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General Assembly Substitute Bill No. 1434
January Session, 2025
AN ACT IMPLEMENTING THE TREASURER'S RECOMMENDATIONS
FOR REVISIONS CONCERNING UNCLAIMED PROPERTY.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 3-56a of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective July 1, 2025): 2
As used in this part and section 2 of this act, unless the context 3
otherwise requires: 4
(1) "Apparent owner" means the person whose name appears on the 5
records of the holder as the person entitled to the property held, issued 6
or owing by the holder; 7
(2) "Banking organization" means any state bank and trust company, 8
national banking association or savings bank engaged in business in this 9
state; 10
(3) "Business association" means a corporation, joint stock company, 11
partnership, unincorporated association, joint venture, limited liability 12
company, business trust, trust company, safe deposit company, 13
financial organization, insurance company, person engaged in the 14
business of operating or controlling a mutual fund, utility or other 15
business entity consisting of one or more persons, whether or not for 16
profit; 17 Substitute Bill No. 1434
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(4) "Financial organization" means any savings and loan association, 18
credit union or investment company; 19
(5) "Funeral service contract" has the same meaning as provided in 20
section 42-200; 21
[(5)] (6) "Gift certificate" means a record evidencing a promise, made 22
for consideration, by the seller or issuer of the record that goods or 23
services will be provided to the owner of the record to the value shown 24
in the record and includes, but is not limited to, a record that contains a 25
microprocessor chip, magnetic stripe or other means for the storage of 26
information that is prefunded and for which the value is decremented 27
upon each use, a gift card, an electronic gift card, stored-value card or 28
certificate, a store card, or a similar record or card, but "gift certificate" 29
does not include prepaid calling cards regulated under section 42-370, 30
prepaid commercial mobile radio services, as defined in 47 CFR 20.3 or 31
general-use prepaid cards, as defined in section 42-460a; 32
[(6)] (7) "Holder" means any person in possession of property subject 33
to this part which belongs to another, or who is trustee in case of a trust, 34
or who is indebted to another on an obligation subject to this part; 35
[(7)] (8) "Insurance company" means an association, corporation or 36
fraternal or mutual benefit organization, whether or not for profit, 37
engaged in the business of providing life endowments, annuities or 38
insurance, including accident, burial, casualty, credit life, contract 39
performance, dental, disability, fidelity, fire, health, hospitalization, 40
illness, life, malpractice, marine, mortgage, surety, wage protection and 41
workers' compensation insurance; 42
[(8)] (9) "Last-known address" means [a description of the location of 43
the apparent owner sufficient for the purpose of delivery of mail] any 44
description, code or other indication of the location of the apparent 45
owner that identifies the state, even if such description, code or 46
indication is insufficient for the purpose of the delivery of first-class 47
United States mail to the apparent owner; 48 Substitute Bill No. 1434
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[(9)] (10) "Mineral" means gas; oil; other gaseous, liquid [,] and solid 49
hydrocarbons; oil shale; cement material; sand and gravel; road 50
material; building stone; chemical raw material; gemstone; fissionable 51
and nonfissionable ores; colloidal and other clay; steam and other 52
geothermal resource; or any other substance defined as a mineral by the 53
law of this state; 54
[(10)] (11) "Mineral proceeds" means amounts payable for the 55
extraction, production or sale of minerals, or, upon the abandonment of 56
those payments, all payments that become payable thereafter, and 57
"mineral proceeds" includes amounts payable: (A) For the acquisition 58
and retention of a mineral lease, including bonuses, royalties, 59
compensatory royalties, shut-in royalties, minimum royalties and delay 60
rentals; (B) for the extraction, production or sale of minerals, including 61
net revenue interests, royalties, overriding royalties, extraction 62
payments and production payments; and (C) under an agreement or 63
option, including a joint operating agreement, unit agreement, pooling 64
agreement and farm-out agreement; 65
[(11)] (12) "Owner" means a depositor in case of a deposit, a 66
beneficiary in case of a trust, a creditor, claimant or payee in case of other 67
choses in action, or any person having a legal or equitable interest in 68
property subject to this part, or such person's legal representative; 69
[(12)] (13) "Person" means any individual, business association, 70
estate, trust, government, governmental subdivision, agency or 71
instrumentality, or any other legal or commercial entity; 72
[(13)] (14) "Property" means realty or personalty, tangible or 73
intangible, and includes, but is not limited to, virtual currency; 74
[(14)] (15) "Record" means information that is inscribed on a tangible 75
medium or that is stored in an electronic or other medium and is 76
