HOUSE BILL No. 4918 June 6, 2001, Introduced by Reps. Murphy, Phillips, Hale, Whitmer, Thomas, Minore, Basham, Rison, Sheltrown, Neumann, Adamini, Lipsey, Frank, Pestka, Williams, Rivet, Daniels, Schauer, Zelenko, Plakas, Bogardus, Hart, DeWeese, Switalski, Waters, McConico, Spade, Bovin, Stallworth, Gieleghem, Jansen, Clark, Jacobs, Anderson, Birkholz, Dennis, Hardman, Ehardt and Lemmons and referred to the Committee on Family and Children Services. A bill to amend 1995 PA 29, entitled "Uniform unclaimed property act," by amending the title and sections 2, 14, 18, 19, 20, 21, 24, 25, 27, 31, and 33 (MCL 567.222, 567.234, 567.238, 567.239, 567.240, 567.241, 567.244, 567.245, 567.247, 567.251, and 567.253), sec- tions 18, 19, 20, 25, and 31 as amended by 1997 PA 195, and by adding section 2a; and to repeal acts and parts of acts. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 TITLE 2 An act concerning unclaimed property; to provide for the 3 reporting and disposition of unclaimed property; to make uniform 4 the law concerning unclaimed property, OTHER THAN THE DISPOSITION 5 OF UNCLAIMED CHILD SUPPORT; to prescribe the powers and duties of 6 certain state agencies and officials; to prescribe penalties and 7 provide remedies; and to repeal acts and parts of acts. 03938'01 GWH 2 1 Sec. 2. As used in this act, unless the context otherwise 2 requires: 3 (a) "Administrator" means the state treasurer. 4 (b) "Apparent owner" means the person whose name appears on 5 the records of the holder as the person entitled to property 6 held, issued, or owing by the holder. 7 (c) "Attorney general" means the department of attorney 8 general. 9 (d) "Banking organization" means a bank, trust company, sav- 10 ings bank, industrial bank, land bank, safe deposit company, OR 11 private banker,oranyANOTHER organization defined by law 12 as a bank or banking organization. 13 (e) "Business association" means a nonpublic corporation, 14 joint stock company, investment company, business trust, partner- 15 ship, or association for business purposes of 2 or more individu- 16 als, whether or not for profit, including a banking organization, 17 financial organization, insurance company, or utility. 18 (F) "CHILDREN'S TRUSTEE" MEANS THE POSITION ESTABLISHED IN 19 SECTION 2A WITH THE RESPONSIBILITY FOR UNDISBURSED CHILD SUPPORT 20 COLLECTIONS AS PROVIDED IN THIS ACT. 21 (G)(f)"Domicile" means the state of incorporation of a 22 corporation and the state of the principal place of business of 23 an unincorporated person. 24 (H)(g)"Financial organization" means a savings and loan 25 association, cooperative bank, building and loan association, 26 savings bank, or credit union. 03938'01 3 1 (I) "FRIEND OF THE COURT" MEANS AN OFFICE OF THE FRIEND OF 2 THE COURT CREATED UNDER SECTION 3 OF THE FRIEND OF THE COURT ACT, 3 1982 PA 294, MCL 552.503. 4 (J)(h)"Holder" means a person, wherever organized or 5 domiciled, who is 1 or more of the following: 6 (i) In possession of property belonging to another. 7 (ii) A trustee. 8 (iii) Indebted to another on an obligation. 9 (K)(i)"Insurance company" means an individual, associa- 10 tion, corporation, OR fraternal or mutual benefit organization, 11 orany otherANOTHER legal entity, whether or not for profit, 12 that is engaged or attempting to engage in the business of making 13 insurance or surety contracts. 14 (l)(j)"Intangible property" includes all of the 15 following: 16 (i) Money, checks, drafts, deposits, interest, dividends, 17 and income. 18 (ii) Credit balances, customer overpayments, gift certifi- 19 cates, security deposits, refunds, credit memos, unpaid wages, 20 unused airline tickets, and unidentified remittances. 21 (iii) Stocks and other intangible ownership interests in 22 business associations. 23 (iv) Money deposited to redeem stocks, bonds, coupons, and 24 other securities, or to make distributions. 25 (v) Amounts due and payable under the terms of insurance 26 policies. 