Government Administration and Elections Committee

JOINT FAVORABLE REPORT

Bill No.:

HB-5533

Title:

AN ACT CONCERNING THE TIME PERIOD FOR FUNDS TO ESCHEAT TO THE STATE.

Vote Date:

Vote Action:

PH Date:

3/11/2016

File No.:

SPONSORS OF BILL:

Judiciary Committee

Rep. Candelora, 8th Dist.

REASONS FOR BILL:

Rep. Candelora brought this to the attention of the Judiciary Committee.

Section 3-57a of the general statues amends the time frame after funds are deemed

escheated from three to seven years.

RESPONSE FROM ADMINISTRATION/AGENCY:

Assistant Deputy Treasurer for Unclaimed Property and the Second Injury Fund in the Office of the State Treasurer, Ms. Maria Greenslade: Ms.Greenslade opposes this bill. Changing the dormancy period to seven years will require bank accounts to remain dormant for an additional four years before a presumption of abandonment. The General Fund will see a reduction in revenue of approximately $84 million over the next four years. In addition, the consumer will wait seven years before their name is added to the CT Big List. Increasing the dormancy period to seven years would give banks the ability to charge inactive fees up to eighty four months, potentially depleting the account.

NATURE AND SOURCES OF SUPPORT:

Rep. Candelora, 8th District: Rep. Candelora co-sponsored this bill. He urged the committee to consider extending the period of time which funds are deemed escheated.

The Credit Union League of Connecticut, Ms. Kelly Ramsey Fuhlbrigge, VP Government Relations: Ms. Ramsey stated that an extension would provide an opportunity for credit union members and their heirs, served by credit unions, to maintain ownership of their money and property. Further, an extension would not create an undue hardship for the financial institution.

NATURE AND SOURCES OF OPPOSITION:

None Expressed

Reported by: Maureen O'Reilly

Date: April 11, 2016