Current through Register Vol. 50, No. 9, March 1, 2024
NECESSITY, FUNCTION, AND CONFORMITY: KRS 393.280(4) allows the
State Treasurer to promulgate administrative regulations and any reasonable and
necessary rules for the enforcement of KRS Chapter 393. KRS 393.110(1) requires
the holder of unclaimed property to submit annual reports to the Department of
the Treasury concerning the property. This administrative regulation
establishes the reporting requirements for a holder of unclaimed
property.
Section 1. Reports Filed by a
Holder of Unclaimed Property. A holder of unclaimed property shall annually
file, in accordance with KRS 393.110, a completed, Unclaimed Property
Report/Remit Form with the Department of the Treasury no later than the close
of business on November 1 of each year.
(1) A
holder of property presumed abandoned shall make an annual report to the
Department of the Treasury concerning the property. The annual report shall
cover the twelve (12) months ending on June 30 of that year. Holders are
required to submit their report by diskette or compact disc in the format
required by the department for ten (10) or more properties. All property so
reported shall be turned over simultaneously with the report by November 1 to
the Department of the Treasury. This reporting requirement applies to all
properties, with the exception of travelers' checks and money orders, and shall
be verified and shall include:
(a) The name,
if known, and last known address, if any, of each person appearing from the
records of the holder to be the owner of any property of value of $100 or more
presumed abandoned under this chapter and in the case of unclaimed funds of
life insurance corporations, the full name of the insured or annuitant and his
or her last known address according to the records of the life insurance
corporation;
(b) Identifying data
of the property owner, including, Social Security number, date of birth, policy
number, check number, name, and address of listed beneficiaries,
etc.;
(c) Description of the
property, including, physical description, property type codes, and the amount
appearing from the records to be due, except items of value of $100 or less.
The items of value of $100 or less may be reported in aggregate.
(d) The date when the property became
payable, demandable, or returnable, and the date of the last known transaction
with the owner with respect to the property if readily available.
(2) If the fair cash value of the
property is more than $100, the holder of property presumed abandoned shall
send written notice to the apparent owner, not more than 120 days or less than
sixty (60) days before filing the report, stating that the holder is in
possession of the property subject to this section. The holder shall not be
required to mail a notice to any apparent owner where the fair cash value of
the property is $100 or less. The notice shall contain:
(a) The statement to the owner that
properties are being held to which the addressee appears entitled;
(b) The name and address of the person
holding the property and any necessary information regarding a change of name
and address of the holder; and
(c)
A statement, that if satisfactory proof of claim is not presented by the owner
to the holder by the date specified, the property shall be placed in the
custody of the department to whom all further claims shall be
directed.
(3)
(a) A person shall turn over to the
department all property reportable as required by KRS Chapter 393 and this
administrative regulation to the department by November 1, unless:
1. The person making the report or the owner
of the property shall certify to the department that any or all of the
statutory conditions necessary to create a presumption of abandonment no longer
exists or never did exist; or
2.
The person is able to provide documentation of facts or circumstances that will
rebut the presumption of abandonment;
(b) If either of these conditions are met,
then the person reporting or holding the property shall not be required to turn
the property over to the department except on order of court.
(4) The holder of abandoned
property shall maintain its records for a period of five (5) years from the
date of its report for items reported in the aggregate.
(5) If the owner of the property reported in
the aggregate makes a valid claim within five (5) years, the holder shall
provide the owner with account data necessary for the department to identify
the account from the aggregate amount.
(6) The annual reports shall be retained by
the department for a period of five (5) years.
(7)
(a) The department shall
notify all apparent owners of the unclaimed property in accordance with this
section by means of posting on the department's Web site.
(b) The department may use any of the
following to provide additional notice to the apparent owners:
1. Publication in a newspaper of general
circulation:
a. In the area of the state in
which the last known address of a person to be named in the notice is located;
or
b. If the address is unknown, in
the area in which the holder has its principal place of business in the state;
or
2. Individual contact
by regular or electronic mail, or by telephone, if the department has current
contact information on file;
(c) shall, notwithstanding KRS 424.180 and
424.190, provide, on an annual basis, notice or published advertisement of
property transferred to it. Any procedures prescribed by the department in
accordance with this section shall employ the most cost-effective methods
available for the submission of reports to the department and the notice or
advertisement of property transferred to the department. The cost of the
publication shall be paid by the state.
(d) The advertisement shall be published as
required on or before October 1 following the year when the report was
received, and the publishing shall be paid constructive notice to all
parties.
(8) If a person
files an action in court claiming any property which has been reported, or is
to be reported, under the provisions of this chapter, the person reporting or
holding the property shall be under no duty, while the action is pending, to
turn the property over to the department, but shall have a duty of notifying
the department of the pendency of the action.
(9) The person reporting or holding the
property or any claimant of it shall always have the right to a judicial
determination of his or her rights under this chapter, and nothing in this
chapter shall be construed otherwise. The Commonwealth may institute an action
to recover the property presumed abandoned, whether it has been reported or
not, and may include in one (1) petition all property within the jurisdiction
of the court in which the action is brought, if the property of different
persons is set out in separate paragraphs.
Section 2. Reports on Property Held in an
Interest Bearing Account. If the holder of unclaimed property is required to
place that property in an interest bearing account, pursuant to KRS 393.130,
the holder shall submit to the Department of the Treasury the following
reports: A statement on the interest-bearing account holding unclaimed
property. The statement shall:
(1) Be the kind
normally issued on an interest-bearing account;
(2) Be filed with the Department of the
Treasury on an annual basis according to the holder's normal course of
business; and
(3) Include the value
of the unclaimed property and the amount of the interest paid on the
account.
Section 3.
Reports on an Amount Paid Out of an Account Holding Unclaimed Property.
(1) A holder of an account holding unclaimed
property shall file a report within ten (10) business days of paying an amount
out of the account.
(2) The report
shall include:
(a) The name, Social Security
number, and the address of the property owner;
(b) The amount paid;
(c) The portion of the amount that represents
interest paid and the portion that represents the original amount of unclaimed
property;
(d) The date the property
was presumed abandoned;
(e) Proof
of payment;
(f) An itemization of
each fee or expense charged against the account; and
(g) An affidavit indicating:
1. What specific proof was used in
determining that the person that received the amount or payment was the
rightful claimant; and
2. That the
procedures for paying a claim for unclaimed property as established in 20 KAR 1:040 were followed.
(3) The report shall be filed at the
Department of the Treasury.
Section
4. Incorporation by Reference.
(1) "Unclaimed Property Report/Remit Form",
2006 edition, is incorporated by reference.
(2) This material may be inspected, copied,
or obtained, subject to applicable copyright law, at the Department of the
Treasury, 1050 U.S. Hwy. 127 South, Suite 100, Frankfort, Kentucky 40601,
Monday through Friday, 8 a.m. to 4:00 p.m.