03938'01 4 1 (vi) Amounts distributable from a trust or custodial fund 2 established under a plan to provide health, welfare, pension, 3 vacation, severance, retirement, death, stock purchase, profit 4 sharing, employee savings, supplemental unemployment insurance, 5 or similar benefits. 6 (vii) MONEY PAID AS CHILD SUPPORT TO THE FRIEND OF THE COURT 7 OR THE STATE DISBURSEMENT UNIT. 8 (M)(k)"Last known address" means a description of the 9 location of the apparent owner sufficient for the purpose of the 10 delivery of mail. 11 (N)(l)"Owner" means a depositor, in the case of a depos- 12 it; a beneficiary, in case of a trust other than a deposit in 13 trust; a creditor, claimant, or payee, in the case of other 14 intangible property; or a person having a legal or equitable 15 interest in property subject to this act. Owner includes the 16 legal representative of the person defined as an owner in this 17 subdivision. 18 (O)(m)"Person" means an individual, business associa- 19 tion, state or other government, governmental subdivision or 20 agency, public corporation, public authority, estate, OR trust, 2 21 or more persons having a joint or common interest, orany other22 ANOTHER legal or commercial entity. 23 (P)(n)"Property" means tangible or intangible personal 24 property owned by a person. 25 (Q)(o)"State" meansanyA state, district, common- 26 wealth, territory, insular possession, oranyother area 27 subject to the legislative authority of the United States. 03938'01 5 1 (R) "STATE DISBURSEMENT UNIT" OR "SDU" MEANS THE ENTITY 2 ESTABLISHED IN SECTION 6 OF THE OFFICE OF CHILD SUPPORT ACT, 1971 3 PA 174, MCL 400.236. 4 (S) "UNDISBURSED CHILD SUPPORT" MEANS MONEY PAID AS CHILD 5 SUPPORT TO A FRIEND OF THE COURT OR THE SDU THAT IS REPORTABLE 6 AND PAYABLE TO THE CHILDREN'S TRUSTEE UNDER THIS ACT. 7 (T) "UNDISBURSED CHILD SUPPORT FUND" MEANS THE FUND ESTAB- 8 LISHED IN SECTION 24. 9 (U)(p)"Utility" means a person who owns or operates for 10 public use any plant, equipment, property, franchise, or license 11 for the transmission of communications or the production, stor- 12 age, transmission, sale, delivery, or furnishing of electricity, 13 water, steam, or gas. 14 SEC. 2A. (1) THE CHILDREN'S TRUSTEE IS ESTABLISHED WITHIN 15 THE DEPARTMENT OF TREASURY IN THE AGENCY THAT IS RESPONSIBLE FOR 16 UNCLAIMED PROPERTY THAT IS PAID OR DELIVERED TO THE ADMINISTRATOR 17 UNDER THIS ACT. THE CHILDREN'S TRUSTEE HAS CONTROL OVER AND IS 18 RESPONSIBLE FOR THE PROPER DISTRIBUTION OF UNDISBURSED CHILD 19 SUPPORT. IF BOTH THE ADMINISTRATOR AND THE CHILDREN'S TRUSTEE 20 HAVE A POWER OR DUTY UNDER THIS ACT, THE CHILDREN'S TRUSTEE HAS 21 THE POWER OR DUTY TO THE EXCLUSION OF THE ADMINISTRATOR, BUT ONLY 22 AS TO UNDISBURSED CHILD SUPPORT. 23 (2) ANNUALLY BEFORE FEBRUARY 1, THE CHILDREN'S TRUSTEE SHALL 24 REPORT TO THE APPROPRIATIONS COMMITTEES OF THE SENATE AND HOUSE 25 OF REPRESENTATIVES ALL OF THE FOLLOWING FOR THE PREVIOUS FISCAL 26 YEAR: 03938'01 6 1 (A) AMOUNT OF UNDISBURSED CHILD SUPPORT PAID TO THE 2 UNDISBURSED CHILD SUPPORT FUND. 3 (B) NUMBER OF CHILDREN WHO RECEIVED MONEY FROM THE UNDIS- 4 BURSED CHILD SUPPORT FUND. 5 (C) RECOMMENDATIONS FOR FUTURE DISTRIBUTION OF MONEY FROM 6 THE UNDISBURSED CHILD SUPPORT FUND. 7 (3) THE ADMINISTRATOR SHALL PROVIDE THE CHILDREN'S TRUSTEE 8 WITH SUFFICIENT STAFF AND OTHER RESOURCES FOR THE CHILDREN'S 9 TRUSTEE TO CARRY OUT THE DUTIES REQUIRED BY THIS ACT. 10 (4) THIS SECTION IS REPEALED 3 YEARS AFTER THE EFFECTIVE 11 DATE OF THIS SECTION. 12 Sec. 14. (1) Property held for the owner by a court, state, 13 or other government, governmental subdivision or agency, public 14 corporation, or public authority that remains unclaimed by the 15 owner for more than 1 year after becoming payable or distribu- 16 table is presumed abandoned. 17 (2) AS CLARIFICATION AND WITHOUT LIMITING THE PROPERTY TO 18 WHICH THIS SECTION APPLIES, THIS SECTION APPLIES TO INTANGIBLE 19 PROPERTY THAT IS MONEY PAID AS CHILD SUPPORT TO THE FRIEND OF THE 20 COURT OR THE STATE DISBURSEMENT UNIT. 21 Sec. 18. (1) A person holding property presumed abandoned 22 and subject to the state's custody as unclaimed property under 23 this act shall report to the administrator OR CHILDREN'S TRUSTEE 24 concerning the property as provided in this section. 