THE CHECK, DRAFT OR SIMILAR INSTRUMENT OR OTHERWISE INDICATED AN INTEREST AS EVIDENCED BY A MEMORANDUM OR ANY OTHER RECORD ON FILE AND PREPARED BY AN EMPLOYEE OF THE BANKING OR FINANCIAL ORGANIZATION OR BUSINESS ASSOCIATION. 15. ALL OTHER PROPERTY IS PRESUMED ABANDONED FIVE YEARS AFTER THE OWNER'S RIGHTS TO DEMAND THE PROPERTY OR AFTER THE OBLIGATION TO PAY OR DISTRIBUTE THE PROPERTY ARISES, WHICHEVER OCCURS FIRST. B. AT THE TIME THAT AN INTEREST IS PRESUMED ABANDONED UNDER SUBSECTION A, ANY OTHER PROPERTY RIGHT ACCRUED OR ACCRUING TO THE OWNER AS A RESULT OF THE INTEREST, AND NOT PREVIOUSLY PRESUMED ABANDONED, IS ALSO PRESUMED ABANDONED. C. PROPERTY IS UNCLAIMED IF, FOR THE APPLICABLE PERIOD PRESCRIBED IN SUBSECTION A OF THIS SECTION, THE APPARENT OWNER HAS NOT COMMUNICATED IN WRITING WITH THE HOLDER OR COMMUNICATED BY OTHER MEANS REFLECTED IN A CONTEMPORANEOUS RECORD THAT IS PREPARED BY OR ON BEHALF OF THE HOLDER AND THAT CONCERNS THE PROPERTY OR THE ACCOUNT OR ACCOUNTS IN WHICH THE PROPERTY IS HELD AND HAS NOT OTHERWISE INDICATED AN INTEREST IN THE PROPERTY AND IF THE HOLDER HAS NOT COMMUNICATED IN WRITING WITH REGARD TO THE PROPERTY THAT WOULD OTHERWISE BE UNCLAIMED. A COMMUNICATION WITH AN OWNER BY A PERSON OTHER THAN THE HOLDER OR THE HOLDER'S REPRESENTATIVE WHO HAS NOT IDENTIFIED THE PROPERTY IN WRITING TO THE OWNER IS NOT AN INDICATION OF INTEREST IN THE PROPERTY BY THE OWNER. D. AN INDICATION OF AN OWNER'S INTEREST IN PROPERTY INCLUDES: 1. THE PRESENTMENT OF ANY CHECK OR OTHER INSTRUMENT OF PAYMENT OF ANY DIVIDEND OR OTHER DISTRIBUTION THAT IS MADE WITH RESPECT TO ANY ACCOUNT, UNDERLYING STOCK OR OTHER INTEREST IN A BUSINESS ASSOCIATION OR FINANCIAL ORGANIZATION. IF THE DISTRIBUTION IS MADE BY ELECTRONIC OR SIMILAR MEANS AN INDICATION OF AN OWNER'S INTEREST INCLUDES EVIDENCE THAT THE DISTRIBUTION HAS BEEN RECEIVED. 2. ACTIVITY DIRECTED BY THE OWNER IN THE ACCOUNT IN WHICH THE PROPERTY IS HELD, INCLUDING A DIRECTION BY THE OWNER TO INCREASE, DECREASE OR CHANGE THE AMOUNT OR TYPE OF PROPERTY HELD IN THE ACCOUNT. 3. THE MAKING OF A DEPOSIT TO OR WITHDRAWAL FROM A BANK ACCOUNT. 4. THE PAYMENT OF A PREMIUM WITH RESPECT TO A PROPERTY INTEREST IN AN INSURANCE POLICY. THE APPLICATION OF AN AUTOMATIC PREMIUM LOAN PROVISION OR ANY OTHER NONFORFEITURE PROVISION IN AN INSURANCE POLICY DOES NOT PREVENT A POLICY FROM MATURING OR TERMINATING IF THE INSURED HAS DIED OR IF THE INSURED OR THE BENEFICIARY OF THE POLICY HAS OTHERWISE BECOME ENTITLED TO THE PROCEEDS BEFORE THE DEPLETION OF THE CASH SURRENDER VALUE OF A POLICY BY THE APPLICATION OF THOSE PROVISIONS. E. PROPERTY IS PAYABLE OR DISTRIBUTABLE NOTWITHSTANDING THE OWNER'S FAILURE TO MAKE DEMAND OR PRESENT AN INSTRUMENT OR DOCUMENT OTHERWISE REQUIRED TO OBTAIN PAYMENT. 44-303. Contents of safe deposit box or other safekeeping depository TANGIBLE PROPERTY THAT IS HELD IN A SAFE DEPOSIT BOX OR ANY OTHER SAFEKEEPING DEPOSITORY IN THIS STATE IN THE ORDINARY COURSE OF THE HOLDER'S BUSINESS AND THE PROCEEDS THAT RESULT FROM THE SALE OF THE PROPERTY PERMITTED BY LAW ARE PRESUMED ABANDONED IF THE PROPERTY REMAINS UNCLAIMED BY THE OWNER FOR MORE THAN ONE YEAR AFTER THE EXPIRATION OF THE LEASE OR RENTAL PERIOD ON THE BOX OR OTHER DEPOSITORY. 44-304. Rules for taking custody EXCEPT AS OTHERWISE PROVIDED IN THIS CHAPTER OR BY ANOTHER STATUTE OF THIS STATE, PROPERTY THAT IS PRESUMED ABANDONED, WHETHER LOCATED IN THIS OR ANOTHER STATE, IS SUBJECT TO THE CUSTODY OF THIS STATE IF ANY OF THE FOLLOWING APPLIES: 1. THE LAST KNOWN ADDRESS, AS SHOWN ON THE RECORDS OF THE HOLDER, OF THE APPARENT OWNER IS IN THIS STATE. 2. THE RECORDS OF THE HOLDER DO NOT REFLECT THE IDENTITY OF THE PERSON ENTITLED TO THE PROPERTY AND IT IS ESTABLISHED THAT THE LAST KNOWN ADDRESS OF THE PERSON ENTITLED TO THE PROPERTY IS IN THIS STATE. 3. THE RECORDS OF THE HOLDER DO NOT REFLECT THE LAST KNOWN ADDRESS OF THE APPARENT OWNER AND IT IS ESTABLISHED THAT EITHER: (a) THE LAST KNOWN ADDRESS OF THE PERSON ENTITLED TO THE PROPERTY IS IN THIS STATE. (b) THE HOLDER IS DOMICILED IN THIS STATE OR IS A GOVERNMENT OR GOVERNMENTAL SUBDIVISION, AGENCY OR INSTRUMENTALITY OF THIS STATE AND HAS NOT PREVIOUSLY PAID OR DELIVERED THE PROPERTY TO THE STATE OF THE LAST KNOWN ADDRESS OF THE APPARENT OWNER OR OTHER PERSON ENTITLED TO THE PROPERTY. 4. THE LAST KNOWN ADDRESS, AS SHOWN ON THE RECORDS OF THE HOLDER, OF THE APPARENT OWNER IS IN A STATE THAT DOES NOT PROVIDE FOR THE ESCHEAT OR CUSTODIAL TAKING OF THE PROPERTY AND THE HOLDER IS DOMICILED IN THIS STATE OR IS A GOVERNMENT OR GOVERNMENTAL SUBDIVISION, AGENCY OR INSTRUMENTALITY OF THIS STATE. 5. THE LAST KNOWN ADDRESS, AS SHOWN ON THE RECORDS OF THE HOLDER, OF THE APPARENT OWNER IS IN A FOREIGN NATION AND THE HOLDER IS DOMICILED IN THIS STATE OR IS A GOVERNMENT OR GOVERNMENTAL SUBDIVISION, AGENCY OR INSTRUMENTALITY OF THIS STATE. 6. THE TRANSACTION OUT OF WHICH THE PROPERTY AROSE OCCURRED IN THIS STATE, THE HOLDER IS DOMICILED IN A STATE THAT DOES NOT PROVIDE FOR THE ESCHEAT OR CUSTODIAL TAKING OF THE PROPERTY AND THE LAST KNOWN ADDRESS OF THE APPARENT OWNER OR OTHER PERSON WHO IS ENTITLED TO THE PROPERTY IS UNKNOWN OR IS IN A STATE THAT DOES NOT PROVIDE FOR THE ESCHEAT OR CUSTODIAL TAKING OF THE PROPERTY. 7. THE PROPERTY IS A TRAVELER'S CHECK OR MONEY ORDER THAT WAS PURCHASED IN THIS STATE OR THE ISSUER OF THE TRAVELER'S CHECK OR MONEY ORDER HAS ITS PRINCIPAL PLACE OF BUSINESS IN THIS STATE AND THE ISSUER'S RECORDS SHOW THAT THE INSTRUMENT WAS PURCHASED IN A STATE THAT DOES NOT PROVIDE FOR THE ESCHEAT OR CUSTODIAL TAKING OF THE PROPERTY OR THE RECORDS DO NOT SHOW THE STATE IN WHICH THE INSTRUMENT WAS PURCHASED. 44-305. Dormancy charge A HOLDER, EXCEPT AN AGENCY OF THIS STATE, MAY DEDUCT FROM PROPERTY PRESUMED ABANDONED A CHARGE IMPOSED BY REASON OF THE OWNER'S FAILURE TO CLAIM THE PROPERTY WITHIN A SPECIFIED TIME IF THERE IS A VALID AND ENFORCEABLE WRITTEN CONTRACT BETWEEN THE HOLDER AND THE OWNER UNDER WHICH THE HOLDER MAY IMPOSE THE CHARGE AND THE HOLDER REGULARLY IMPOSES THE CHARGE AND THE CHARGE IS NOT REGULARLY REVERSED OR OTHERWISE CANCELED. THE AMOUNT OF THE DEDUCTION IS LIMITED TO AN AMOUNT THAT IS NOT UNCONSCIONABLE. 44-306. Burden of proof as to property evidenced by record of check or draft A RECORD OF THE ISSUANCE OF A CHECK, DRAFT OR SIMILAR INSTRUMENT IS PRIMA FACIE EVIDENCE OF AN OBLIGATION. IN CLAIMING PROPERTY FROM A HOLDER WHO IS ALSO THE ISSUER, THE DEPARTMENT'S BURDEN OF PROOF AS TO THE EXISTENCE AND AMOUNT OF THE PROPERTY AND ITS ABANDONMENT IS SATISFIED BY SHOWING ISSUANCE OF THE INSTRUMENT AND PASSAGE OF THE REQUISITE PERIOD OF ABANDONMENT. DEFENSES OF PAYMENT, SATISFACTION, DISCHARGE AND WANT OF CONSIDERATION ARE AFFIRMATIVE DEFENSES AND ARE THE BURDEN OF THE HOLDER TO ESTABLISH. 44-307. Report of abandoned property A. A HOLDER OF PROPERTY THAT IS PRESUMED ABANDONED SHALL MAKE A REPORT TO THE DEPARTMENT CONCERNING THE PROPERTY. B. THE REPORT SHALL BE VERIFIED AND SHALL CONTAIN ALL OF THE FOLLOWING: 1. A DESCRIPTION OF THE PROPERTY. 2. EXCEPT FOR A TRAVELER'S CHECK OR MONEY ORDER, THE NAME, IF KNOWN, THE LAST KNOWN ADDRESS, IF ANY, AND THE SOCIAL SECURITY NUMBER OR TAXPAYER IDENTIFICATION NUMBER, IF READILY ASCERTAINABLE, OF THE APPARENT OWNER OF PROPERTY WITH A VALUE OF AT LEAST FIFTY DOLLARS. 3. AN AGGREGATE AMOUNT OF ITEMS WITH A VALUE OF LESS THAN FIFTY DOLLARS EACH. 4. FOR AN AMOUNT OF AT LEAST FIFTY DOLLARS HELD OR OWING UNDER AN ANNUITY OR A LIFE OR ENDOWMENT INSURANCE POLICY, THE FULL NAME AND LAST KNOWN ADDRESS OF THE ANNUITANT OR INSURED AND OF THE BENEFICIARY. 5. FOR PROPERTY HELD IN A SAFE DEPOSIT BOX OR ANY OTHER SAFEKEEPING DEPOSITORY, AN INDICATION OF THE PLACE WHERE IT IS HELD AND WHERE IT MAY BE INSPECTED BY THE DEPARTMENT AND ANY AMOUNT OWING TO THE HOLDER. 