Wednesday, February 27, 2013

Aggregate Reporting Under the Microscope in California

Under most state unclaimed property laws, there exists a mechanism called "aggregate reporting" whereby the holder of the funds is permitted (or in some states, required) to report and remit items under a specific dollar amount (usually $50) in one lump sum, without providing owner name and address information.  As we've discussed previously in this space, while aggregate reporting reduces administrative burden on the holder and on the state, that process is arguably inconsistent with the primary purpose of the unclaimed property laws -- to try and reunite owners with their missing funds.  Obviously, to the extent that the state does not have identification information for the owner of the funds, the state cannot search for that owner or take any action to return the funds.

A recent situation in California demonstrates this problem.  According to a report by CBS 13 Sacramento, a fifteen year old California resident learned that his $30 savings account was turned over to the state by his bank because of a lack of activity.  When he and his family went to search for the funds, however, they state was unable to locate the account.  They eventually contacted CBS 13 consumer investigation reporter Kurtis Ming, who learned that since 2007 California brought in more than $68 million in funds without owner name and address.  Ultimately, the bank - not the state - gave the money back to its customer, but the story isn't over yet.

California Assemblymember Bonnie Lowenthal has authored a bill to close this unclaimed property "loophole" and would require holders to report owner-identification information for all amounts, regardless of size.  Assembly Bill 212 would remove the provisions of California unclaimed property law that permit balances of less than $50 to be reported in the aggregate, and would also require holders to send notice to all owners of unclaimed property -- regardless of the balance.  The bill is currently before the Assembly Judiciary Committee.
 

2 comments:

  1. No matter what type of Michael Kors Bags Outlet each individual got, they all had one thing in common. We all know that getting something on sale is like winning a mini lottery, but to find a name brand handbag like Michael Kors Black Friday Sale for instance, discounted is like a slice of heaven on earth. I have personally attacked my husband with hugs and kisses when finding Official Coach Outlet Online at discounted prices.

    Michael Kors Factory Outlet stores can be found in malls all over. MK Outlet and other Coach merchandise can also be found in some boutiques. Inspired by the same material baseball gloves are made from, these Coach Bags On Sale Online are versatile and stylish. Since it's conception, the Michael Kors Handbags Outlet has been produced into a variety of designs, colors, shapes, and styles that have won top pick of millions of women the world over.

    New Michael Kors Bags are the most sought after handbag. Since Coach Outlet Online is one of the most recognized name brands in the world of fashion, you will find A-list celebrities down to small girls wearing them.

    tags:Coach Outlet|Coach Bags Factory Outlet|Coach Purses Outlet

    ReplyDelete