25 (2) The report shall be verified and shall include all of 26 the following: 03938'01 7 1 (a) The name, if known, social security number, if known, 2 and last known address, if any, of each person appearing from the 3 records of the holder to be the owner of property of the value of 4 $50.00 or more presumed abandoned under this act. THE CHILDREN'S 5 TRUSTEE SHALL ENSURE THAT A HOLDER OF UNDISBURSED CHILD SUPPORT 6 REPORTS THE NAMES OF POSSIBLE RECIPIENTS OF THE UNDISBURSED CHILD 7 SUPPORT. This subdivision does not apply to travelers checks and 8 money orders. 9 (b) In the case of unclaimed funds of $50.00 or more held or 10 owing underanyA life or endowment insurance policy or annuity 11 contract, the full name and last known address of the insured or 12 annuitant and of the beneficiary according to the records of the 13 insurance company holding or owing the funds. 14 (c) In the case of the contents of a safe deposit box or 15 other safekeeping repository or of other tangible property, a 16 description of the property and the place where it is held and 17 may be inspected by the administrator and any amounts owing to 18 the holder. 19 (d) The nature and identifying number, if any, or descrip- 20 tion of the property and the amount appearing from the records to 21 be due. However, items of value under $50.00 each may be 22 reported in the aggregate. 23 (e) The date the property became payable, demandable, or 24 returnable, and the date of the last transaction with the appar- 25 ent owner with respect to the property. 03938'01 8 1 (f) Other information the administrator OR CHILDREN'S 2 TRUSTEE requires by rule as necessary for the administration of 3 this act. 4 (3) If the person holding property presumed abandoned and 5 subject to the state's custody as unclaimed property under this 6 act is a successor to other persons who previously held the prop- 7 erty for the apparent owner, or the holder has changed its name 8 while holding the property, the holder shall file with the report 9 all known names and addresses of each previous holder of the 10 property. 11 (4) Except as otherwise provided in this subsection, the 12 report shall be filed on or before November 1 of each year for 13 the 12-month period ending on the immediately preceding June 30. 14 The administrator OR CHILDREN'S TRUSTEE may postpone the date to 15 file a report, on written request byanyA person required to 16 file a report under this section. The administrator OR 17 CHILDREN'S TRUSTEE may extend the filing date for up to 60 days 18 after the deadline if an estimated payment is paid on or before 19 the deadline for the 12-month period ending on the immediately 20 preceding June 30. Remittance of an estimated payment without a 21 report on or before the deadline shall be considered a request 22 for extension. A request for extension of time to file the 23 report is not a request for an extension of time to remit 24 payments. Interest and penalties will not accrue during the 25 extension period against a person who remits an estimated 26 payment. The administrator OR CHILDREN'S TRUSTEE shall determine 27 how estimated payments are to be remitted. 03938'01 9 1 (5) Not less than 60 days or more than 365 days before 2 filing the report required by this section, the holder in posses- 3 sion of property presumed abandoned and subject to the state's 4 custody as unclaimed property under this act shall send written 5 notice to the apparent owner at his or her last known address 6 informing him or her that the holder is in possession of property 7 subject to this act if all of the following requirements are 8 met: 9 (a) The holder has in its records an address for the appar- 10 ent owner that the holder's records do not disclose to be 11 inaccurate. 12 (b) The claim of the apparent owner is not barred by the 13 statute of limitations. 