6. THE DATE, IF ANY, ON WHICH THE PROPERTY BECAME PAYABLE, DEMANDABLE OR RETURNABLE AND THE DATE OF THE LAST TRANSACTION WITH THE APPARENT OWNER OF THE PROPERTY. 7. OTHER INFORMATION THAT THE DEPARTMENT BY RULE DEEMS NECESSARY FOR THE ADMINISTRATION OF THIS CHAPTER. C. IF A HOLDER OF PROPERTY THAT IS PRESUMED ABANDONED IS A SUCCESSOR TO ANOTHER PERSON WHO PREVIOUSLY HELD THE PROPERTY FOR THE APPARENT OWNER OR THE HOLDER HAS CHANGED THE HOLDER'S NAME WHILE HOLDING THE PROPERTY, THE HOLDER SHALL FILE WITH THE REPORT THE HOLDER'S FORMER NAMES, IF ANY, AND THE KNOWN NAMES AND ADDRESSES OF ALL PREVIOUS HOLDERS OF THE PROPERTY. D. A LIFE INSURANCE COMPANY THAT IS A HOLDER OF PROPERTY THAT IS PRESUMED ABANDONED SHALL FILE THE REPORT PRESCRIBED BY THIS SECTION BEFORE MAY 1, AND THE REPORT SHALL COVER THE PRIOR CALENDAR YEAR. ANY OTHER HOLDER OF PROPERTY THAT IS PRESUMED ABANDONED SHALL FILE THE REPORT BEFORE NOVEMBER 1 AND THE REPORT SHALL COVER THE LAST TWELVE MONTHS BEFORE JULY 1 OF THAT YEAR. A HOLDER MAY MAKE A ONE TIME ELECTION TO ANNUALLY REPORT THE PROPERTY AT THE SAME TIME IT REPORTS ITS INCOME FOR THE PURPOSES OF INCOME TAX PURSUANT TO TITLE 43. E. PRIOR TO ONE HUNDRED TWENTY DAYS BEFORE THE HOLDER OF PROPERTY THAT IS PRESUMED ABANDONED FILES THE REPORT PRESCRIBED IN THIS SECTION, THE HOLDER SHALL SEND A WRITTEN NOTICE TO THE APPARENT OWNER THAT STATES THAT THE HOLDER IS IN POSSESSION OF THE PROPERTY SUBJECT TO THIS CHAPTER IF ALL OF THE FOLLOWING APPLY: 1. THE HOLDER HAS AN ADDRESS IN THE HOLDER'S RECORDS FOR THE APPARENT OWNER AND THE RECORDS DO NOT INDICATE THAT THE ADDRESS IS INACCURATE. 2. THE CLAIM OF THE APPARENT OWNER IS NOT BARRED BY ANY OTHER LAW OF THIS STATE. 3. THE VALUE OF THE PROPERTY IS AT LEAST FIFTY DOLLARS. F. BEFORE THE DATE FOR FILING THE REPORT, THE HOLDER OF PROPERTY THAT IS PRESUMED ABANDONED MAY REQUEST THE DEPARTMENT TO EXTEND THE TIME FOR FILING THE REPORT. THE DEPARTMENT MAY GRANT THE EXTENSION FOR GOOD CAUSE. ON RECEIPT OF THE EXTENSION, THE HOLDER MAY MAKE AN INTERIM PAYMENT ON THE AMOUNT THE HOLDER ESTIMATES WILL ULTIMATELY BE DUE AND THAT PAYMENT TERMINATES THE ACCRUAL OF ADDITIONAL INTEREST ON THE AMOUNT PAID. G. IF THE LAWS OF THIS STATE OR THE TERMS OF THE LIFE INSURANCE POLICY REQUIRE THE COMPANY TO GIVE NOTICE TO THE INSURED OR OWNER THAT ANY AUTOMATIC PREMIUM LOAN PROVISION OR OTHER NONFORFEITURE PROVISION HAS BEEN EXERCISED AND THE NOTICE GIVEN TO AN INSURED OR OWNER WHOSE LAST KNOWN ADDRESS ACCORDING TO THE COMPANY'S RECORDS IS IN THIS STATE IS UNDELIVERABLE, THE COMPANY SHALL MAKE A REASONABLE SEARCH TO ASCERTAIN THE POLICYHOLDER'S CORRECT ADDRESS TO WHICH THE NOTICE MUST BE MAILED. H. STATE AGENCIES THAT HOLD MONIES FOR THE PAYMENT OF VOID WARRANTS SHALL REPORT TO THE DEPARTMENT IN A FORMAT PRESCRIBED BY THE DEPARTMENT ALL WARRANTS VOIDED IN THE PREVIOUS MONTH NOT LATER THAN THE TENTH DAY OF EACH MONTH. 44-308. Payment or delivery of abandoned property A. ON FILING THE REPORT PRESCRIBED IN SECTION 44-307, THE HOLDER OF PROPERTY THAT IS PRESUMED ABANDONED SHALL PAY, DELIVER OR CAUSE TO BE PAID OR DELIVERED TO THE DEPARTMENT THE PROPERTY DESCRIBED IN THE REPORT AS UNCLAIMED. IF THE PROPERTY IS AN AUTOMATICALLY RENEWABLE DEPOSIT AND A PENALTY OR FORFEITURE IN THE PAYMENT OF INTEREST WOULD RESULT, THE TIME FOR COMPLIANCE IS EXTENDED UNTIL A PENALTY OR FORFEITURE WOULD NO LONGER RESULT. THE HOLDER OF TANGIBLE PROPERTY HELD IN A SAFE DEPOSIT BOX OR ANY OTHER SAFEKEEPING DEPOSITORY SHALL DELIVER THE PROPERTY TO THE DEPARTMENT ON FILING THE REPORT PRESCRIBED IN SECTION 44-307. B. IF THE PROPERTY REPORTED TO THE DEPARTMENT IS A SECURITY OR SECURITY ENTITLEMENT PURSUANT TO TITLE 47, CHAPTER 8, THE DEPARTMENT MAY MAKE AN ENDORSEMENT, INSTRUCTION OR ENTITLEMENT ORDER ON BEHALF OF THE APPARENT OWNER TO INVOKE THE DUTY OF THE ISSUER OR ITS TRANSFER AGENT OR THE SECURITIES INTERMEDIARY TO TRANSFER OR DISPOSE OF THE SECURITY OR THE SECURITY ENTITLEMENT IN ACCORDANCE WITH TITLE 47, CHAPTER 8. C. IF THE HOLDER OF PROPERTY REPORTED TO THE DEPARTMENT IS THE ISSUER OF A CERTIFICATED SECURITY, THE DEPARTMENT HAS THE RIGHT TO OBTAIN A REPLACEMENT CERTIFICATE PURSUANT TO SECTION 47-8405, BUT AN INDEMNITY BOND IS NOT REQUIRED. D. AN ISSUER, THE HOLDER AND ANY TRANSFER AGENT OR OTHER PERSON WHO ACTS PURSUANT TO THE INSTRUCTIONS AND ON BEHALF OF THE ISSUER OR HOLDER IN ACCORDANCE WITH THIS SECTION ARE NOT LIABLE TO THE APPARENT OWNER AND ARE INDEMNIFIED AGAINST ALL CLAIMS OF ANY PERSON IN ACCORDANCE WITH SECTION 44-310. E. EACH MONTH A HOLDER OF PROPERTY REPORTED PURSUANT TO SECTION 44-307, SUBSECTION H SHALL REMIT THE PROPERTY WITH THE REPORT OF PROPERTY PRESUMED ABANDONED OR OTHER FORM PRESCRIBED BY THE DEPARTMENT. 44-309. Notice and publication of abandoned property A. THE DEPARTMENT SHALL PUBLISH A NOTICE NOT LATER THAN NOVEMBER 30 OF THE YEAR AFTER THE YEAR IN WHICH ABANDONED PROPERTY HAS BEEN PAID OR DELIVERED TO THE DEPARTMENT. THE DEPARTMENT SHALL CAUSE THE NOTICE TO BE PUBLISHED IN A NEWSPAPER OF GENERAL CIRCULATION IN THE COUNTY IN WHICH THE LAST KNOWN ADDRESS OF ANY PERSON NAMED IN THE NOTICE IS LOCATED. IF A HOLDER DOES NOT REPORT AN ADDRESS FOR THE APPARENT OWNER OR THE ADDRESS IS OUTSIDE THIS STATE, THE DEPARTMENT SHALL CAUSE THE NOTICE TO BE PUBLISHED IN THE COUNTY IN WHICH THE HOLDER HAS ITS PRINCIPAL PLACE OF BUSINESS WITHIN THIS STATE OR ANOTHER COUNTY THAT THE DEPARTMENT REASONABLY SELECTS. THE DEPARTMENT SHALL ENSURE THAT THE NOTICE IS IN A FORM THAT IN THE JUDGMENT OF THE DEPARTMENT IS LIKELY TO ATTRACT THE ATTENTION OF THE APPARENT OWNER OF THE UNCLAIMED PROPERTY. THE NOTICE SHALL CONTAIN ALL OF THE FOLLOWING INFORMATION: 1. THE NAME OF EACH PERSON THAT APPEARS TO BE THE OWNER OF THE PROPERTY AS STATED IN THE REPORT FILED BY THE HOLDER. 2. THE LAST KNOWN ADDRESS OR LOCATION OF EACH PERSON THAT APPEARS TO BE THE OWNER OF THE PROPERTY, IF AN ADDRESS OR LOCATION IS STATED IN THE REPORT FILED BY THE HOLDER. 3. A STATEMENT THAT EXPLAINS THAT THE PROPERTY OF THE OWNER IS PRESUMED ABANDONED AND IS IN THE PROTECTIVE CUSTODY OF THE DEPARTMENT. 4. A STATEMENT THAT ON REQUEST TO THE DEPARTMENT INFORMATION ABOUT THE PROPERTY AND ITS RETURN TO THE OWNER IS AVAILABLE TO A PERSON WHO HAS A LEGAL OR BENEFICIAL INTEREST IN THE PROPERTY. B. THE DEPARTMENT IS NOT REQUIRED TO PUBLISH A NOTICE OF THE NAME, ADDRESS OR LOCATION OF AN OWNER OF PROPERTY THAT HAS A TOTAL VALUE OF LESS THAN FIFTY DOLLARS OR INFORMATION CONCERNING A TRAVELER'S CHECK, MONEY ORDER OR SIMILAR INSTRUMENT. C. IN ADDITION TO THE PUBLICATION REQUIRED IN SUBSECTION A, THE DEPARTMENT SHALL CAUSE TO BE PUBLISHED IN A NEWSPAPER OR NEWSPAPERS OF GENERAL CIRCULATION IN THIS STATE A SERIES OF DISPLAY ADVERTISEMENTS. 44-310. Custody by state; recovery by holder; defense of holder A. ON PAYMENT OR DELIVERY OF PROPERTY TO THE DEPARTMENT, THE STATE ASSUMES CUSTODY AND RESPONSIBILITY FOR THE SAFEKEEPING OF THE PROPERTY. A HOLDER WHO PAYS OR DELIVERS PROPERTY TO THE DEPARTMENT IN GOOD FAITH IS RELIEVED OF ALL LIABILITY WITH RESPECT TO THE PROPERTY THAT ARISES AFTER THE PAYMENT OR DELIVERY. B. A HOLDER WHO HAS PAID MONEY TO THE DEPARTMENT PURSUANT TO THIS CHAPTER MAY SUBSEQUENTLY MAKE PAYMENT TO A PERSON WHO REASONABLY APPEARS TO THE HOLDER TO BE ENTITLED TO PAYMENT. ON A FILING BY THE HOLDER OF PROOF OF PAYMENT AND PROOF THAT THE PAYEE WAS ENTITLED TO THE PAYMENT, THE DEPARTMENT SHALL PROMPTLY REIMBURSE THE HOLDER FOR THE PAYMENT WITHOUT IMPOSING ANY FEE OR OTHER CHARGE. IF THE HOLDER SEEKS REIMBURSEMENT FOR A PAYMENT MADE ON A NEGOTIABLE INSTRUMENT, INCLUDING A TRAVELER'S CHECK OR MONEY ORDER, THE DEPARTMENT SHALL REIMBURSE THE HOLDER IF THE HOLDER FILES PROOF THAT THE INSTRUMENT WAS DULY PRESENTED AND THAT PAYMENT WAS MADE TO A PERSON WHO REASONABLY APPEARED TO BE ENTITLED TO PAYMENT. THE DEPARTMENT SHALL REIMBURSE THE HOLDER FOR PAYMENT EVEN IF THE PAYMENT WAS MADE TO A PERSON WHOSE CLAIM WAS BARRED PURSUANT TO SECTION 