retrievable in perceivable form; 77
[(15)] (16) "Treasurer" means the Treasurer of the state of Connecticut; 78 Substitute Bill No. 1434
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[(16)] (17) "Utility" means a person who owns or operates for public 79
use any plant, equipment, real property, franchise or license for the 80
transmission of communications or the production, storage, 81
transmission, sale, delivery or furnishing of electricity, water, steam or 82
gas; and 83
[(17)] (18) "Virtual currency" has the same meaning as provided in 84
section 36a-596. 85
Sec. 2. (NEW) (Effective July 1, 2025) (a) Any property held pursuant 86
to a funeral service contract that is in effect on or after July 1, 2025, for 87
the purposes of part III of chapter 32 of the general statutes, shall be 88
considered payable or distributable on the earliest of: (1) When the 89
holder has received notification of the death of the beneficiary and the 90
funeral services contracted for pursuant to such funeral service contract 91
have not been provided; (2) the date the beneficiary would have attained 92
the age of one hundred ten years; or (3) seventy-five years after the 93
funeral service contract was executed. 94
(b) Any property held pursuant to a funeral service contract shall be 95
presumed abandoned unless the beneficiary or purchaser has indicated 96
an interest in such property not later than one year after such property 97
becomes payable or distributable pursuant to subsection (a) of this 98
section. If the annual statements that are required to be sent under 99
section 42-202 of the general statutes were returned as undeliverable 100
during the preceding year, the holder shall, for purposes of providing 101
notice to the owner pursuant to section 3-65a of the general statutes, as 102
amended by this act, make reasonable efforts to determine a current and 103
proper mailing address for the owner. 104
(c) Not later than March first of each year, the holder shall obtain from 105
the funeral service establishment a list of all properties held pursuant to 106
a funeral service contract that became payable or distributable pursuant 107
to subsection (a) of this section during the preceding calendar year. 108
(d) For purposes of part III of chapter 32 of the general statutes, the 109
escrow agent, insurance company or any other person holding or 110 Substitute Bill No. 1434
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maintaining such property shall be deemed the holder, and the 111
purchaser of such property shall be deemed the owner. 112
Sec. 3. Section 3-65a of the general statutes is repealed and the 113
following is substituted in lieu thereof (Effective July 1, 2025): 114
(a) [Not less than one hundred eighty days before] Between July first 115
and September thirtieth, inclusive, of the calendar year in which a 116
presumption of abandonment is to take effect, [in respect to property 117
subject to section 3-60b or 3-60c and within one year before a 118
presumption of abandonment is to take effect in respect to all other 119
property subject to this part, and] if the owner's claim is not barred by 120
law, the holder shall notify the owner thereof and take reasonable steps 121
to prevent abandonment from being presumed. Such notice shall be 122
provided, at a minimum, by [sending such notice by first class] (1) first-123
class mail directed to the owner's last-known address, [and,] if such 124
address is sufficient for the purpose of the delivery of first-class United 125
States mail and the cumulative value of all property belonging to the 126
owner is fifty dollars or greater, and (2) electronic mail directed to the 127
owner's last-known electronic mail address, regardless of the value of 128
the property, if a holder has received an owner's consent for the 129
electronic delivery of any notices that are required by law. [, by 130
electronic mail directed to the owner's last-known electronic mail 131
address,] Such notice shall inform the owner that evidence of interest 132
must be indicated as required by this part or such property will be 133
transferred to the Treasurer and will be subject to escheat to the state. If 134
the property presumed abandoned is a security, virtual currency or 135
tangible property from a safe deposit box, the holder's notice shall 136
indicate that such property may be liquidated either prior to or 137
following its reporting to the Treasurer and that after such liquidation 138
will be limited to the proceeds of such liquidation. Nothing in this 139
subsection shall be construed to require an owner to consent to the 140
electronic delivery of notices for communications regarding unclaimed 141
property. 142
(b) Not later than [ninety days after] March thirty-first following the 143 Substitute Bill No. 1434
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close of the calendar year in which property is presumed abandoned, 144
the holder shall pay or deliver such property to the Treasurer and file, 145
on forms that the Treasurer shall provide, a report of unclaimed 146
property. Each report shall be verified and shall include: (1) The name, 147
if known, last-known physical and electronic mail address, if any, and 148
last-known telephone number, if any, of each person appearing to be the 149
owner of such property; (2) in case of unclaimed funds of an insurance 150