14 (c) The property has a value of $50.00 or more or, if the 15 holder filing a report under this section is reporting for the 16 current report year at least 25,000 properties over $50.00 each, 17 the property has a value of $100.00 or more. 18 Sec. 19. (1) The administrator OR CHILDREN'S TRUSTEE shall 19 cause a notice to be published not later than November 1 of the 20 year immediately following the report required by section 18 in a 21 newspaper of general circulation in the county of this state in 22 which is located the last known address of any person named in 23 the notice. If no address is listed or the address is outside 24 this state, the notice must be published in the county in which 25 the holder of the property has its principal place of business 26 within this state or another county as determined by the 27 administrator OR CHILDREN'S TRUSTEE. 03938'01 10 1 (2) The published notice shall be entitled "notice of names 2 of persons appearing to be owners of abandoned property" OR 3 "NOTICE OF NAMES OF PAYEES OF UNDISBURSED CHILD SUPPORT" and con- 4 tain all of the following: 5 (a) The names, in alphabetical order, of persons listed in 6 the report and entitled to notice within the county as specified 7 in subsection (1). THE NOTICE OF NAMES OF PAYEES OF UNDISBURSED 8 CHILD SUPPORT SHALL INCLUDE, AS POSSIBLE OWNERS OF UNDISBURSED 9 CHILD SUPPORT, THE NAMES OF THE CUSTODIAL PARENT AND EACH CHILD 10 FOR WHOM SUPPORT HAS BEEN PAID. 11 (b) A statement that information concerning the property may 12 be obtained byanyA person possessing an interest in the prop- 13 erty by addressing an inquiry to the administrator OR CHILDREN'S 14 TRUSTEE. 15 (c) A statement informing an owner of property held by the 16 administrator OR CHILDREN'S TRUSTEE on how to file a claim with 17 the administrator OR CHILDREN'S TRUSTEE to receive his or her 18 property. 19 (3) The administrator OR CHILDREN'S TRUSTEE is not required 20 to publish in the notice any items of less than $50.00 unless the 21 administrator OR CHILDREN'S TRUSTEE considers their publication 22 to be in the public interest. THE CHILDREN'S TRUSTEE SHALL PRO- 23 VIDE PUBLIC SERVICE ANNOUNCEMENTS ON FILING A CLAIM FOR UNDIS- 24 BURSED CHILD SUPPORT. 25 (4) THE CHILDREN'S TRUSTEE SHALL SEARCH FOR IDENTIFYING 26 INFORMATION FOR EACH OWNER OF UNDISBURSED CHILD SUPPORT LISTED IN 27 THE NOTICE PUBLISHED UNDER THIS SECTION ON ALL OF THE FAMILY 03938'01 11 1 INDEPENDENCE AGENCY'S ELECTRONIC DATA SYSTEMS, INCLUDING, BUT NOT 2 LIMITED TO, THE CLIENT INFORMATION SYSTEM, CLIENT SERVICES 3 SYSTEM, CHILD SUPPORT AUTOMATION SYSTEMS, STATE PARENT LOCATOR 4 SERVICE, AND FEDERAL PARENT LOCATOR SERVICE. THE ELECTRONIC DATA 5 SOURCE SHALL NOT BE RELEASED FOR DATABASES CONTAINING CONFIDEN- 6 TIAL INFORMATION. 7 (5)(4)This section is not applicable to sums payable on 8 travelers checks, money orders, and other written instruments 9 presumed abandoned under section 5. 10 Sec. 20. (1) A person who is required to file a report 11 under section 18 shall at the time for filing the report pay or 12 deliver to the administrator OR CHILDREN'S TRUSTEE all abandoned 13 property that is required to be reported under section 18 or any 14 balance owing if an estimated payment was made under section 18. 15 (2) The holder of an interest under section 11 shall deliver 16 a duplicate certificate or other evidence of ownership if the 17 holder does not issue certificates of ownership to the 18 administrator. Upon delivery of a duplicate certificate to the 19 administrator, the holder andanyA transfer agent, registrar, 20 or other person acting for or on behalf of a holder in executing 21 or delivering the duplicate certificate is relieved of all 22 liability of every kind in accordance with the provision of sec- 23 tion 21 to every person, includinganyA person acquiring the 24 original certificate or the duplicate of the certificate issued 25 to the administrator, foranylosses or damages resulting to 26anyA person by the issuance and delivery to the administrator 27 of the duplicate certificate. 