44-321. C. WITHOUT PAYING ANY FEE OR OTHER CHARGE, A HOLDER WHO HAS DELIVERED PROPERTY OTHER THAN MONEY TO THE DEPARTMENT PURSUANT TO THIS CHAPTER MAY RECLAIM THE PROPERTY IF THE PROPERTY IS STILL IN THE POSSESSION OF THE DEPARTMENT AND THE HOLDER FILES PROOF THAT THE APPARENT OWNER HAS CLAIMED THE PROPERTY FROM THE HOLDER. D. THE DEPARTMENT MAY ACCEPT A HOLDER'S AFFIDAVIT AS SUFFICIENT PROOF OF THE HOLDER'S RIGHT TO RECOVER MONEY AND PROPERTY UNDER THIS CHAPTER. E. IF A HOLDER PAYS OR DELIVERS PROPERTY TO THE DEPARTMENT IN GOOD FAITH AND AFTER THE PAYMENT OR DELIVERY ANOTHER PERSON CLAIMS THE PROPERTY FROM THE HOLDER OR ANOTHER STATE CLAIMS THE MONEY OR PROPERTY UNDER THAT STATE'S LAWS RELATING TO ESCHEAT OR ABANDONED OR UNCLAIMED PROPERTY, ON WRITTEN NOTICE OF THE CLAIM THE DEPARTMENT SHALL DEFEND THE HOLDER AGAINST THE CLAIM AND INDEMNIFY THE HOLDER AGAINST ANY LIABILITY ON THE CLAIM THAT RESULTS FROM PAYMENT OR DELIVERY OF THE PROPERTY TO THE DEPARTMENT. F. IF THE DEPARTMENT RECEIVES ANY PROPERTY THAT IS REMOVED FROM A SAFE DEPOSIT BOX OR ANY OTHER SAFEKEEPING DEPOSITORY THE DEPARTMENT IS SUBJECT TO THE HOLDER'S RIGHT TO BE REIMBURSED FOR THE COST OF THE OPENING AND TO ANY VALID LIEN OR CONTRACT THAT PROVIDES FOR THE HOLDER TO BE REIMBURSED FOR UNPAID RENT OR STORAGE CHARGES. THE DEPARTMENT SHALL REIMBURSE THE HOLDER FROM THE PROCEEDS THAT REMAIN AFTER DEDUCTING THE EXPENSE INCURRED BY THE DEPARTMENT IN SELLING THE PROPERTY. G. FOR THE PURPOSES OF THIS SECTION, PAYMENT OR DELIVERY IS MADE IN GOOD FAITH IF ALL OF THE FOLLOWING REQUIREMENTS ARE MET: 1. PAYMENT OR DELIVERY WAS MADE IN A REASONABLE ATTEMPT TO COMPLY WITH THIS CHAPTER. 2. AT THE TIME OF THE PAYMENT OR DELIVERY THE HOLDER WAS NOT IN BREACH OF A FIDUCIARY OBLIGATION WITH RESPECT TO THE PROPERTY AND BASED ON FACTS KNOWN BY THE HOLDER AT THE TIME OF THE PAYMENT OR DELIVERY THE HOLDER REASONABLY BELIEVED THAT THE PROPERTY WAS PRESUMED ABANDONED. 3. RECORDS PURSUANT TO WHICH THE PAYMENT OR DELIVERY WAS MADE MEET REASONABLE COMMERCIAL STANDARDS OF PRACTICE. 44-311. Crediting of owner's account; interest A. A HOLDER SHALL NOT CEASE PAYMENT OF INTEREST ON AN INTEREST BEARING DEMAND, SAVINGS OR TIME DEPOSIT, INCLUDING A DEPOSIT THAT IS AUTOMATICALLY RENEWABLE, UNLESS ALL OF THE FOLLOWING CONDITIONS APPLY: 1. THERE IS AN ENFORCEABLE WRITTEN CONTRACT BETWEEN THE HOLDER AND THE OWNER OF THE PROPERTY THAT ALLOWS THE HOLDER TO IMPOSE THE CHARGES OR CEASE PAYMENT OF INTEREST. 2. FOR PROPERTY THAT IS MORE THAN TWO DOLLARS, NOT MORE THAN THREE MONTHS BEFORE THE INITIAL CESSATION OF INTEREST THE HOLDER GAVE WRITTEN NOTICE TO THE OWNER AT THE LAST KNOWN ADDRESS OF THE OWNER THAT STATED THAT INTEREST WOULD CEASE. 3. THE HOLDER REGULARLY CEASES PAYMENT OF INTEREST AND DOES NOT REGULARLY RETROACTIVELY CREDIT INTEREST ON THAT TYPE OF PROPERTY. B. IF PROPERTY OTHER THAN MONEY IS DELIVERED TO THE DEPARTMENT PURSUANT TO THIS CHAPTER, THE DEPARTMENT SHALL PROVIDE THE OWNER WITH ANY INCOME OR GAIN REALIZED OR ACCRUING ON THE PROPERTY AT OR BEFORE LIQUIDATION OR CONVERSION OF THE PROPERTY TO MONEY. IF THE PROPERTY DELIVERED TO THE DEPARTMENT IS AN INTEREST BEARING DEMAND, SAVINGS OR TIME DEPOSIT, INCLUDING A DEPOSIT THAT IS AUTOMATICALLY RENEWABLE, THE DEPARTMENT SHALL PAY INTEREST AT THE LEGAL RATE OR ANY LESSER RATE THAT THE PROPERTY EARNED WHILE IN THE POSSESSION OF THE HOLDER. INTEREST BEGINS TO ACCRUE WHEN THE PROPERTY IS DELIVERED TO THE DEPARTMENT AND CEASES TEN YEARS AFTER DELIVERY OR ON THE DATE THE DEPARTMENT PAYS THE OWNER, WHICHEVER OCCURS FIRST. 44-312. Public sale of abandoned property A. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, WITHIN THREE YEARS AFTER RECEIVING ABANDONED PROPERTY THE DEPARTMENT SHALL SELL THE PROPERTY TO THE HIGHEST BIDDER AT A PUBLIC SALE AT A LOCATION IN THIS STATE THAT IN THE JUDGMENT OF THE DEPARTMENT AFFORDS THE MOST FAVORABLE MARKET FOR THE PROPERTY. THE DEPARTMENT MAY DECLINE THE HIGHEST BID AND REOFFER THE PROPERTY FOR SALE IF THE DEPARTMENT CONSIDERS THE BID TO BE INSUFFICIENT. THE DEPARTMENT IS NOT REQUIRED TO OFFER THE PROPERTY FOR SALE IF THE DEPARTMENT DETERMINES THAT THE PROBABLE COST OF THE SALE WILL EXCEED THE PROCEEDS FROM THE SALE. BEFORE CONDUCTING A SALE PURSUANT TO THIS SECTION, THE DEPARTMENT SHALL CAUSE A NOTICE TO BE PUBLISHED AT LEAST THREE WEEKS BEFORE THE SALE IN A NEWSPAPER OF GENERAL CIRCULATION IN THE COUNTY IN WHICH THE SALE WILL OCCUR. B. THE DEPARTMENT SHALL SELL SECURITIES THAT ARE LISTED ON AN ESTABLISHED STOCK EXCHANGE AT PRICES PREVAILING ON THE EXCHANGE AT THE TIME OF THE SALE. THE DEPARTMENT MAY SELL OTHER SECURITIES OVER THE COUNTER AT PRICES PREVAILING AT THE TIME OF THE SALE OR BY ANY REASONABLE METHOD SELECTED BY THE DEPARTMENT. C. IF THE DEPARTMENT SELLS THE SECURITIES BEFORE THE EXPIRATION OF THREE YEARS AFTER THE HOLDER DELIVERS THE SECURITIES TO THE DEPARTMENT, A PERSON WHO MAKES A CLAIM PURSUANT TO THIS CHAPTER BEFORE THE END OF THE THREE YEAR PERIOD IS ENTITLED TO RECEIVE FROM THE DEPARTMENT THE PROCEEDS OF THE SALE OF THE SECURITIES OR THE MARKET VALUE OF THE SECURITIES AT THE TIME THE CLAIM IS MADE, WHICHEVER IS MORE, PLUS DIVIDENDS, INTEREST AND OTHER INCREMENTS ACCRUED UP TO THE TIME THE CLAIM IS MADE, MINUS ALL EXPENSES OF THE SALE. A PERSON WHO MAKES A CLAIM PURSUANT TO THIS CHAPTER AFTER THE EXPIRATION OF THE THREE YEAR PERIOD IS ENTITLED TO RECEIVE FROM THE DEPARTMENT THE SECURITIES THAT THE HOLDER DELIVERED TO THE DEPARTMENT IF THE SECURITIES REMAIN IN THE DEPARTMENT'S CUSTODY OR THE PERSON IS ENTITLED TO RECEIVE THE NET PROCEEDS OF THE SALE. EXCEPT IN A CASE OF INTENTIONAL MISCONDUCT OR MALFEASANCE BY THE DEPARTMENT, THE PERSON IS NOT ENTITLED TO RECEIVE ANY APPRECIATION IN THE VALUE OF THE PROPERTY THAT OCCURRED AFTER THE DELIVERY TO THE DEPARTMENT. D. A PURCHASER OF PROPERTY AT A SALE CONDUCTED BY THE DEPARTMENT PURSUANT TO THIS CHAPTER TAKES THE PROPERTY FREE OF ALL CLAIMS OF THE OWNER OR PREVIOUS HOLDER AND OF ALL PERSONS CLAIMING THROUGH OR UNDER THE OWNER OR PREVIOUS HOLDER. THE DEPARTMENT SHALL EXECUTE ALL DOCUMENTS NECESSARY TO COMPLETE THE TRANSFER OF OWNERSHIP. 44-313. Deposit of monies; definition A. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION OR SECTION 44-314, THE DEPARTMENT SHALL TRANSMIT ALL MONIES RECEIVED PURSUANT TO THIS CHAPTER, INCLUDING THE PROCEEDS FROM THE SALE OF ABANDONED PROPERTY PURSUANT TO SECTION 44-312, TO THE STATE TREASURER FOR DEPOSIT IN THE STATE GENERAL FUND, AND THE STATE TREASURER SHALL TRANSFER: 1. THIRTY-FIVE PER CENT OF THE MONIES TO THE HOUSING TRUST FUND ESTABLISHED BY SECTION 41-1512. 2. TWENTY PER CENT OF THE MONIES TO THE HOUSING TRUST FUND ESTABLISHED BY SECTION 41-1512. THESE MONIES SHALL BE USED EXCLUSIVELY FOR THE DEVELOPMENT OF ELIGIBLE AND VIABLE AFFORDABLE HOUSING IN RURAL AREAS AND FOR THE PURPOSES AUTHORIZED UNDER THE HOUSING DEVELOPMENT FUND ESTABLISHED BY SECTION 41-1518. 3. TWENTY PER CENT OF THE MONIES TO THE FUNDS IN THE AMOUNTS PROVIDED IN SECTION 5-113, SUBSECTION A. B. THE DEPARTMENT SHALL DEPOSIT MONIES FROM UNCLAIMED SHARES AND DIVIDENDS OF ANY CORPORATION INCORPORATED UNDER THE LAWS OF THIS STATE IN THE PERMANENT STATE SCHOOL FUND PURSUANT TO ARTICLE XI, SECTION 8, CONSTITUTION OF ARIZONA. C. THE DEPARTMENT SHALL RETAIN IN A SEPARATE TRUST FUND AT LEAST ONE HUNDRED THOUSAND DOLLARS FROM WHICH THE DEPARTMENT SHALL PAY CLAIMS. D. BEFORE MAKING THE DEPOSIT, THE DEPARTMENT SHALL RECORD THE NAME AND LAST KNOWN ADDRESS OF EACH PERSON WHO APPEARS FROM THE HOLDERS' REPORTS TO BE ENTITLED TO THE PROPERTY AND THE NAME AND LAST KNOWN ADDRESS OF EACH INSURED PERSON OR ANNUITANT AND BENEFICIARY. THE DEPARTMENT SHALL ALSO RECORD THE POLICY OR CONTRACT NUMBER OF EACH POLICY OR CONTRACT OF AN INSURANCE COMPANY THAT IS LISTED IN THE REPORT, THE NAME OF THE COMPANY AND THE AMOUNT DUE. THE DEPARTMENT SHALL MAKE THE RECORD AVAILABLE FOR PUBLIC INSPECTION DURING REASONABLE BUSINESS HOURS. E. BEFORE MAKING ANY DEPOSIT TO THE CREDIT OF THE STATE GENERAL FUND, THE DEPARTMENT MAY DEDUCT, SUBJECT TO LEGISLATIVE APPROPRIATION, ADMINISTRATIVE EXPENSES IN THE FOLLOWING ORDER OF PRIORITY: 1. ANY COSTS IN CONNECTION WITH THE SALE OF ABANDONED PROPERTY. 