The purpose of the rules is to do the following: Rule 69I-20.0011, F.A.C.: The purpose and effect of the proposed rule is to implement the disclosure provisions of Sections 717.135(3) and 717.1351(2) and (4), F.S. Rule 69I-20.0027: The purpose and ...

 

DEPARTMENT OF FINANCIAL SERVICES
Division of Accounting and Auditing

RULE NO: RULE TITLE
69I-20.0011: Full Disclosure Statement.
69I-20.0027: Payment of Conflicting Claims
69I-20.0028: General Principles for Joint Ownership of Property.
69I-20.0029: Survivorship Accounts Reported by a Financial Institution.
69I-20.031: Holder Due Diligence.
69I-20.050: Voluntary Disclosure Agreements
PURPOSE AND EFFECT: The purpose of the rules is to do the following:
Rule 69I-20.0011, F.A.C.: The purpose and effect of the proposed rule is to implement the disclosure provisions of Sections 717.135(3) and 717.1351(2) and (4), F.S.
Rule 69I-20.0027: The purpose and effect of the proposed rule amendment is to repeal the conflicting claims rule.
Rule 69I-20.0028, F.A.C.: The purpose and effect of the proposed rule is to provide general principles for jointly owned property.
Rule 69I-20.0029, F.A.C.: The purpose and effect of the proposed rule is to provide that “and” accounts, “or” accounts, and accounts otherwise reported by financial institutions in the name of two or more individuals shall be treated as survivorship accounts in the absence of evidence to the contrary.
Rule 69I-20.031, F.A.C.: The purpose and effect of the proposed rule is to merge the definition of the term “due diligence” codified in Section 717.101(9), F.S., with the statutory provision of Section 717.117(4), F.S., which implements the definition.
Rule 69I-20.050, F.A.C.: The purpose and effect of the proposed rule amendment is to amend the rule and provide that a holder may not enter into a voluntary disclosure agreement if the holder has agreed to a self-audit, been requested by the Department to conduct a self-audit, or has been notified of the Department’s intention to audit or examine the holder.
SUMMARY: The proposed rule changes implement the disclosure provisions of Sections 717.135(3) and 717.1351(2) and (4), F.S., repeal the conflicting claims rule which provides six examples of how conflicting claims are to be paid, provide general principles for jointly owned property, provide that accounts reported by financial institutions shall be treated as survivorship accounts in the absence of evidence to the contrary, merge the definition of the term “due diligence” codified in Section 717.101(9), F.S., with the statutory provision of Section 717.117(4), F.S., and provide that a holder may not enter into a voluntary disclosure agreement if the holder has agreed to a self-audit, been requested by the Department to conduct a self-audit, or has been notified of the Department’s intention to audit or examine the holder.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 717.117(1), 717.138 FS.
LAW IMPLEMENTED: 655.005, 655.79, 717.101, 717.117, 717.119, 717.124, 717.1241, 717.12403, 717.126, 717.129, 717.135, 717.1351, 731.201 FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE,TIME AND PLACE SHOWN BELOW(IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):
DATE AND TIME: Thursday, August 7, 2008, 9:00 a.m.
PLACE: Suite 547, The Fletcher Building, 101 E. Gaines St., Tallahassee, Florida
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in the meeting or hearing, please advise the Department at least 5 calendar days before the program by contacting the person listed below. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Paul C. Stadler, Jr., Assistant General Counsel, Department of Financial Services, 200 E. Gaines St., Tallahassee, Florida 32399-4247, [phone]

THE FULL TEXT OF THE PROPOSED RULE IS:

69I-20.0011 Disclosure.

(1) For purposes of the FULL DISCLOSURE STATEMENT codified in Sections 717.135(3) and 717.1351(2), F.S., the mailing address of the Bureau of Unclaimed Property is “State of Florida Department of Financial Services, Bureau of Unclaimed Property, P. O. Box 1910, Tallahassee, FL 32302-1910”.

(2) For purposes of the FULL DISCLOSURE STATEMENT codified in Sections 717.135(3) and 717.1351(2), F.S., the Internet address of the Bureau of Unclaimed Property is “www.fltreasurehunt.org”.

(3) For purposes of the FULL DISCLOSURE STATEMENT codified in Sections 717.135(3) and 717.1351(2), F.S., and for purposes of Section 717.1351(4), F.S., the property description obtained from the CD-ROM of claimable accounts obtained from the Bureau of Unclaimed Property may be used as the property category.

(4) For purposes of the FULL DISCLOSURE STATEMENT codified in Sections 717.135(3) and 717.1351(2), F.S., the property category, date of last contact, and property remitted by or holder information from a single account that is being claimed may be disclosed in the FULL DISCLOSURE STATEMENT.

Specific Authority 717.138 FS. Law Implemented 717.135, 717.1351 FS. History–New________.

 

69I-20.0027 Payment of Conflicting Claims.

Specific Authority 717.138 FS. Law Implemented 717.124, 717.1241, 717.126 FS. History–New 1-3-05, Repealed________.