company, the full name of the insured or annuitant and beneficiary and 151
his or her last-known address appearing on the insurance company's 152
records; (3) the nature and identifying number, if any, or description of 153
the property and the amount appearing from the records to be due; (4) 154
the date when the property became payable, demandable or returnable 155
and the date of the last transaction with the owner with respect to the 156
property; (5) if the holder is a successor to other holders, or if the holder 157
has changed the holder's name, all prior known names and addresses of 158
each holder of the property; and (6) such other information as the 159
Treasurer may require. 160
(c) Verification, if made by a partnership, shall be executed by a 161
partner; if made by an unincorporated association or private 162
corporation, by an officer; and if made by a public corporation, by its 163
chief fiscal officer. 164
(d) (1) The Treasurer shall keep a permanent record of all reports 165
submitted to the Treasurer pursuant to this section. 166
(2) A holder shall retain the following records for at least ten years 167
after the date any report was filed under this section or the last date a 168
timely report was due to be filed, unless a shorter retention period is 169
provided by the Treasurer: (A) The information required to be included 170
in the report, (B) the date, place and nature of the circumstances that 171
gave rise to the property right, and (C) any documentation concerning 172
items considered for reporting that were not ultimately determined to 173
represent unclaimed property, for verification of whether the holder has 174
complied with its reporting obligation under this section. 175 Substitute Bill No. 1434
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(e) Except for claims paid under section 3-67a and except as provided 176
in subsection (e) of section 3-70a, no owner shall be entitled to any 177
interest, income or other increment which may accrue to property 178
presumed abandoned from and after the date of payment or delivery to 179
the Treasurer. 180
(f) The Treasurer may decline to receive any property the value of 181
which is less than the cost of giving notice or holding sale, or may 182
postpone taking possession until a sufficient sum accumulates. 183
(g) The Treasurer, or any officer or agency designated by the 184
Treasurer, may examine any person on oath or affirmation, or the 185
records of any person or any agent of the person including, but not 186
limited to, a dividend disbursement agent or transfer agent of a business 187
association, banking organization or insurance company that is the 188
holder of property presumed abandoned to determine whether the 189
person or agent has complied with this part. The Treasurer may conduct 190
the examination even if the person or agent believes the person or agent 191
is not in possession of any property that must be paid, delivered or 192
reported under this part. The Treasurer may bring an action in a court 193
of appropriate jurisdiction to enforce the provisions of this part. 194
(h) A record of the issuance of a check, draft or similar instrument is 195
prima facie evidence of the obligation represented by the check, draft or 196
similar instrument. In claiming property from a holder who is also the 197
issuer, the Treasurer's burden of proof as to the existence and amount 198
of the property and its abandonment is satisfied by showing issuance of 199
the instrument and passage of the requisite period of abandonment. 200
Defenses of payment, satisfaction, discharge and want of consideration 201
are affirmative defenses that shall be established by the holder. 202
(i) Notwithstanding the provisions of subsection (b) of this section, 203
the holder of personal property presumed abandoned pursuant to 204
subdivision (5) of subsection (a) of section 3-57a or section 3-57b shall 205
(1) sell such property and pay the proceeds arising from such sale, 206
excluding any charges that may lawfully be withheld, to the Treasurer, 207 Substitute Bill No. 1434
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unless such property consists of military medals, in which case such 208
property shall not be sold, and (2) provide the Treasurer with records 209
deemed appropriate by the Treasurer of property so presumed 210
abandoned. The holder shall complete the sale of such property and 211
deliver the net proceeds to the Treasurer not later than thirty days after 212
filing the report required under subsection (b) of this section. A holder 213
of tangible, personal property may contract with a third party to store 214
and sell such property and to pay the proceeds arising from such sale, 215
excluding any charges that may be lawfully withheld, to the Treasurer, 216
provided the third party holds a surety bond or other form of insurance 217
coverage with respect to such activities. Any holder who sells property 218
pursuant to subsection (a) of section 3-57a or section 3-57b and remits 219
the excess proceeds to the Treasurer or who transmits tangible, personal 220
property to a bonded or insured third party for such purposes, shall not 221
be responsible for any claims related to the sale or transmission of the 222
property or proceeds to the Treasurer. If the Treasurer exempts any such 223