2. COSTS OF MAILING AND PUBLICATION IN CONNECTION WITH ANY ABANDONED PROPERTY. 3. REASONABLE DEPARTMENT SERVICE CHARGES. 4. COSTS INCURRED IN EXAMINING RECORDS OF HOLDERS OF PROPERTY AND IN COLLECTING THE PROPERTY FROM THOSE HOLDERS. 5. LAWFUL HOLDER CHARGES. F. THE DEPARTMENT SHALL DEPOSIT MONIES RECEIVED PURSUANT TO SECTION 35-187 IN THE HOMELESS TRUST FUND AS PROVIDED IN SECTION 41-2021 IN AN AMOUNT OF NOT MORE THAN ONE MILLION DOLLARS. THE DEPARTMENT SHALL DEPOSIT MONIES IN EXCESS OF ONE MILLION DOLLARS PURSUANT TO THE DISTRIBUTION DESCRIBED IN SUBSECTIONS A AND B OF THIS SECTION. BEFORE MAKING ANY DEPOSIT IN THE HOMELESS TRUST FUND, THE DEPARTMENT SHALL DEDUCT ANY AMOUNTS RELATED TO OWNER CLAIMS AND INTEREST PAYMENTS. G. FOR THE PURPOSES OF THIS SECTION, "RURAL AREA" MEANS EITHER: 1. A COUNTY WITH A POPULATION OF LESS THAN FOUR HUNDRED THOUSAND PERSONS. 2. A CENSUS COUNTY DIVISION WITH LESS THAN FIFTY THOUSAND PERSONS IN A COUNTY WITH A POPULATION OF FOUR HUNDRED THOUSAND OR MORE PERSONS. 44-314. Federal deposit insurance corporation trust fund; temporary custody; interest A. THE FEDERAL DEPOSIT INSURANCE CORPORATION TRUST FUND IS ESTABLISHED CONSISTING OF MONIES THE DEPARTMENT RECEIVES FROM THE FEDERAL DEPOSIT INSURANCE CORPORATION UNDER THE UNCLAIMED DEPOSITS AMENDMENTS ACT OF 1993 (P.L. 103-44; 107 STAT. 220; 12 UNITED STATES CODE SECTION 1822(e)). THE DEPARTMENT SHALL ADMINISTER THE FUND. MONIES IN THE FUND ARE CONTINUOUSLY APPROPRIATED. B. IF THE MONIES DEPOSITED IN THE FEDERAL DEPOSIT INSURANCE CORPORATION TRUST FUND ARE NOT CLAIMED BY THE OWNER WITHIN TEN YEARS AFTER BEING SURRENDERED TO THE DEPARTMENT, THE DEPARTMENT SHALL RETURN THE MONIES TO THE FEDERAL DEPOSIT INSURANCE CORPORATION. C. THIS STATE RETAINS ALL INTEREST EARNED ON THE MONIES IN THE FEDERAL DEPOSIT INSURANCE CORPORATION TRUST FUND. THE STATE TREASURER SHALL DEPOSIT THE INTEREST EARNED ON THE MONIES IN THE FEDERAL DEPOSIT INSURANCE CORPORATION TRUST FUND AS FOLLOWS: 1. SIXTY-FIVE PER CENT IN THE STATE GENERAL FUND. 2. THIRTY-FIVE PER CENT IN THE HOUSING TRUST FUND ESTABLISHED BY SECTION 41-1512. 44-315. Confidentiality; violation; classification; definitions A. THE DEPARTMENT MAY DISCLOSE CONFIDENTIAL INFORMATION RELATING TO AN ITEM OF PROPERTY TO THE CLAIMANT, A SUCCESSOR IN INTEREST TO THE CLAIMANT OR A DESIGNEE OF THE CLAIMANT WHO IS AUTHORIZED IN WRITING BY THE CLAIMANT. B. THE DEPARTMENT ALSO MAY DISCLOSE CONFIDENTIAL INFORMATION TO: 1. ANY EMPLOYEE OF THE DEPARTMENT WHOSE OFFICIAL DUTIES INVOLVE UNCLAIMED PROPERTY. 2. THE OFFICE OF THE ATTORNEY GENERAL FOR ITS USE IN PROVIDING COUNSEL RELATING TO UNCLAIMED PROPERTY ADMINISTRATION OR IN PREPARATION FOR ANY PROCEEDING INVOLVING UNCLAIMED PROPERTY BEFORE THE DEPARTMENT OR ANY OTHER AGENCY OR BOARD OF THIS STATE OR BEFORE ANY GRAND JURY OR ANY STATE OR FEDERAL COURT. 3. PURSUANT TO A WRITTEN AGREEMENT BETWEEN THE DEPARTMENT AND ANOTHER STATE, A STATE UNCLAIMED PROPERTY OFFICIAL FROM THE OTHER STATE IF THE OTHER STATE GRANTS SUBSTANTIALLY SIMILAR PRIVILEGES TO THE DEPARTMENT FOR THE SAME TYPE OF INFORMATION. 4. THE AUDITOR GENERAL, IN CONNECTION WITH ANY AUDIT OF THE DEPARTMENT. 5. ANY PERSON TO THE EXTENT NECESSARY FOR EFFECTIVE UNCLAIMED PROPERTY ADMINISTRATION IN CONNECTION WITH THE PROCESSING, STORAGE, TRANSMISSION AND REPRODUCTION OF THE INFORMATION AND THE PROGRAMMING, MAINTENANCE, REPAIR, TESTING AND PROCUREMENT OF EQUIPMENT FOR PURPOSES OF UNCLAIMED PROPERTY ADMINISTRATION. C. THE DEPARTMENT MAY DISCLOSE CONFIDENTIAL INFORMATION IN ANY STATE OR FEDERAL JUDICIAL OR ADMINISTRATIVE PROCEEDING RELATING TO UNCLAIMED PROPERTY ADMINISTRATION IF: 1. THE CLAIMANT IS A PARTY TO THE PROCEEDING. 2. THE TREATMENT OF AN ITEM REFLECTED IN THE INFORMATION IS DIRECTLY RELATED TO THE RESOLUTION OF AN ISSUE IN THE PROCEEDING. 3. THE INFORMATION DIRECTLY RELATES TO A TRANSACTIONAL RELATIONSHIP BETWEEN A PERSON WHO IS A PARTY TO THE PROCEEDING AND THE CLAIMANT AND THE INFORMATION DIRECTLY AFFECTS THE RESOLUTION OF AN ISSUE IN THE PROCEEDING. D. THE DEPARTMENT MAY DISCLOSE IDENTITY INFORMATION FOR PURPOSES OF NOTIFYING PERSONS WHO APPEAR TO BE ENTITLED TO UNCLAIMED PROPERTY IN THE MANNER DESCRIBED IN SECTION 44-309. E. THE DEPARTMENT MAY DISCLOSE STATISTICAL INFORMATION GATHERED FROM CONFIDENTIAL INFORMATION IF IT DOES NOT DISCLOSE CONFIDENTIAL INFORMATION ATTRIBUTABLE TO A CLAIMANT. F. A COURT MAY ORDER THE DEPARTMENT TO DISCLOSE CONFIDENTIAL INFORMATION PERTAINING TO A PARTY TO AN ACTION. AN ORDER SHALL BE MADE ONLY ON A SHOWING OF GOOD CAUSE AND THAT THE PARTY WHO SEEKS THE INFORMATION HAS DEMANDED THE INFORMATION FROM THE CLAIMANT. G. IF THE DEPARTMENT IS REQUIRED OR PERMITTED TO DISCLOSE CONFIDENTIAL INFORMATION, IT MAY CHARGE THE PERSON OR AGENCY THAT REQUESTS THE INFORMATION FOR THE REASONABLE COST OF THE DEPARTMENT'S SERVICES. H. A DISCLOSURE OF CONFIDENTIAL INFORMATION IN VIOLATION OF THIS SECTION IS A CLASS 1 MISDEMEANOR. A KNOWING DISCLOSURE OF CONFIDENTIAL INFORMATION IS A CLASS 6 FELONY. I. FOR THE PURPOSES OF THIS SECTION: 1. "CLAIMANT" MEANS A PERSON OR ENTITY THAT CLAIMS TO HAVE A PROPERTY INTEREST IN THE ITEM OF PROPERTY THAT IS PRESUMED ABANDONED. 2. "CONFIDENTIAL INFORMATION" INCLUDES REPORTS FILED BY HOLDERS OF PROPERTY PRESUMED ABANDONED UNDER THIS CHAPTER, A CLAIMANT'S APPLICATION AND DOCUMENTS SUBMITTED TO SUPPORT A CLAIM AND INFORMATION DISCOVERED BY THE DEPARTMENT CONCERNING CLAIMS AND CLAIMANTS. 44-316. Claim of another state to recover property A. AFTER PROPERTY HAS BEEN PAID OR DELIVERED TO THE DEPARTMENT PURSUANT TO THIS CHAPTER, ANOTHER STATE MAY RECOVER THE PROPERTY IF ANY OF THE FOLLOWING APPLIES: 1. THE PROPERTY WAS PAID OR DELIVERED TO THE CUSTODY OF THIS STATE BECAUSE THE RECORDS OF THE HOLDER DID NOT INDICATE A LAST KNOWN LOCATION OF THE APPARENT OWNER WITHIN THE BORDERS OF THE OTHER STATE AND THE OTHER STATE ESTABLISHES THAT THE APPARENT OWNER OR OTHER PERSON WHO IS ENTITLED TO THE PROPERTY WAS LAST KNOWN TO BE LOCATED WITHIN THE BORDERS OF THAT STATE AND UNDER THE LAWS OF THAT STATE THE PROPERTY HAS ESCHEATED OR BECOME SUBJECT TO A CLAIM OF ABANDONMENT BY THAT STATE. 2. THE PROPERTY WAS PAID OR DELIVERED TO THE CUSTODY OF THIS STATE BECAUSE AT THE TIME OF THE PAYMENT OR DELIVERY THE LAWS OF THE OTHER STATE DID NOT PROVIDE FOR THE ESCHEAT OR CUSTODIAL TAKING OF THE PROPERTY, BUT AFTER THE PAYMENT OR DELIVERY THE OTHER STATE ENACTS LAWS THAT CAUSE THE PROPERTY TO ESCHEAT OR BECOME SUBJECT TO A CLAIM OF ABANDONMENT BY THAT STATE. 3. THE RECORDS OF THE HOLDER DID NOT ACCURATELY IDENTIFY THE OWNER OF THE PROPERTY AND THE LAST KNOWN LOCATION OF THE OWNER WITHIN THE BORDERS OF ANOTHER STATE AND UNDER THE LAWS OF THAT STATE THE PROPERTY HAS ESCHEATED OR BECOME SUBJECT TO A CLAIM OF ABANDONMENT BY THAT STATE. 4. THE PROPERTY WAS SUBJECTED TO CUSTODY BY THIS STATE PURSUANT TO SECTION 44-304, PARAGRAPH 6 AND UNDER THE LAWS OF THE STATE OF DOMICILE OF THE HOLDER THE PROPERTY HAS ESCHEATED OR BECOME SUBJECT TO A CLAIM OF ABANDONMENT BY THAT STATE. 5. THE PROPERTY IS A SUM THAT IS PAYABLE ON A TRAVELER'S CHECK, MONEY ORDER OR SIMILAR INSTRUMENT THAT WAS PURCHASED IN THE OTHER STATE AND DELIVERED TO THE CUSTODY OF THIS STATE PURSUANT TO SECTION 44-304, PARAGRAPH 7 AND UNDER THE LAWS OF THE OTHER STATE THE PROPERTY HAS ESCHEATED OR BECOME SUBJECT TO A CLAIM OF ABANDONMENT BY THAT STATE. B. IN ORDER TO FILE A CLAIM TO RECOVER ESCHEATED OR ABANDONED PROPERTY, ANOTHER STATE SHALL PRESENT THE CLAIM IN A FORM PRESCRIBED BY THE DEPARTMENT. THE DEPARTMENT SHALL DECIDE THE CLAIM WITHIN NINETY DAYS AFTER THE CLAIM IS PRESENTED. THE DEPARTMENT SHALL ALLOW THE CLAIM ON DETERMINING THAT THE OTHER STATE IS ENTITLED TO THE ABANDONED PROPERTY PURSUANT TO SUBSECTION A OF THIS SECTION. C. BEFORE RECOVERING PROPERTY UNDER THIS SECTION, THE DEPARTMENT SHALL REQUIRE THE OTHER STATE TO AGREE TO INDEMNIFY THIS STATE AND ITS OFFICERS AND EMPLOYEES AGAINST ANY LIABILITY ON A CLAIM TO THE PROPERTY. 