 

69I-20.0028 General Principles for Joint Ownership of Property for Accounts that are not Unclaimed Demand, Savings or Checking Accounts Formerly Held by a Financial Institution.

(1) Tenancy in common. Generally, each owner is entitled to receive a percentage share of the unclaimed property. If there are two owners, each owner will receive 50%; if there are 3 owners, each owner will receive 33.33%, etc. If an owner dies, the percentage share of the unclaimed property shall be remitted to that owner’s estate or beneficiary, as defined in Section 731.201, F.S., provided that entitlement is established in accordance with Section 717.126, F.S. Unclaimed property reported with more than one owner designated with the word “and” is treated as a tenancy in common.

(2) Joint Tenancy with Rights of Survivorship. This type of property involves two or more people. Generally, each owner is entitled to receive a percentage share of the unclaimed property. If there are two owners, each owner will receive 50%; if there are 3 owners, each owner will receive 33.33%, etc. If one of the owners dies, the remaining owner or owners are entitled to receive the unclaimed property. If all owners are deceased, the unclaimed property shall be remitted to the estate or beneficiary of the last surviving owner provided that entitlement is established in accordance with Section 717.126, F.S.

(3) Tenancy by the Entirety. This type of tenancy applies only to married persons. Both persons must file a claim for the unclaimed property. If one spouse dies, the surviving spouse is entitled to the unclaimed property. If both owners are deceased, the unclaimed property shall be remitted to the estate or beneficiary of the last surviving spouse provided that entitlement is established in accordance with Section 717.126, F.S. If the spouses divorce, the tenancy by the entirety is converted to a tenancy in common.

Specific Authority 717.138 FS. Law Implemented 717.124, 717.126, 731.201 FS. History–New________.

 

69I-20.0029 Survivorship Accounts Reported by a Financial Institution.

(1) In the absence of evidence to the contrary, an unclaimed demand, savings, or checking account from a financial institution as defined in Section 655.005, F.S., reported to the Department as an “and” account or as an “or” account, or otherwise reported in the name of two or more persons shall be treated as a survivorship account notwithstanding Rule 69I-20.0028, F.A.C.

(2) This rule relates to proving entitlement pursuant to Section 717.126, F.S., and shall not be interpreted as affecting any private cause of action that one account holder may have against a joint account holder.

Specific Authority 717.138 FS. Law Implemented 655.005, 655.79, 717.12403, 717.126 FS. History–New________.

 

69I-20.031 Holder Due Diligence.

Holders of inactive accounts having a value of $50 or more shall, not more than 120 days and not less than 60 days prior to filing the unclaimed property report, send written notice to the apparent owner's last known address informing the apparent owner that the holder is in possession of property subject to Florida’s Disposition of Unclaimed Property Act, Chapter 717, Florida Statutes. However, if the holder has in its records an address for the apparent owner which the holder's records disclose to be inaccurate, the holder shall use due diligence to locate the apparent owner. “Due diligence” means the use of reasonable and prudent methods under particular circumstances to locate apparent owners of inactive accounts using a taxpayer identification number or social security number, if known. Reasonable and prudent methods may include, but are not limited to, using a nationwide database, cross-indexing with other records of the holder, or engaging a licensed agency or company capable of conducting such search and providing updated addresses.

Specific Authority 717.138 FS. Law Implemented 717.101, 717.117 FS. History–New________.

 

69I-20.050 Voluntary Disclosure Agreements.

(1) The Department's mission goal is to collect and return unclaimed property to its rightful owners in accordance with the Florida Disposition of Unclaimed Property Act, Chapter 717, F.S. To achieve these results, the Department is encouraging businesses (“Holders”) inside and outside the State of Florida who are in possession of unclaimed property to comply with Florida’s Unclaimed Property Law. This compliance can be achieved using a program called voluntary disclosure. This program provides the following benefits to a Holder holder:

(a) It relieves the Holder of associated expense and liability holding unclaimed property;

(b) Penalties and fines are not assessed by the Department;

(c) The reach back period for the review of the Holder’s records is five years instead of ten years; and

(d) The audit period for verification of the disclosure is two years from the date that the report and remittance is accepted by the Department.

(2) To participate in this program, the Holder must not:

(a) Be currently under examination or audit; or

(b) Have filed an annual report of unclaimed property with the Department,

(c) Have agreed to a Department assisted or contractor assisted self-audit,

(d) Have been requested to conduct a Department assisted or contractor assisted self-audit, or

(e) Have been notified by the Department or by one of the Department’s contract auditors of the intention or desire to conduct an examination or audit of the holder.

Specific Authority 717.117(1), 717.138 FS. Law Implemented 717.117, 717.119, 717.129 FS. History–New 1-3-05, Amended_________.

NAME OF PERSON ORIGINATING PROPOSED RULE: Walter Graham, Chief, Bureau of Unclaimed Property
NAME OF SUPERVISOR OR PERSON WHO APPROVED THE PROPOSED RULE: Doug Darling, Director, Division of Accounting and Auditing
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: June 18, 2008
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: February 8, 2008