The proposed rulemaking amends Rule 69G-20.0021, F.A.C., to delete duplicative and unnecessary language and updates the Division of Unclaimed Property’s payment practices. The proposed rulemaking also repeals Rule 69G-20.0011, ....

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Unclaimed Property

RULE NOS.:RULE TITLES:

69G-20.0011FULL DISCLOSURE STATEMENT

69G-20.0021PROCEDURES FOR FILING CLAIM

PURPOSE AND EFFECT: The proposed rulemaking amends Rule 69G-20.0021, F.A.C., to delete duplicative and unnecessary language and updates the Division of Unclaimed Property’s payment practices. The proposed rulemaking also repeals Rule 69G-20.0011, F.A.C., as it is no longer necessary.

SUMMARY: The rulemaking outlines how the Department will make payment and delivery of unclaimed property to claimants.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The Department’s economic review for this rulemaking.

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.

RULEMAKING AUTHORITY: 717.124, 717.135, 717.138 FS.

LAW IMPLEMENTED: 92.525, 668.50, 717.1201, 717.124, 717.12403, 717.12404, 717.12405, 717.1242, 717.1243, 717.125, 717.126, 717.1261, 717.1262, 717.135, 717.138 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Phillip Carlton, Assistant Director, Division of Unclaimed Property, Department of Financial Services, 101 East Gaines Street, Tallahassee, Florida 32399-0258, [phone], [e-mail].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69G-20.0011 Full Disclosure Statement.

Rulemaking Authority 717.138 FS. Law Implemented 717.135, 717.1351 FS. History–New 4-27-09, Formerly 69I-20.0011, Repealed                   .

 

69G-20.0021 Procedures for Filing Claim.

(1) through (7) No change.

(8) Payment and Delivery of Unclaimed Property for approved claims.

(a) Cash.Payment and Delivery when Claim is Filed by person entitled to the unclaimed property.

1. For claims filed by the person entitled to the unclaimed property, the claimant can elect to receive payment by warrant, electronic fund transfer, or stored value product or account. The claimant must select the preferred payment method in writing within five (5) days of claim approval. If the claimant does not select a payment method in writing within the specified time period, the Department will issue a warrant to the claimant. Cash. The Department will issue and mail a warrant payable to the claimant.

2. For claims filed by a Claimant’s Representative, the claimant can elect to receive payment, net of the Claimant’s Representative’s fees, as set forth in paragraph (8)(a)1. above. Payment of fees to Claimant’s Representatives will be made by electronic fund transfer at least twice a month.

(b) Securities.

1. The Department will liquidate all securities which can be sold as soon as practicable, unless the security cannot be sold due to market conditions. Payment will be provided as follows:

2.a. If the securities have been liquidated, payment of the cash proceeds will be made in accordance with paragraph (8)(a) above. by warrant and mailed to the claimant’s address.

3.b. For Securitiessecurities that cannot be sold due to market conditions and can be certificated, the Department will request, in writing, a certificate be issued for the number of shares due the claimant and the certificate be registered in the claimant’s name, unless the claimant requests, in writing that the securities be transferred will be electronically transferred to the claimant’s existing brokerage, mutual fund, or other securities type account, provided the Department has the information required by the securities industry. is available at the time the claim is filed. The information required by the securities industry for electronic transfer could include the broker or agent’s DTC number (Depository Trust Corporation), ABA number (American Banker’s Association), the claimant’s brokerage, mutual fund, or other securities type account number and account registration.

4.c. Certificated securities that cannot be sold, due to market conditions will be registered in the name of the claimant claimant’s name and mailed to the claimant’s address.

d. For securities that cannot be sold due to market conditions, and cannot be certificated, the Department will make an attempt to electronically transfer the securities to the claimant’s brokerage, mutual fund, or other securities type account, providing the information required by the securities industry is provided at the time the claim is filed.

5.e. Securities that cannot be sold, certificated, or electronically transferred will not be paid or delivered. Written notice will be provided to the claimant owner.

f. All securities will be registered according to industry standards.

(c)3. Tangible Personal Property.

1.a. If the property is valued at less than ten thousand dollars ($10,000) and can be accepted for delivery by a common carrier, the property will be shipped to the claimant owner at the address listed on the claim.