44-317. Filing claim with department A. ANY PERSON, EXCLUDING ANOTHER STATE, WHO CLAIMS PROPERTY THAT WAS PAID OR DELIVERED TO THE DEPARTMENT MAY FILE A CLAIM ON A FORM PRESCRIBED BY THE DEPARTMENT AND VERIFIED BY THE CLAIMANT. B. WITHIN NINETY DAYS AFTER A CLAIM IS FILED THE DEPARTMENT SHALL ALLOW OR DENY THE CLAIM AND SHALL GIVE WRITTEN NOTICE OF THE DECISION TO THE CLAIMANT. IF THE CLAIM IS DENIED THE DEPARTMENT SHALL INFORM THE CLAIMANT OF THE REASONS FOR THE DENIAL AND SHALL SPECIFY WHAT ADDITIONAL EVIDENCE IS REQUIRED BEFORE THE CLAIM WILL BE ALLOWED. THE CLAIMANT MAY THEN FILE A NEW CLAIM WITH THE DEPARTMENT OR MAY MAINTAIN AN ACTION PURSUANT TO SECTION 44-318. C. WITHIN THIRTY DAYS AFTER A CLAIM IS ALLOWED THE DEPARTMENT SHALL DELIVER THE PROPERTY OR PAY THE NET PROCEEDS OF A SALE OF THE PROPERTY TO THE CLAIMANT, INCLUDING ANY DIVIDEND, INTEREST OR OTHER INCREMENT TO WHICH THE CLAIMANT IS ENTITLED PURSUANT TO SECTIONS 44-311 AND 44-312. D. A HOLDER WHO PAYS THE OWNER FOR PROPERTY THAT HAS BEEN DELIVERED TO THE DEPARTMENT AND THAT IF CLAIMED FROM THE DEPARTMENT BY THE OWNER WOULD BE SUBJECT TO AN INCREMENT PURSUANT TO SECTIONS 44-311 AND 44-312 SHALL RECOVER FROM THE DEPARTMENT THE AMOUNT OF THE INCREMENT. 44-318. Action to establish claim; attorney fees A PERSON WHO IS AGGRIEVED BY A DECISION OF THE DEPARTMENT, OR WHOSE CLAIM HAS NOT BEEN DECIDED WITHIN NINETY DAYS AFTER FILING THE CLAIM, MAY BEGIN AN ORIGINAL ACTION IN SUPERIOR COURT TO ESTABLISH THE CLAIM BY NAMING THE DEPARTMENT AS A DEFENDANT. IF THE AGGRIEVED PERSON ESTABLISHES THE CLAIM IN AN ACTION AGAINST THE DEPARTMENT, THE COURT MAY AWARD THE CLAIMANT REASONABLE ATTORNEY FEES. 44-319. Election to take payment or delivery A. THE DEPARTMENT MAY DECLINE TO RECEIVE PROPERTY THAT IS REPORTED UNDER THIS CHAPTER AND THAT THE DEPARTMENT CONSIDERS TO HAVE A VALUE OF LESS THAN THE COSTS OF NOTICE AND SALE. B. WITH THE WRITTEN CONSENT OF THE DEPARTMENT AND ON TERMS PRESCRIBED BY THE DEPARTMENT, A HOLDER MAY REPORT AND DELIVER PROPERTY BEFORE THE PROPERTY IS PRESUMED ABANDONED. THE DEPARTMENT SHALL HOLD THAT PROPERTY, AND THAT PROPERTY IS NOT PRESUMED ABANDONED UNTIL IT OTHERWISE WOULD BE PRESUMED ABANDONED PURSUANT TO THIS CHAPTER. 44-320. Destruction or disposition of property having no substantial commercial value; immunity from liability IF THE DEPARTMENT DETERMINES AFTER INVESTIGATION THAT PROPERTY DELIVERED PURSUANT TO THIS CHAPTER HAS NO SUBSTANTIAL COMMERCIAL VALUE, THE DEPARTMENT MAY DESTROY OR OTHERWISE DISPOSE OF THE PROPERTY AT ANY TIME. A PERSON SHALL NOT MAINTAIN AN ACTION OR PROCEEDING AGAINST THIS STATE, THE DEPARTMENT OR ANY OFFICER OF THIS STATE OR AGAINST THE HOLDER FOR OR ON ACCOUNT OF AN ACT OF THE DEPARTMENT PURSUANT TO THIS SECTION, EXCEPT FOR INTENTIONAL MISCONDUCT OR MALFEASANCE. 44-321. Periods of limitation A. THE EXPIRATION OF A PERIOD OF LIMITATION ON THE OWNER'S RIGHT TO RECEIVE OR RECOVER PROPERTY, WHETHER SPECIFIED BY CONTRACT, STATUTE OR COURT ORDER, DOES NOT PRECLUDE THE PROPERTY FROM BEING PRESUMED ABANDONED OR AFFECT A DUTY TO FILE A REPORT OR TO PAY OR DELIVER OR TRANSFER PROPERTY TO THE DEPARTMENT AS REQUIRED BY THIS CHAPTER. B. THE DEPARTMENT SHALL NOT BEGIN AN ACTION OR PROCEEDING TO ENFORCE THIS CHAPTER IN REGARD TO THE REPORTING, DELIVERY OR PAYMENT OF PROPERTY MORE THAN FOUR YEARS AFTER THE HOLDER IDENTIFIED THE PROPERTY IN A REPORT FILED WITH THE DEPARTMENT OR GAVE EXPRESS NOTICE TO THE DEPARTMENT OF A DISPUTE REGARDING THE PROPERTY. IF A HOLDER OMITS FROM A REPORT ANY AMOUNT OF PROPERTY THAT IS PROPERLY INCLUDIBLE AND THAT IS IN EXCESS OF TWENTY-FIVE PER CENT OF THE AMOUNT OF PROPERTY STATED IN THE REPORT, THE DEPARTMENT MAY BEGIN AN ACTION OR PROCEEDING TO ENFORCE THIS CHAPTER AT ANY TIME WITHIN SIX YEARS AFTER THE REPORT WAS FILED. IF THERE IS NO REPORT OR OTHER EXPRESS NOTICE, THE PERIOD OF LIMITATION IS TOLLED. THE PERIOD OF LIMITATION IS ALSO TOLLED IF THE HOLDER FILES A FRAUDULENT REPORT. 44-322. Requests for reports; examination of records A. THE DEPARTMENT MAY REQUIRE ANY PERSON WHO HAS NOT FILED A REPORT OR ANY PERSON WHO THE DEPARTMENT BELIEVES HAS FILED AN INACCURATE, INCOMPLETE OR FALSE REPORT TO FILE A VERIFIED REPORT IN A FORM SPECIFIED BY THE DEPARTMENT. THE REPORT SHALL: 1. STATE WHETHER THE PERSON IS HOLDING PROPERTY THAT IS REPORTABLE UNDER THIS CHAPTER. 2. DESCRIBE THE PROPERTY NOT PREVIOUSLY REPORTED OR PROPERTY ABOUT WHICH THE DEPARTMENT HAS INQUIRED. 3. IDENTIFY AND STATE THE AMOUNT OF PROPERTY THAT MAY BE IN ISSUE. B. AT REASONABLE TIMES AND ON REASONABLE NOTICE, THE DEPARTMENT MAY EXAMINE THE RECORDS OF ANY PERSON TO DETERMINE WHETHER THE PERSON HAS COMPLIED WITH THIS CHAPTER. THE DEPARTMENT MAY CONDUCT THE EXAMINATION EVEN IF THE PERSON BELIEVES THAT IT IS NOT IN POSSESSION OF ANY PROPERTY THAT MUST BE REPORTED, PAID OR DELIVERED PURSUANT TO THIS CHAPTER. C. AT REASONABLE TIMES THE DEPARTMENT MAY EXAMINE THE RECORDS OF AN AGENT, INCLUDING A DIVIDEND DISBURSING AGENT OR TRANSFER AGENT, OF A BUSINESS ASSOCIATION OR FINANCIAL ORGANIZATION THAT IS THE HOLDER OF PROPERTY PRESUMED ABANDONED IF THE DEPARTMENT HAS GIVEN THE NOTICE PRESCRIBED IN SUBSECTION B OF THIS SECTION TO BOTH THE ASSOCIATION OR ORGANIZATION AND THE AGENT AT LEAST NINETY DAYS BEFORE THE EXAMINATION. D. DOCUMENTS AND WORKING PAPERS THAT THE DEPARTMENT OR THE DEPARTMENT'S AGENT, EMPLOYEE OR DESIGNATED REPRESENTATIVE OBTAINS OR COMPILES IN THE COURSE OF CONDUCTING AN EXAMINATION ARE CONFIDENTIAL AND ARE NOT PUBLIC RECORDS. HOWEVER, NOTWITHSTANDING SECTIONS 42-2003 AND 44-315, THE DOCUMENTS AND PAPERS MAY BE: 1. USED BY THE DEPARTMENT IN THE COURSE OF AN ACTION TO COLLECT UNCLAIMED PROPERTY OR OTHERWISE ENFORCE THIS CHAPTER. 2. USED IN JOINT EXAMINATIONS CONDUCTED WITH OR PURSUANT TO AN AGREEMENT WITH ANOTHER STATE, THE FEDERAL GOVERNMENT OR ANY OTHER GOVERNMENTAL SUBDIVISION, AGENCY OR INSTRUMENTALITY. 3. PRODUCED PURSUANT TO SUBPOENA OR COURT ORDER. 4. DISCLOSED TO THE ABANDONED PROPERTY OFFICE OF ANOTHER STATE FOR THAT STATE'S USE IN CIRCUMSTANCES THAT ARE EQUIVALENT TO THOSE DESCRIBED IN THIS SUBSECTION, IF THE OTHER STATE IS BOUND TO KEEP THE DOCUMENTS AND PAPERS CONFIDENTIAL. E. IF AN EXAMINATION OF THE RECORDS OF A PERSON RESULTS IN THE DISCLOSURE OF PROPERTY THAT IS REPORTABLE UNDER THIS CHAPTER, THE DEPARTMENT MAY ASSESS THE COST OF THE EXAMINATION AGAINST THE HOLDER AT THE RATE OF ONE HUNDRED DOLLARS EACH DAY FOR EACH EXAMINER, BUT THE ASSESSMENT SHALL NOT EXCEED THE VALUE OF THE PROPERTY FOUND TO BE REPORTABLE. THE DEPARTMENT MAY ASSESS THE COST OF AN EXAMINATION MADE PURSUANT TO SUBSECTION C OF THIS SECTION ONLY AGAINST THE BUSINESS ASSOCIATION OR FINANCIAL ORGANIZATION. F. IF A HOLDER DOES NOT MAINTAIN THE RECORDS REQUIRED IN SECTION 44-323 AND THE RECORDS OF THE HOLDER THAT ARE AVAILABLE FOR THE PERIODS SUBJECT TO THIS CHAPTER ARE INSUFFICIENT TO ALLOW THE PREPARATION OF A REPORT, THE DEPARTMENT MAY REQUIRE THE HOLDER TO REPORT AND PAY TO THE DEPARTMENT THE AMOUNT THAT THE DEPARTMENT REASONABLY BELIEVES, BASED ON THE HOLDER'S AVAILABLE RECORDS OR ANY OTHER REASONABLE METHOD OF ESTIMATION, SHOULD HAVE BEEN BUT WAS NOT REPORTED. THE METHOD OF ESTIMATION SHALL BE AGREED TO BY THE HOLDER OR SHALL BE A STATISTICALLY VALID SAMPLING METHOD. 