SB 647

Current law provides certain penalties for persons who hold unclaimed property and fail to timely file a report with the Department of Revenue regarding that property or fail to timely deliver that property to DOR. For example, any person who fails to timely deliver abandoned property to DOR must pay a penalty equal to 15 percent of the value of the property.

This bill provides civil and criminal penalties for filing a claim with DOR for the property of another without the other’s consent and with the intent to deprive the owner of the property. A person who files such a claim is subject to a penalty equal to the total value of the property and is also guilty of a Class I felony.

In addition, under the bill, a claim submitted to DOR by a locator service under an agreement that does not comply with current law is subject to a penalty equal to the value of the unclaimed property plus $1,000 for property valued at no more than $15,000 or plus $2,500 for property valued at more than $15,000. The bill requires DOR to post on its website the name and address of each locator service that is assessed the penalty under the bill, including the amount of the penalty, no later than 90 days after the locator’s right to appeal the assessment has expired. Also, the information must remain on the website for at least 12 months following the date on which the information is initially posted.

Current law allows DOR to waive, in whole or in part, civil penalties applicable to persons who hold unclaimed property and who fail to comply with administrative requirements under current law. The bill allows DOR to waive, in whole or in part, the civil penalties provided under the bill. Finally, the attorney general is authorized, upon request from DOR, to represent the state or to assist the district attorney in the prosecution of any case arising under the bill.

Because this bill creates a new crime or revises a penalty for an existing crime, the Joint Review Committee on Criminal Penalties may be requested to prepare a report.