S*0741(Rat #0227, Act #0197 of 2008)  General Bill, By Courson
 A BILL TO AMEND CHAPTER 18, TITLE 27 OF THE 1976 CODE, RELATING TO THE UNIFORM
 UNCLAIMED PROPERTY ACT, TO REDUCE THE DORMANCY PERIOD FOR SECURITIES FROM
 SEVEN YEARS TO THREE YEARS, TO UPDATE A REFERENCE, AND TO ELIMINATE THE
 REQUIREMENT OF A CIVIL PENALTY FOR A PERSON WHO FAILS TO RENDER A REPORT,
 PERFORM A DUTY, OR DELIVER PROPERTY AS REQUIRED PURSUANT TO THIS CHAPTER.

   05/08/07  Senate Introduced and read first time SJ-4
   05/08/07  Senate Referred to Committee on Judiciary SJ-4
   05/14/07  Senate Referred to Subcommittee: Martin (ch), Malloy,
                     Campsen, Williams
   01/30/08  Senate Committee report: Favorable with amendment
                     Judiciary SJ-12
   01/31/08         Scrivener's error corrected
   02/05/08  Senate Committee Amendment Adopted SJ-29
   02/05/08  Senate Read second time SJ-29
   02/06/08  Senate Read third time and sent to House SJ-24
   02/07/08  House  Introduced and read first time HJ-20
   02/07/08  House  Referred to Committee on Judiciary HJ-20
   03/26/08  House  Committee report: Favorable Judiciary HJ-4
   03/27/08  House  Read second time HJ-26
   03/27/08  House  Unanimous consent for third reading on next
                     legislative day HJ-27
   03/27/08         Scrivener's error corrected
   03/28/08  House  Read third time and enrolled HJ-2
   04/10/08         Ratified R 227
   04/15/08         Signed By Governor
   04/21/08         Copies available
   04/21/08         Effective date 04/15/08
   04/21/08         Act No. 197

(A197, R227, S741)

AN ACT TO AMEND SECTION 27-18-110, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO STOCKS AND OTHER INTANGIBLE OWNERSHIP INTERESTS IN A BUSINESS ASSOCIATION EVIDENCED BY RECORDS AVAILABLE TO THE ASSOCIATION, SO AS TO REDUCE THE DORMANCY PERIOD FOR STOCK OR OTHER EQUITY INTERESTS IN THE ASSOCIATION FROM SEVEN TO THREE YEARS, AND TO CHANGE THE CRITERIA FOR CALCULATING WHETHER A STOCK OR SECURITY INTEREST IS UNCLAIMED; TO AMEND SECTION 27-18-250, RELATING TO THE PROCEDURE FOR PROCESSING CLAIMS TO PROPERTY PAID OR DELIVERED TO THE STATE TREASURER AND THE METHOD FOR RECOVERY OF INTEREST ON PROPERTY, SO AS TO CORRECT AN ARCHAIC REFERENCE; AND TO AMEND SECTION 27-18-350, RELATING TO INTEREST AND PENALTIES FOR VIOLATION OF CHAPTER 18, TITLE 27, SO AS TO REVISE THE CIVIL PENALTY FOR A PERSON WHO FAILS TO FILE A REPORT OR PERFORM OTHER DUTIES PURSUANT TO THIS CHAPTER.

Be it enacted by the General Assembly of the State of South Carolina:

Dormancy period shortened

SECTION    1.    Section 27-18-110 of the 1976 Code is amended to read:

"Section 27-18-110.    (A)    Stock or other equity interest in a business association is presumed unclaimed three years after the earliest of:

(1)    the date of the most recent dividend, stock split, or other distribution unclaimed by the apparent owner;

(2)    the date of a statement of account or other notification or communication that was returned as undeliverable; or

(3)    the date the holder discontinued mailings, notifications, or communications to the apparent owner.

(B)    Unmatured or unredeemed debt, other than a bearer bond or an original-issue discount bond, is presumed unclaimed three years after the date of the most recent interest payment unclaimed by the owner.

(C)    Matured or redeemed debt is presumed unclaimed three years after the date of maturity or redemption.

(D)    At the time property is presumed unclaimed pursuant to subsection (A) or (B), any other property right accrued or accruing to the owner as a result of the property interest and not previously presumed unclaimed is also presumed unclaimed.

(E)    The running of the three-year period ceases if the person:

(1)(a)    communicates in writing with the association or its agent regarding the interest or a dividend, distribution, or other sum payable as a result of the interest; or

(b)    otherwise communicates with the association regarding the interest or a dividend, distribution, or other sum payable as a result of the interest, as evidenced by a memorandum or other record on file with the association or its agent; or

(2)    presents an instrument issued to pay interest or a dividend or other cash distribution. If a future dividend, distribution, or other sum payable to the owner as a result of the interest is subsequently not claimed by the owner, a new period in which the property is presumed unclaimed commences and relates back only to the time a subsequent dividend, distribution, or other sum became due and payable.

(F)    At the same time any interest is presumed unclaimed under this section, a dividend, distribution, or other sum then held for or owing to the owner as a result of the interest, is presumed unclaimed."

Reference corrected

SECTION    2.    Section 27-18-250(C) of the 1976 Code is amended to read:

"(C)    If a claim is allowed, the administrator shall pay over or deliver to the claimant the property or the amount the administrator actually received or the net proceeds if it has been sold by the administrator together with any additional amount required by Section 27-18-220. If the claim is for property presumed abandoned under Section 27-18-110 which was sold by the administrator within three years after the date of delivery, the amount payable for that claim is the value of the property at the time the claim was made or the net proceeds of sale, whichever is greater. If the property claimed was interest-bearing to the owner on the date of surrender by the holder, the administrator also shall pay interest at a rate provided in Section 12-54-25 or any lesser rate the property earned while in the possession of the holder. Interest begins to accrue when the property is delivered to the administrator and ceases on the earlier of the expiration of ten years after delivery or the date on which payment is made to the owner. No interest on interest-bearing property is payable for any period before the effective date of this chapter."

Penalty

SECTION    3.    Section 27-18-350(B) and (C) of the 1976 Code are amended to read:

"(B)    A person who fails to render any report or perform other duties required pursuant to this chapter may be required to pay a civil penalty of one hundred dollars for each day the report is withheld or the duty is not performed, but not more than five thousand dollars.

(C)    A person who fails to pay or deliver property to the administrator as required pursuant to this chapter may be required to pay a civil penalty equal to twenty-five percent of the value of the property that should have been paid or delivered."

Time effective

SECTION    4.    This act takes effect upon approval by the Governor.

Ratified the 10th day of April, 2008.

Approved the 15th day of April, 2008.