44-323. Retention of records A. A HOLDER THAT IS REQUIRED TO FILE A REPORT PURSUANT TO SECTION 44-307 SHALL MAINTAIN THE RECORDS THAT CONTAIN THE INFORMATION REQUIRED TO BE INCLUDED IN THE REPORT FOR FIVE YEARS AFTER THE HOLDER FILES THE REPORT, EXCEPT AS PROVIDED IN SUBSECTION B OF THIS SECTION OR UNLESS THE DEPARTMENT ADOPTS A RULE THAT ALLOWS FOR A SHORTER PERIOD OF TIME. B. A BUSINESS ASSOCIATION OR FINANCIAL ORGANIZATION THAT SELLS, ISSUES OR PROVIDES TO OTHERS FOR SALE OR ISSUE IN THIS STATE TRAVELER'S CHECKS, MONEY ORDERS OR OTHER SIMILAR INSTRUMENTS ON WHICH THE BUSINESS ASSOCIATION OR FINANCIAL ORGANIZATION IS DIRECTLY LIABLE, OTHER THAN THIRD PARTY BANK CHECKS, SHALL MAINTAIN A RECORD OF THE INSTRUMENTS WHILE THE INSTRUMENTS REMAIN OUTSTANDING AND THE RECORD SHALL INDICATE THE STATE AND DATE OF ISSUE OF THE INSTRUMENTS. THE ASSOCIATION OR ORGANIZATION SHALL MAINTAIN THE RECORD PRESCRIBED BY THIS SUBSECTION FOR THREE YEARS AFTER THE HOLDER FILES THE REPORT. 44-324. Enforcement THE DEPARTMENT MAY REQUEST THE ATTORNEY GENERAL TO COMMENCE AN ACTION IN THE SUPERIOR COURT TO ENFORCE THIS CHAPTER, AND, IF APPLICABLE, THE DEPARTMENT MAY FILE AN ACTION IN ANOTHER STATE TO ENFORCE THIS CHAPTER. 44-325. Interstate agreements and cooperation; joint and reciprocal actions with other states A. THE DEPARTMENT MAY ENTER INTO AN AGREEMENT WITH ANOTHER STATE TO EXCHANGE INFORMATION RELATING TO ABANDONED PROPERTY OR THE POSSIBLE EXISTENCE OF ABANDONED PROPERTY. THE AGREEMENT MAY ALLOW THE OTHER STATE OR ANOTHER PERSON ACTING ON BEHALF OF A STATE TO EXAMINE RECORDS AS AUTHORIZED IN SECTION 44-322. THE DEPARTMENT BY RULE MAY REQUIRE THE REPORTING OF INFORMATION THAT IS NECESSARY TO COMPLY WITH AN AGREEMENT MADE PURSUANT TO THIS SECTION, AND THE DEPARTMENT MAY PRESCRIBE THE FORM. B. THE DEPARTMENT MAY JOIN WITH ANOTHER STATE TO SEEK ENFORCEMENT OF THIS CHAPTER AGAINST ANY PERSON WHO IS OR MAY BE HOLDING PROPERTY THAT IS REPORTABLE PURSUANT TO THIS CHAPTER. C. AT THE REQUEST OF ANOTHER STATE, THE ATTORNEY GENERAL OF THIS STATE MAY MAINTAIN AN ACTION ON BEHALF OF THE OTHER STATE TO ENFORCE IN THIS STATE THE UNCLAIMED PROPERTY LAWS OF THE OTHER STATE AGAINST A HOLDER OF PROPERTY THAT IS SUBJECT TO ESCHEAT OR A CLAIM OF ABANDONMENT BY THE OTHER STATE, IF THE OTHER STATE AGREES TO PAY ALL COSTS INCURRED BY THE ATTORNEY GENERAL IN MAINTAINING THE ACTION. D. THE DEPARTMENT MAY REQUEST THAT THE ATTORNEY GENERAL OF ANOTHER STATE OR ANOTHER ATTORNEY BEGIN AN ACTION IN THE OTHER STATE ON BEHALF OF THE DEPARTMENT. THE DEPARTMENT SHALL PAY ALL COSTS, INCLUDING ATTORNEY FEES, IN MAINTAINING AN ACTION PURSUANT TO THIS SUBSECTION. THE DEPARTMENT MAY PAY THE COSTS AND ATTORNEY FEES FROM MONIES RECEIVED PURSUANT TO THIS CHAPTER. THE DEPARTMENT MAY AGREE TO PAY COSTS AND ATTORNEY FEES THAT ARE BASED IN WHOLE OR IN PART ON A PERCENTAGE OF THE VALUE OF ANY PROPERTY THAT THE DEPARTMENT RECOVERS IN THE ACTION. THE DEPARTMENT SHALL NOT DEDUCT ANY COSTS OR ATTORNEY FEES PAID PURSUANT TO THIS SECTION FROM THE AMOUNT THAT IS SUBJECT TO THE CLAIM BY THE OWNER PURSUANT TO THIS CHAPTER. 44-326. Interest; penalties A. THE DEPARTMENT MAY REQUIRE ANY PERSON WHO FAILS TO PAY OR DELIVER PROPERTY WITHIN THE TIME PRESCRIBED IN THIS CHAPTER TO PAY TO THE DEPARTMENT INTEREST AT THE RATE OF ONE AND ONE-HALF PER CENT PER MONTH OR FRACTION OF A MONTH ON THE PROPERTY OR VALUE OF THE PROPERTY FROM THE DATE THE PROPERTY SHOULD HAVE BEEN PAID OR DELIVERED. B. ANY PERSON WHO WILFULLY FAILS TO: 1. RENDER ANY REPORT OR PERFORM ANY OTHER DUTY REQUIRED UNDER THIS CHAPTER SHALL PAY A CIVIL PENALTY OF ONE HUNDRED DOLLARS FOR EACH DAY THE REPORT IS WITHHELD OR THE DUTY IS NOT PERFORMED UP TO A MAXIMUM OF FIVE THOUSAND DOLLARS. 2. PAY OR DELIVER PROPERTY TO THE DEPARTMENT AS REQUIRED UNDER THIS CHAPTER SHALL PAY A CIVIL PENALTY OF TWENTY-FIVE PER CENT OF THE VALUE OF THE PROPERTY THAT SHOULD HAVE BEEN PAID OR DELIVERED. 44-327. Agreement to locate property A. THE FOLLOWING ARE VOID AND UNENFORCEABLE: 1. AN AGREEMENT ENTERED INTO BY AN OWNER WITH ANOTHER PERSON IF THE PRIMARY PURPOSE OF THAT AGREEMENT IS TO LOCATE, DELIVER, RECOVER OR ASSIST IN THE RECOVERY OF PROPERTY THAT IS PRESUMED ABANDONED, IF THE AGREEMENT WAS ENTERED INTO DURING THE PERIOD COMMENCING ON THE DATE THE PROPERTY WAS PRESUMED ABANDONED AND EXTENDING TO A TIME THAT IS TWENTY-FOUR MONTHS AFTER THE DATE THAT THE PROPERTY IS PAID OR DELIVERED TO THE DEPARTMENT. THIS PARAGRAPH DOES NOT APPLY TO AN OWNER'S AGREEMENT WITH AN ATTORNEY TO FILE A CLAIM RELATING TO IDENTIFIED PROPERTY OR TO CONTEST THE DEPARTMENT'S DENIAL OF A CLAIM. 2. A PROVISION IN AN AGREEMENT THAT REQUIRES AN OWNER TO PAY COMPENSATION THAT INCLUDES A PORTION OF MINERAL PROCEEDS THAT ARE NOT PRESUMED ABANDONED OR THE UNDERLYING MINERALS, IF THE PRIMARY PURPOSE OF THE AGREEMENT IS TO LOCATE, DELIVER, RECOVER OR ASSIST IN THE RECOVERY OF MINERAL PROCEEDS THAT ARE PRESUMED ABANDONED. B. IF AN OWNER ENTERS INTO AN AGREEMENT THAT IS NOT VOID PURSUANT TO THIS SECTION AND THE PRIMARY PURPOSE OF THAT AGREEMENT IS TO LOCATE, DELIVER, RECOVER OR ASSIST IN THE RECOVERY OF PROPERTY REPORTED TO THE DEPARTMENT, THE AGREEMENT IS: 1. ENFORCEABLE IF THE AGREEMENT IS IN WRITING, CLEARLY STATES THE NATURE OF THE PROPERTY AND THE SERVICES TO BE PERFORMED, IS SIGNED BY THE APPARENT OWNER AND STATES THE VALUE OF THE PROPERTY BEFORE AND AFTER THE FEE OR OTHER COMPENSATION HAS BEEN DEDUCTED. THE FEE OR PAYMENT AGREED ON SHALL NOT BE MORE THAN THIRTY PER CENT OF THE VALUE OF THE RECOVERABLE PROPERTY REPORTED TO THE DEPARTMENT. 2. UNENFORCEABLE EXCEPT BY THE OWNER IF THE AGREEMENT PROVIDES FOR COMPENSATION THAT IS MORE THAN THIRTY PER CENT OF THE VALUE OF THE RECOVERABLE PROPERTY REPORTED TO THE DEPARTMENT. C. AN OWNER WHO HAS AGREED TO PAY COMPENSATION THAT IS MORE THAN THIRTY PER CENT OF THE VALUE OF THE RECOVERABLE PROPERTY REPORTED TO THE DEPARTMENT, OR THE DEPARTMENT ON BEHALF OF THE OWNER, MAY MAINTAIN AN ACTION TO REDUCE THE COMPENSATION. THE COURT MAY AWARD REASONABLE ATTORNEY FEES TO AN OWNER WHO PREVAILS IN THE ACTION. THIS SECTION DOES NOT PROHIBIT AN OWNER FROM ASSERTING THAT AN AGREEMENT IS INVALID ON GROUNDS OTHER THAN COMPENSATION. 44-328. Foreign transactions THIS CHAPTER DOES NOT APPLY TO PROPERTY THAT IS HELD, DUE AND OWING IN A FOREIGN COUNTRY AND THAT ARISES OUT OF A FOREIGN TRANSACTION. 44-329. Transitional provisions A. AN INITIAL REPORT FILED PURSUANT TO THIS CHAPTER FOR PROPERTY THAT WAS NOT REQUIRED TO BE REPORTED BEFORE THE EFFECTIVE DATE OF THIS CHAPTER BUT THAT IS SUBJECT TO THIS CHAPTER SHALL INCLUDE ALL ITEMS OF PROPERTY THAT WOULD HAVE BEEN PRESUMED ABANDONED WITHIN TEN YEARS BEFORE THE EFFECTIVE DATE OF THIS CHAPTER AS IF THIS CHAPTER HAD BEEN IN EFFECT DURING THAT PERIOD. B. THIS CHAPTER DOES NOT RELIEVE A HOLDER OF A DUTY THAT AROSE BEFORE THE EFFECTIVE DATE OF THIS CHAPTER TO REPORT, PAY OR DELIVER PROPERTY. EXCEPT AS PROVIDED IN SECTION 44-321, SUBSECTION B, A HOLDER WHO DID NOT COMPLY WITH THE LAW IN EFFECT BEFORE THE EFFECTIVE DATE OF THIS CHAPTER IS SUBJECT TO THE APPLICABLE PROVISIONS FOR ENFORCEMENT AND PENALTIES THAT WERE IN EFFECT UNDER THE PRIOR LAW. 44-330. Rules THE DEPARTMENT MAY ADOPT RULES PURSUANT TO TITLE 41, CHAPTER 6 TO CARRY OUT THIS CHAPTER. 44-331. Uniformity of application and construction THIS CHAPTER SHALL BE APPLIED AND CONSTRUED TO EFFECTUATE ITS GENERAL PURPOSE TO MAKE UNIFORM THE LAW WITH RESPECT TO THE SUBJECT OF THIS CHAPTER AMONG STATES THAT ENACT THE UNIFORM UNCLAIMED PROPERTY ACT. 44-332. Arizona unclaimed property assistance office; unclaimed property problem resolution officer; duties; program termination A. THE ARIZONA UNCLAIMED PROPERTY ASSISTANCE OFFICE IS ESTABLISHED AS AN OFFICE IN THE DEPARTMENT. THE DIRECTOR SHALL SELECT THE EMPLOYEES OF THE OFFICE INCLUDING A MANAGER WHO IS THE UNCLAIMED PROPERTY PROBLEM RESOLUTION OFFICER. THE OFFICE REPORTS DIRECTLY TO THE DIRECTOR'S OFFICE. THE EMPLOYEES OF THE OFFICE MAY INCLUDE EMPLOYEES OF THE DEPARTMENT AND MAY ALSO INCLUDE RESIDENTS OF THIS STATE WITH KNOWLEDGE OF UNCLAIMED PROPERTY. B. THE OFFICE SHALL ASSIST HOLDERS OF UNCLAIMED PROPERTY IN: 1. OBTAINING EASILY UNDERSTANDABLE UNCLAIMED PROPERTY INFORMATION AND INFORMATION ON AUDITS, CORRECTIONS AND APPEALS PROCEDURES OF THE DEPARTMENT. 