03938'01 12 1 Sec. 21. (1) Upon the payment or delivery of property to 2 the administrator OR CHILDREN'S TRUSTEE, the state assumes cus- 3 tody and responsibility for the safekeeping of the property. A 4 person who pays or delivers property to the administrator OR 5 CHILDREN'S TRUSTEE in good faith is relieved of all liability to 6 the extent of the value of the property paid or delivered for 7anyA claim then existing orwhichTHAT may arise or be made 8 in respect to the property after the payment or delivery to the 9 administrator OR CHILDREN'S TRUSTEE. 10 (2) A holder who has paid money to the administrator 11pursuant toOR CHILDREN'S TRUSTEE IN ACCORDANCE WITH this act 12 may make payment toanyA person appearing to the holder to be 13 entitled to payment and, upon filing proof of payment and proof 14 that the payee was entitled to the payment, the administrator OR 15 CHILDREN'S TRUSTEE shall promptly reimburse the holder for the 16 payment without imposinganyA fee or other charge. If reim- 17 bursement is sought for a payment made on a negotiable instru- 18 ment, including a travelers check or money order, the holder 19 shall be reimbursed under this subsection upon filing proof that 20 the instrument was duly presented and that payment was made to a 21 person who appeared to the holder to be entitled to payment. The 22 holder shall be reimbursed for payment made under this subsection 23 even if the payment was made to a person whose claim was barred 24 under section 30(1). 25 (3) A holder who has delivered property, including a certif- 26 icate of any interest in a business association, other than money 27 to the administratorpursuant toUNDER this act, may reclaim 03938'01 13 1 the property if still in the possession of the administrator, 2 without payinganyA fee or other charge, upon filing proof 3 that the owner has claimed the property from the holder. 4 (4) The administrator OR CHILDREN'S TRUSTEE may accept the 5 holder's affidavit as sufficient proof of the facts that entitle 6 the holder to recover money and property under this section. 7 (5) If the holder pays or delivers property to the adminis- 8 trator OR CHILDREN'S TRUSTEE in good faith and another person 9 claims the property from the holder or another state claims the 10 money or property under its laws relating to escheat or abandoned 11 or unclaimed property, the administrator OR CHILDREN'S TRUSTEE, 12 upon written notice of the claim, shall defend the holder against 13 the claim and indemnify the holder against any liability on the 14 claim. 15 (6) For the purposes of this section, "good faith" means all 16 of the following: 17 (a) That payment or delivery was made in a reasonable 18 attempt to comply with this act. 19 (b) That the person delivering the property was not a fidu- 20 ciary then in breach of trust in respect to the property and had 21 a reasonable basis for believing, based on the facts then known 22 to him or her, that the property was abandoned for the purposes 23 of this act. 24 (c) That there is no showing that the records under which 25 the delivery was made did not meet reasonable commercial stan- 26 dards of practice in the industry. 03938'01 14 1 (7) Property removed from a safe deposit box or other 2 safekeeping repository is received by the administrator subject 3 to the holder's right under this subsection to be reimbursed for 4 the actual cost of the opening and toanyA valid lien or con- 5 tract providing for the holder to be reimbursed for unpaid rent 6 or storage charges. The administrator shall reimburse or pay the 7 holder out of the proceeds remaining after deducting the 8 administrator's selling cost. 9 (8) For purposes of section 7(1)(e), a banking or financial 10 organization is considered to have acted in good faith if it has 11 made a reasonable search of its records as determined by the com- 12 mercial standards of practice in the industry and reasonably 13 determined that the banking or financial organization does not 14 have another relationship with the apparent owner. 