property from being remitted or sold pursuant to this subsection, 224
whether by regulations or guidelines, the holder of such property may 225
dispose of such property in any manner such holder deems appropriate 226
and such holder shall not be responsible for any claims related to the 227
disposition of such property or any claims to the property itself. For 228
purposes of the sale of personal property presumed abandoned under 229
subdivision (5) of subsection (a) of section 3-57a or section 3-57b, charges 230
that may lawfully be withheld include costs of storage, appraisal, 231
advertising and sales commissions as well as lawful charges owing 232
under the contract governing the safe deposit box rental. 233
(j) In the event military medals are presumed abandoned pursuant to 234
subdivision (5) of subsection (a) of section 3-57a, a banking or financial 235
organization shall transmit such medals to the Department of Veterans 236
Affairs in accordance with procedures established by the Treasurer. The 237
Treasurer and Commissioner of Veterans Affairs shall enter into a 238
memorandum of understanding concerning the handling of such 239
medals and the Department of Veterans Affairs shall hold such medals 240
in custody pursuant to such memorandum. The Treasurer may make 241 Substitute Bill No. 1434
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any information obtained pursuant to this section, including any 242
photograph or other visual depiction of a military medal but excluding 243
Social Security numbers, available to the public to facilitate the 244
identification of the original owner of such medal or such owner's heirs 245
or beneficiaries. 246
Sec. 4. Section 3-70a of the general statutes is amended by adding 247
subsections (h) and (i) as follows (Effective July 1, 2025): 248
(NEW) (h) Notwithstanding the provisions of subsection (a) of this 249
section, where the sole owner of the abandoned property is reported as 250
the office of the Secretary of the State, State Comptroller, Attorney 251
General or State Treasurer or a department within the executive branch, 252
as listed in section 4-38c, the Treasurer may submit a report to the Office 253
of Policy and Management identifying the value of each property 254
escheated and the applicable office or department that is the reported 255
owner. Unless the Office of Policy and Management directs otherwise, 256
the property shall escheat to the state, in accordance with this part, three 257
months following the submission of such report and the Treasurer shall 258
reclassify such property as property of the state instead of unclaimed 259
property. 260
(NEW) (i) The Treasurer may establish a program that permits the 261
owner of a claim allowed under this section for property, funds or 262
money to donate such claim in its entirety to a charitable cause. The 263
Treasurer shall select one or more of the following to be the recipient of 264
donated payments under this subsection: (1) The organ transplant 265
account established in section 17b-288, (2) the AIDS research education 266
account established in section 19a-32a, (3) the endangered species, 267
natural area preserves and watchable wildlife account established in 268
section 22a-27l, (4) the breast cancer research and education account 269
established in section 19a-32b, (5) the safety net services account 270
established in section 17b-112f, (6) the Connecticut Baby Bond Trust 271
established in section 3-36b, (7) the mental health community 272
investment account established in section 17a-451g, or (8) the Military 273
Relief Fund established in section 27-100a. An owner's election to donate 274 Substitute Bill No. 1434
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an allowed claim payment shall be irrevocable and remittance of the 275
donation shall be considered full payment of the allowed claim. The 276
Treasurer shall prescribe the form that such donation election shall take. 277
Sec. 5. Subsection (c) of section 3-66a of the general statutes is 278
repealed and the following is substituted in lieu thereof (Effective July 1, 279
2025): 280
(c) [The] For properties with a reported value of fifty dollars or more, 281
the Treasurer shall [notify] send a notice, in a manner deemed 282
appropriate by the Treasurer, to each person, other than an individual 283
to whom the Treasurer makes or will make a payment pursuant to 284
subsection (f) of section 3-70a, reported as the apparent owner of 285
unclaimed property that was reported or transferred to the Treasurer 286
during the preceding calendar year and for whom the holder of such 287
property has reported a last-known address [,] in this state sufficient to 288
direct the delivery of first-class United States mail or valid electronic 289
mail address [or telephone number] to the Treasurer. Such notice shall 290
[include information concerning the amount and description of such 291
property] inform the person that such person may have unclaimed 292
property available to claim and the process by which such [owner] 293
person may verify ownership to and claim such property. 294
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2025 3-56a
Sec. 2 July 1, 2025 New section
Sec. 3 July 1, 2025 3-65a
Sec. 4 July 1, 2025 3-70a(h) and (i)
Sec. 5 July 1, 2025 3-66a(c)
GAE Joint Favorable Subst.