2. ANSWERING QUESTIONS REGARDING PREPARING AND FILING REPORTS WITH THE DEPARTMENT. 3. LOCATING DOCUMENTS OR PAYMENTS FILED WITH OR SUBMITTED TO THE DEPARTMENT BY HOLDERS. C. THE OFFICE SHALL ALSO: 1. RECEIVE AND EVALUATE COMPLAINTS OF IMPROPER, ABUSIVE OR INEFFICIENT SERVICE BY EMPLOYEES OF THE DEPARTMENT AND RECOMMEND TO THE DIRECTOR APPROPRIATE ACTION TO CORRECT THAT SERVICE. 2. IDENTIFY POLICIES AND PRACTICES OF THE DEPARTMENT THAT MAY BE BARRIERS TO THE EQUITABLE TREATMENT OF HOLDERS AND RECOMMEND ALTERNATIVES TO THE DIRECTOR. 3. PROVIDE EXPEDITIOUS SERVICE TO HOLDERS WHOSE PROBLEMS ARE NOT RESOLVED THROUGH NORMAL CHANNELS. 4. NEGOTIATE WITH DEPARTMENT PERSONNEL TO RESOLVE THE MOST COMPLEX AND SENSITIVE HOLDER PROBLEMS. 5. TAKE ACTION TO STOP OR PROHIBIT THE DEPARTMENT FROM TAKING AN ACTION AGAINST A HOLDER. 6. PARTICIPATE AND REPRESENT HOLDERS' INTERESTS AND CONCERNS IN PLANNING MEETINGS, REVIEWING INSTRUCTIONS AND FORMULATING DEPARTMENT POLICIES AND PROCEDURES. 7. COMPILE DATA EACH YEAR ON THE NUMBER AND TYPE OF HOLDER COMPLAINTS AND EVALUATE THE ACTIONS TAKEN TO RESOLVE COMPLAINTS. 8. SURVEY HOLDERS EACH YEAR TO OBTAIN THEIR EVALUATION OF THE QUALITY OF SERVICE PROVIDED BY THE DEPARTMENT. 9. PERFORM OTHER FUNCTIONS THAT RELATE TO HOLDER ASSISTANCE AS PRESCRIBED BY THE DIRECTOR. D. ACTIONS TAKEN BY THE OFFICE MAY BE REVIEWED ONLY BY THE DIRECTOR ON REQUEST OF THE DEPARTMENT OR A HOLDER. THE DIRECTOR MAY MODIFY ACTION TAKEN BY THE OFFICE. E. THE PROGRAM ESTABLISHED BY THIS SECTION ENDS ON JULY 1, 2010 PURSUANT TO SECTION 41-3102. 44-333. Erroneous advice or misleading statements by the department; abatement of penalties and interest; definitions A. THE DEPARTMENT SHALL NOT REQUIRE INTEREST OR A PENALTY ON UNCLAIMED PROPERTY DEMANDED AS A DEFICIENCY IF EITHER: 1. THE DEFICIENCY IS DIRECTLY ATTRIBUTABLE TO ERRONEOUS WRITTEN ADVICE FURNISHED TO THE HOLDER BY AN EMPLOYEE OF THE DEPARTMENT ACTING IN AN OFFICIAL CAPACITY IN RESPONSE TO A SPECIFIC REQUEST FROM THE HOLDER AND NOT FROM THE HOLDER'S FAILURE TO PROVIDE ADEQUATE OR ACCURATE INFORMATION. 2. ALL OF THE FOLLOWING ARE TRUE: (a) AN UNCLAIMED PROPERTY REPORT OR COMPARABLE DOCUMENT OR UNCLAIMED PROPERTY RULING PREPARED BY THE DEPARTMENT CONTAINS A STATEMENT THAT, IF FOLLOWED BY A HOLDER, WOULD CAUSE THE HOLDER TO MISAPPLY THIS TITLE. (b) THE HOLDER REASONABLY RELIES ON THE STATEMENT. (c) THE HOLDER'S UNDERPAYMENT DIRECTLY RESULTS FROM THIS RELIANCE. B. EACH EMPLOYEE OF THE DEPARTMENT, AT THE TIME ANY ORAL ADVICE IS GIVEN TO ANY PERSON, SHALL INFORM THE PERSON THAT THE DEPARTMENT IS NOT BOUND BY THAT ORAL ADVICE. C. FOR PURPOSES OF THIS SECTION: 1. "UNCLAIMED PROPERTY REPORT" INCLUDES THE INSTRUCTIONS THAT THE DEPARTMENT PREPARES FOR USE WITH THE UNCLAIMED PROPERTY REPORT OR COMPARABLE DOCUMENT. 2. "UNCLAIMED PROPERTY RULING" MEANS A STATEMENT ISSUED BY THE DIRECTOR AND DENOMINATED AS AN UNCLAIMED PROPERTY RULING OR AN UNCLAIMED PROPERTY PROCEDURE. 44-334. Basis for evaluating employee performance A. THE DEPARTMENT SHALL ESTABLISH PROCEDURES TO MONITOR THE PERFORMANCE OF DEPARTMENT EMPLOYEES THAT INCLUDE, IF APPLICABLE, USING EVALUATIONS OBTAINED FROM HOLDERS. B. THE DEPARTMENT SHALL NOT EVALUATE AN EMPLOYEE ON THE BASIS OF UNCLAIMED PROPERTY DEMANDED OR COLLECTED BY THAT EMPLOYEE. 44-335. No additional audits or proposed increased demands; exceptions A. WHEN THE DEPARTMENT COMPLETES AN AUDIT AND A FINAL EXAMINATION REPORT HAS BEEN COMPLETELY DETERMINED UNDER THIS TITLE, THE HOLDER'S LIABILITY FOR THE PARTICULAR UNCLAIMED PROPERTY FOR THE PERIOD SUBJECTED TO THE AUDIT IS FIXED AND DETERMINED, AND NO ADDITIONAL AUDIT FOR THE PARTICULAR TYPE OF PROPERTY SPECIFIED IN THE FINAL EXAM REPORT MAY BE CONDUCTED EXCEPT UNDER THE FOLLOWING CIRCUMSTANCES: 1. IF A HOLDER FILES A CLAIM FOR REFUND, ANY DEPARTMENTAL AUDIT OF THE CLAIM IS LIMITED TO THE ISSUES PRESENTED ON THE CLAIM FOR REFUND. 2. IF A HOLDER FAILED TO DISCLOSE MATERIAL INFORMATION DURING THE AUDIT, OR HAS FALSIFIED BOOKS OR RECORDS OR OTHERWISE ENGAGED IN AN ACTION THAT PREVENTED THE DEPARTMENT FROM CONDUCTING AN ACCURATE AUDIT, THE APPLICABILITY OF THIS SUBSECTION MAY BE PART OF A SUBSEQUENT PROTEST AND MAY BE CONTESTED BY THE HOLDER. B. IF THE DEPARTMENT ISSUES A FINAL EXAMINATION REPORT, THE DEPARTMENT MAY NOT INCREASE THE AMOUNT OF THE PROPERTY DEMANDED IN THE FINAL EXAMINATION REPORT EXCEPT IN ONE OR MORE OF THE FOLLOWING CIRCUMSTANCES: 1. THE HOLDER HAS MADE A MATERIAL MISREPRESENTATION OF FACTS. 2. THE HOLDER HAS FAILED TO DISCLOSE A MATERIAL FACT TO THE AUDITOR. 3. THE DEPARTMENT HAS REQUESTED INFORMATION AND THE HOLDER FAILS TO PROVIDE THAT INFORMATION TO THE DEPARTMENT. 4. AFTER ISSUING THE FINAL EXAMINATION REPORT BUT BEFORE THE DEMAND BECOMES FINAL, THE COURT OF APPEALS OR THE SUPREME COURT ISSUES A DECISION, THE APPLICATION OF WHICH CAUSES THE UNCLAIMED PROPERTY INITIALLY PROPOSED TO INCREASE. 44-336. Private holder rulings; request; revocation or modification; definition A. THE DEPARTMENT MAY ISSUE PRIVATE HOLDER RULINGS TO UNCLAIMED PROPERTY HOLDERS AND POTENTIAL UNCLAIMED PROPERTY HOLDERS ON REQUEST. EACH REQUEST SHALL BE IN WRITING AND SHALL: 1. STATE THE NAME, ADDRESS AND, IF APPLICABLE, IDENTIFYING NUMBER OF THE HOLDER OR POTENTIAL HOLDER WHO REQUESTS THE RULING. 2. DESCRIBE ALL FACTS THAT ARE RELEVANT TO THE REQUESTED RULING. 3. STATE WHETHER, TO THE BEST KNOWLEDGE OF THE HOLDER OR POTENTIAL HOLDER, THE ISSUE OR RELATED ISSUES ARE BEING CONSIDERED BY THE DEPARTMENT IN CONNECTION WITH AN ACTIVE AUDIT, PROTEST OR APPEAL THAT INVOLVES THE HOLDER OR POTENTIAL HOLDER AND WHETHER THE SAME REQUEST HAS BEEN OR IS BEING SUBMITTED TO ANOTHER GOVERNMENTAL AUTHORITY FOR A RULING. 4. BE SIGNED BY THE HOLDER OR POTENTIAL HOLDER WHO MAKES THE REQUEST OR BY AN AUTHORIZED REPRESENTATIVE OF THE HOLDER OR POTENTIAL HOLDER. B. A PRIVATE HOLDER RULING MAY BE REVOKED OR MODIFIED BY EITHER: 1. A CHANGE OR CLARIFICATION IN THE LAW THAT WAS APPLICABLE AT THE TIME THE RULING WAS ISSUED, INCLUDING CHANGES OR CLARIFICATIONS CAUSED BY LEGISLATION, ADOPTED ADMINISTRATIVE RULES AND COURT DECISIONS. 2. ACTUAL WRITTEN NOTICE BY THE DEPARTMENT TO THE LAST KNOWN ADDRESS OF THE HOLDER OR POTENTIAL HOLDER OF THE REVOCATION OR MODIFICATION OF THE PRIVATE HOLDER RULING. C. WITH RESPECT TO THE HOLDER OR PROSPECTIVE HOLDER TO WHOM THE PRIVATE HOLDER RULING WAS ISSUED, THE REVOCATION OR MODIFICATION OF A PRIVATE HOLDER RULING SHALL NOT BE APPLIED RETROACTIVELY TO UNCLAIMED PROPERTY PERIODS OR YEARS BEFORE THE EFFECTIVE DATE OF THE REVOCATION OR MODIFICATION, AND THE DEPARTMENT SHALL NOT DEMAND ANY PENALTY OR INTEREST ATTRIBUTABLE TO ERRONEOUS ADVICE THAT IT FURNISHED TO THE HOLDER OR POTENTIAL HOLDER IN THE PRIVATE HOLDER RULING IF: 1. THE HOLDER REASONABLY RELIED ON THE PRIVATE HOLDER RULING. 