15 Sec. 24. (1) Except as otherwise provided by this section, 16 the administrator shall promptly deposit in the general fund of 17 this state all funds received under this act, including the pro- 18 ceeds from the sale of abandoned property under section 23. The 19 administrator shall retain in a separate trust fund an amount not 20 less than $100,000.00 from which prompt payment of claims allowed 21 under this act shall be made. When making the deposit, the 22 administrator shall record the name and last known address of 23 each person appearing from the holders' reports to be entitled to 24 the property and the name and last known address of each insured 25 person or annuitant and beneficiary and with respect to each 26 policy or contract listed in the report of an insurance company, 27 the number of the policy or contract, the name of the insurance 03938'01 15 1 company, and the amount due. The name of the owner or apparent 2 owner and a gross description of the property only shall be 3 available for public inspection at all reasonable business 4 hours. 5 (2) Before makinganyA deposit to the credit of the gen- 6 eral fund, the administrator may deduct any of the following: 7 (a) Costs in connection with the sale of abandoned 8 property. 9 (b) Costs of mailing and publication in connection with 10anyabandoned property. 11 (c) Reasonable service charges. 12 (d) Costs incurred in examining records of holders of prop- 13 erty and in collecting the property from those holders. 14 (3) The administrator shall transfer to the senior care 15 respite fund created in the older Michiganians act,Act No. 18016of the Public Acts of 1981, being sections 400.581 to 400.594 of17the Michigan Compiled Laws1981 PA 180, MCL 400.581 TO 400.594, 18 funds that escheat to this statepursuant toUNDER section 403a 19 of the nonprofit health care corporation reform act,Act No. 35020of the Public Acts of 1980, being section 550.1403a of the21Michigan Compiled Laws1980 PA 350, MCL 550.1403A. 22 Sec. 25. (1) A person, excluding another state, claiming an 23 interest inanyA property paid or delivered to the administra- 24 tor OR CHILDREN'S TRUSTEE under this act, may file with the 25 administrator OR CHILDREN'S TRUSTEE a claim on a form prescribed 26 by the administrator OR CHILDREN'S TRUSTEE and verified by the 27 claimant. 03938'01 16 1 (2) The administrator OR CHILDREN'S TRUSTEE shall consider 2 each claim within 90 days after it is filed and give written 3 notice to the claimant if the claim is denied in whole or in 4 part. The notice may be given by mailing it to the last address, 5 if any, stated in the claim as the address to which notices are 6 to be sent. If no address for notices is stated in the claim, 7 the notice may be mailed to the last address, if any, of the 8 claimant as stated in the claim. No notice of denial need be 9 given if the claim fails to state either the last address to 10 which notices are to be sent or the address of the claimant. 11 (3) If a claim is allowed, the administrator OR CHILDREN'S 12 TRUSTEE shall pay over or deliver to the claimant the property or 13 the amount the administrator OR CHILDREN'S TRUSTEE actually 14 received or the net proceeds if it has been sold by the adminis- 15 trator, plus any additional amount required by section 22. If 16 the property claimed was interest bearing to the owner on the 17 date of surrender by the holder, and if the date of surrender is 18 on or after March 28, 1996, the administrator also shall pay 19 interest at a rate of 6% a year or any lesser rate the property 20 earned while in the possession of the holder. Interest begins to 21 accrue when the interest bearing property is delivered to the 22 administrator and ceases on the earlier of the expiration of 10 23 years after delivery or the date on which payment is made to the 24 owner. No interest on interest bearing property is payable for 25 any period before March 28, 1996. 