2. If the property is valued at ten thousand dollars ($10,000) or more, the claimant must arrange with a common carrier to pick up the property during normal business hours at the Department’s office in Tallahassee, Florida. All claimant communications with the Department regarding how the property is to be delivered must be in writing. Upon request, the Department will provide the claimant with the appraised shipping value.

3.b. If the property is valued at ten thousand dollars ($10,000) or more, or the property cannot be accepted for delivery by a common carrier, the Department will advise the claimant of the award by letter, and make the property available for pickup during normal business hours at the Department’s offices in Tallahassee, Florida.

a.(I) The claimant must produce the award letter and a personal picture identification in order to pickupclaim the property at the Department’s Tallahassee address.

b.(II) Receipt of the property must be acknowledged in writing by the person receiving the property.

c.(III) If the property is not collected at the Department’s Tallahassee office within ninety (90) days of the claim approvaldate on the award letter, it may be offered for sale at the next auction and the proceeds delivered the same as cash in paragraph (8)(a) (10)(a), above.

c. If the property is valued at ten thousand dollars ($10,000) or more, the claimant must arrange with a common carrier to pick up the property during normal business hours at the Department’s office in Tallahassee, Florida. All claimant’s communications with the Department regarding how the property is to be delivered to the claimant must be in writing. Upon request, the Department will provide the claimant with the appraised shipping value.

(b) Payment and Delivery of Claims filed by Claimant’s Representative.

1. Cash – Payment of cash will be made to claimants by warrant, net of the Claimant’s Representative’s fees, and mailed to the claimant. Payment of fees to Claimant’s Representatives will be made electronically at least twice a month provided a completed Form DFS-AA-26E (www.myfloridacfo.com/division/AA/Forms/DFS-A1-26E.pdf), incorporated by reference in Rule 69G-22.002, F.A.C., is provided.

2. Securities – The Department will liquidate all securities that can be sold as soon as practicable, unless the security cannot be sold due to market conditions. Payment will be provided as follows:

a. If the securities have been liquidated, payment of the cash proceeds will be made as set forth in subparagraph (10)(b)1., above.

b. For securities that cannot be sold due to market conditions and can be certificated, the Department will request, in writing, that a certificate be issued for the number shares due the claimant, and registered in the name of the claimant, unless the claimant requests, in writing with notice to the Claimant’s Representative, the Department electronically transfer the shares to a brokerage, mutual fund or other securities type account and the information required by the securities industry to make the transfer is provided by the claimant.

c. If the security can be certificated and delivery of the certificate is requested, in writing, by the claimant and the Claimant’s Representative, the security will be registered in the claimant’s name and the certificate will be mailed to the Claimant’s Representative with notice to the claimant.

d. For securities that cannot be sold due to market conditions and can not be certificated, the Department will make an attempt to electronically transfer the securities to the claimant’s brokerage, mutual fund, or other securities type account, if the information required by the securities industry is provided at the time the claim is filed. Such information could include the broker’s or agent’s DTC number (Depository Trust Corporation), ABA number (American Banker Association), the claimant’s account number and account registration. If such information is not available at the time the claim is to be paid, written notice will be provided to the Claimant’s Representative, who must provide the information. The security for which such information is required will not be paid until the information is provided. When the security is paid, the owner and the Claimant’s Representative will receive written notice of the transfer.

e. Securities that cannot be sold, electronically transferred, or certificated will not be paid. Written notice will be provided to the claimant and the Claimant’s Representative.

f. All securities will be registered according to industry standards.

Rulemaking Authority 717.124, 717.135, 717.138 FS. Law Implemented 92.525, 668.50, 717.1201, 717.124, 717.12403, 717.12404, 717.12405, 717.1242, 717.1243, 717.125, 717.126, 717.1261, 717.1262, 717.135, 717.138 FS. History–New 3-20-91, Amended 3-13-96, 3-18-96, 1-18-99, 1-5-00, 4-16-02, Formerly 3D-20.0021, Amended 1-3-05, 6-17-15, 4-20-16, Formerly 69I-20.0021, Amended 9-29-22, _________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Phillip Carlton, Assistant Director, Division of Unclaimed Property

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Jimmy Patronis, Chief Financial Officer

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: September 12, 2023

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: April 13, 2023