2. THE PENALTY OR INTEREST DID NOT RESULT EITHER FROM A FAILURE BY THE HOLDER TO PROVIDE ADEQUATE OR ACCURATE INFORMATION OR FROM A CHANGE IN THE INFORMATION. D. A PRIVATE HOLDER RULING SHALL NOT BE RELIED ON, CITED OR INTRODUCED INTO EVIDENCE IN ANY PROCEEDING BY A HOLDER OTHER THAN THE HOLDER WHO HAS RECEIVED THE PRIVATE HOLDER RULING. E. A HOLDER MAY APPLY FOR AN ADMINISTRATIVE HEARING TO DETERMINE THE PROPRIETY OF A RETROACTIVE APPLICATION OF A REVOKED OR MODIFIED PRIVATE HOLDER RULING BY FILING A WRITTEN PETITION WITH THE DEPARTMENT PURSUANT TO TITLE 41, CHAPTER 6, ARTICLE 10 WITHIN FORTY-FIVE DAYS AFTER RECEIVING WRITTEN NOTICE OF THE DEPARTMENT'S INTENT TO RETROACTIVELY APPLY A REVOKED OR MODIFIED PRIVATE HOLDER RULING. F. A PRIVATE HOLDER RULING CONSTITUTES THE DEPARTMENT'S INTERPRETATION OF THE LAW OR RULES ONLY AS THEY APPLY TO THE HOLDER MAKING, AND THE PARTICULAR FACTS CONTAINED IN, THE REQUEST. G. A PRIVATE HOLDER RULING MAY BE ISSUED ONLY IF NO UNCLAIMED PROPERTY LIABILITY HAS ACCRUED WITH RESPECT TO THE TRANSACTIONS, EVENTS OR FACTS CONTAINED IN THE REQUEST. THE DEPARTMENT MAY ISSUE A PRIVATE HOLDER RULING ADDRESSING A HOLDER'S ONGOING BUSINESS ACTIVITIES, EXCEPT THAT THE RULING APPLIES ONLY TO TRANSACTIONS THAT OCCUR OR UNCLAIMED PROPERTY LIABILITIES THAT ACCRUE FROM AND AFTER THE DATE THE HOLDER RECEIVES THE RULING. H. THE DEPARTMENT SHALL ATTEMPT TO ISSUE PRIVATE HOLDER RULINGS WITHIN FORTY-FIVE DAYS AFTER RECEIVING THE WRITTEN REQUEST AND ON RECEIVING THE FACTS THAT ARE RELEVANT TO THE RULING. IF THE RULING IS EXPECTED TO BE DELAYED, THE DEPARTMENT SHALL NOTIFY THE REQUESTOR OF THE DELAY AND THE PROPOSED DATE OF ISSUANCE. I. WITHIN THIRTY DAYS AFTER BEING ISSUED, THE DEPARTMENT SHALL MAINTAIN THE PRIVATE HOLDER RULING AS A PUBLIC RECORD AND MAKE IT AVAILABLE AT A REASONABLE COST FOR PUBLIC INSPECTION AND COPYING. THE TEXT OF PRIVATE HOLDER RULINGS IS OPEN TO PUBLIC INSPECTION SUBJECT TO THE CONFIDENTIALITY REQUIREMENTS PRESCRIBED BY TITLE 42, CHAPTER 2, ARTICLE 1. J. FOR PURPOSES OF THIS SECTION, "PRIVATE HOLDER RULING" MEANS A WRITTEN DETERMINATION BY THE DEPARTMENT ISSUED ON OR AFTER JANUARY 1, 2001 THAT INTERPRETS AND APPLIES ONE OR MORE STATUTES CONTAINED IN THIS TITLE AND ANY APPLICABLE ADMINISTRATIVE RULES THAT THE DEPARTMENT HAS ADOPTED TO THE SPECIFIC PROSPECTIVE FACTS DESCRIBED IN THE REQUEST FOR A PRIVATE HOLDER RULING. 44-337. Abatement of interest for errors or delays caused by the department A. THE DIRECTOR MAY ABATE ALL OR PART OF INTEREST ACCRUED ON: 1. AN UNCLAIMED PROPERTY DEFICIENCY DUE TO ANY UNREASONABLE ERROR OR DELAY BY AN OFFICER OR EMPLOYEE OF THE DEPARTMENT ACTING IN THE EMPLOYEE'S OFFICIAL CAPACITY. 2. ANY PAYMENT OF UNCLAIMED PROPERTY TO THE EXTENT THAT ANY ERROR OR DELAY IN THE PAYMENT IS ATTRIBUTABLE TO AN OFFICER OR EMPLOYEE OF THE DEPARTMENT BEING UNREASONABLY ERRONEOUS OR DILATORY. B. THE DIRECTOR MAY CONSIDER AN ERROR OR DELAY ONLY IF NO SIGNIFICANT ASPECT OF THE ERROR OR DELAY CAN BE ATTRIBUTED TO THE HOLDER AND AFTER THE DEPARTMENT HAS CONTACTED THE HOLDER IN WRITING WITH RESPECT TO THE DEFICIENCY OR PAYMENT. C. THE DIRECTOR'S DECISION IS THE DEPARTMENT'S FINAL DECISION OR ORDER AND, EXCEPT AS PROVIDED IN SECTION 41-1092.08, SUBSECTION H, IS SUBJECT TO JUDICIAL REVIEW PURSUANT TO TITLE 12, CHAPTER 7, ARTICLE 6. D. THE DEPARTMENT SHALL PROVIDE A WRITTEN DOCUMENT TO EACH NEW TRANSACTION PRIVILEGE TAX LICENSEE THAT PROVIDES INFORMATION REGARDING THE REPORTING AND REMITTANCE OF UNCLAIMED PROPERTY. 44-338. Appeal of determination of amounts due A. A DETERMINATION BY THE DEPARTMENT UNDER SECTION 44-322 THAT ANY UNCLAIMED PROPERTY IS REPORTABLE, OR A DEMAND FOR INTEREST OR PENALTIES, CONSTITUTES AN APPEALABLE AGENCY ACTION PURSUANT TO SECTION 41-1092, PARAGRAPH 3. THE HOLDER MAY APPEAL THE DEPARTMENT'S DETERMINATION PURSUANT TO TITLE 41, CHAPTER 6, ARTICLE 10. B. EXCEPT AS PROVIDED IN SECTION 41-1092.08, SUBSECTION H, A FINAL DECISION OF THE DEPARTMENT IS SUBJECT TO JUDICIAL REVIEW PURSUANT TO TITLE 12, CHAPTER 7, ARTICLE 6. C. IF THE HOLDER DOES NOT FILE A NOTICE OF APPEAL AS PROVIDED IN SUBSECTIONS A AND B OF THIS SECTION, THE AMOUNT DETERMINED TO BE DUE BECOMES FINAL AT THE EXPIRATION OF THE PERIOD PROVIDED FOR APPEAL AND THE HOLDER IS DEEMED TO HAVE WAIVED AND ABANDONED THE RIGHT TO QUESTION THE AMOUNT DETERMINED TO BE DUE. Sec. 12. Section 46-731, Arizona Revised Statutes, is amended to read: 46-731. Utility assistance fund; purposes; administration; nonreversion; reimbursement for administrative costs; definitions A. A utility assistance fund is established B. A deposit, including any interest on the deposit, that is made by a subscriber
with a utility to secure payment or any amount that is paid in advance for utility
services to be furnished, less any lawful deductions or any amount held by a utility that
the utility has been ordered to refund by a court or administrative agency, and that
remains unclaimed by the subscriber for more than two years after the termination of the
services for which the deposit or advance payment was made, or for more than two years
after the refund becomes payable and distribution occurs pursuant to the final order of
the court or administrative agency that has jurisdiction to establish the terms and
conditions of the refund, is presumed abandoned and shall be transmitted annually to the
department of revenue for deposit in the utility assistance fund. Any utility that
delivers these refund payments to the department of revenue in good faith is relieved of
all liability to the extent of any refund payment delivered for any claim then existing
or that thereafter may arise or be made in respect to the property. This subsection does
not apply to any refund subject to section C. D. The agencies selected by the director shall disburse monies for payment of utility deposits by checks payable to the utility. These payments may be made in a batch process. The agencies selected by the director shall disburse monies for the payment of owner utility repairs and replacements by checks payable to the repairer or replacement entity on behalf of the client on satisfactory completion of the work. The client shall indicate in writing that the repairs and replacements have been completed before payment is made. E. The department of revenue shall annually report to the department of economic security the amounts the utility assistance fund receives from each utility that requires a fee to be deposited in order to receive its services. The department of economic security shall report these amounts to the agencies. F. Refunds by the utilities for deposits made by the utility assistance fund shall be transmitted to the department of revenue for deposit in the fund. These refunds are subject to the established tariffs, rules and procedures of the utilities. G. The utilities, the department and the designated community action or other agencies currently providing energy assistance shall inform the public of the utility assistance fund. H. Except as provided in subsection A of this section, monies in the utility assistance fund do not revert to the state general fund. I. An amount of not more than two per cent of the utility assistance fund monies may be used by the department and an amount of not more than eight per cent of the fund monies may be used by the agencies to reimburse them for their administrative costs in providing services under this article. J. For the purposes of this section: 1. "Crisis situations" includes a substantial loss or reduction of income, unexpected emergency expenses, a health related emergency or no income in the household. The director may adopt rules that set forth other crisis situations. 2. "Utility" means a person that, for public use, transmits, sells, delivers or
furnishes electricity, water, gas, sewer or Sec. 13. Short title Title 44, chapter 3, Arizona Revised Statutes, as added by this act, may be cited as the "Revised Arizona Unclaimed Property Act". Sec. 14. Severability If a provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable. Sec. 15. Uncodified session laws All uncodified session laws that have been enacted by the legislature, that refer to sections in title 44, chapter 3, Arizona Revised Statutes, as repealed by this act, and that are in effect on the effective date of this act remain in full force and effect until they expire pursuant to their terms or are amended or repealed by the legislature. Sec. 16. Effective date This act is effective from and after December 31, 2000.
APPROVED BY THE GOVERNOR APRIL 07, 2000. FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 07, 2000. |