26 (4)AnyA holder who pays the owner for property that has 27 been delivered to the state andwhichTHAT, if claimed from the 03938'01 17 1 administrator OR CHILDREN'S TRUSTEE, would be subject to 2 subsection (3) shall add interest as provided in that 3 subsection. The added interest must be repaid to the holder by 4 the administrator OR CHILDREN'S TRUSTEE in the same manner as the 5 principal. 6 Sec. 27. A person who is aggrieved by a decision of the 7 administrator OR CHILDREN'S TRUSTEE or whose claim has not been 8 acted upon within 90 days after its filing may bring an action to 9 establish the claim in the circuit court, naming the administra- 10 tor OR CHILDREN'S TRUSTEE as a defendant. The action shall be 11 brought within 90 days after the decision of the administrator OR 12 CHILDREN'S TRUSTEE or within 180 days after the filing of the 13 claim if the administrator OR CHILDREN'S TRUSTEE has failed to 14 act on it. If the aggrieved person establishes the claim in an 15 action against the administrator OR CHILDREN'S TRUSTEE, the court 16 shall award the claimant costs and reasonable attorney's fees. 17 Sec. 31. (1) The administrator OR CHILDREN'S TRUSTEE may 18 require a person who has not filed a report under this act or a 19 person who the administrator OR CHILDREN'S TRUSTEE believes has 20 filed an inactive, incomplete, or false report, to file a veri- 21 fied report in a form specified by the administrator OR 22 CHILDREN'S TRUSTEE. The report shall state whether the person is 23 holdinganyunclaimed property reportable or deliverable under 24 this act, describe unclaimed property not previously reported or 25 as to which the administrator OR CHILDREN'S TRUSTEE has made 26 inquiry, and specifically identify and state the amounts of 27 property that may be in issue. 03938'01 18 1 (2) The administrator OR CHILDREN'S TRUSTEE, at reasonable 2 times and upon reasonable notice, may examine the records of a 3 person to determine whether the person has complied with this 4 act. The administrator OR CHILDREN'S TRUSTEE may conduct the 5 examination even if the person believes he or she is not in pos- 6 session ofanyproperty reportable or deliverable under this 7 act. The administrator OR CHILDREN'S TRUSTEE may contract with 8any otherANOTHER person to conduct the examination on behalf 9 of the administrator OR CHILDREN'S TRUSTEE. 10 (3) If a person is treated under section 13 as the holder of 11 the property only insofar as the interest of the business associ- 12 ation in the property is concerned, the administrator,pursuant13toAS PROVIDED IN subsection (2), may examine the records of the 14 person if the administrator has given the notice required by 15 subsection (2) to both the person and the business association at 16 least 90 days before the examination. 17 (4) If an examination of the records of a person results in 18 the disclosure of property reportable and deliverable under this 19 act, the administrator OR CHILDREN'S TRUSTEE may assess the cost 20 of the examination against the holder at the rate of $50.00 a day 21 for each examiner; however, the charges shall not exceed the 22 value of the property found to be reportable and deliverable. 23 The cost of examination madepursuant toUNDER subsection (3) 24 shall be imposed only against the business association. 25 (5) If, AFTER MARCH 28, 1996, a holder failsafter the26effective date of this actto maintain the records required by 27 section 32 and the records of the holder available for the 03938'01 19 1 periods subject to this act are insufficient to permit the 2 preparation of a report, the administrator OR CHILDREN'S TRUSTEE 3 may require the holder to report and pay an amount as may reason- 4 ably be estimated from any available records. 5 Sec. 33. The administrator OR CHILDREN'S TRUSTEE may bring 6 an action in a court of competent jurisdiction to enforce this 7 act. 8 Enacting section 1. This amendatory act does not take 9 effect unless all of the following bills of the 91st Legislature 10 are enacted into law: 11 (a) Senate Bill No. _______ or House Bill No. _______ 12 (request no. 03964'01). 13 (b) Senate Bill No. _______ or House Bill No. _______ 14 (request no. 03965'01). 03938'01 Final page. GWH