Del. Code 12, § 1155 : Decedents' Estates And Fiduciary Relations — Escheats — Abandoned Or Unclaimed Property — Examination of records

Current through 2016 Legislative Session, Act 399

(a) The State Escheator may at reasonable times and upon reasonable notice examine the records of any person or business association or organization to determine whether the person has complied with any provision of this chapter and may by summons require the attendance of any person having knowledge in the premises, and may take testimony and require proof material for the investigation, with the power to administer oaths to such person or persons; provided, however, that the State Bank Commissioner shall act on behalf of the State Escheator with regard to examinations of banking organizations. The State Escheator is authorized to reimburse the State Bank Commissioner for the cost of examinations undertaken on the Commissioner's behalf and may pay for such reimbursement out of custodian accounts held for the State Escheator. The State Escheator may disclose such information as the Escheator possesses to the State Bank Commissioner as may aid in the Commissioner's examination of any banking organization and may disclose any information received from the State Bank Commissioner as may be required:

(1) In conjunction with enforcement proceedings; or

(2) In summary form to the extent necessary for the proper disposition of the property.

Where the records of the holder available for the periods subject to this chapter are insufficient to permit the preparation of a report, the State Escheator may require the holder to report and pay to the State the amount of abandoned or unclaimed property that should have been but was not reported that the State Escheator reasonably estimates to be due and owing on the basis of any available records of the holder or by any other reasonable method of estimation.

(b) The State Escheator may contract with a person to conduct an examination in accordance with this chapter but no such person shall be assigned more than fifty percent of the number of all such examinations undertaken subsequent to January 1, 2015. In addition, notwithstanding any other provision of this Code, every contract between the State and such persons conducting examinations and providing any unclaimed property examination or consulting services shall (i) be for a term of no more than five years and (ii) provide that no such person shall hire, retain, or compensate in any way any employee of the Delaware Division of Revenue or the Department of Finance who functions in a senior supervisory role, related to unclaimed property including without limitation, the Secretary of Finance, any Deputy Secretary of Finance, the State Escheator or Audit Manager, for a period of two years from the time such employee leaves the employ of the State.

(c) Effective July 1, 2015, the State Escheator shall not initiate any new examination of records or an investigation of any person or business association or organization pursuant to this Section unless first the person or business association or organization has been notified in writing by the Secretary of State that the person, business association, or organization may enter into an unclaimed property voluntary disclosure agreement, or if the holder fails to otherwise comply with a requirement imposed on such holder pursuant to Section 1177 of this Title.

(d) Effective from the date of enactment of this legislation, the State Escheator may seek payment as to any amounts owed pursuant to this Chapter for any pending unclaimed property examination; however, the State Escheator shall not seek payment of any amounts owed pursuant to this Chapter related to any transactions prior to January 1, 1986. Effective from the date of enactment of this legislation through December 31, 2016, the State shall not initiate any new examination of records or an investigation pursuant to § 1155 of this title for any amounts owed pursuant to this Chapter related to any transaction prior to January 1, 1991, nor seek payment of any amounts arising from such examination owed pursuant to this Chapter of this title, with respect to any transaction prior to January 1, 1991.

(e) Effective January 1, 2017, the State Escheator shall not initiate any new examination of records or an investigation pursuant to § 1155 of this title for any amounts owed pursuant to this Chapter related to any transaction more than twenty-two (22) years prior to the report year for which the State Escheator provides written notice of such examination, nor seek payment of any amounts arising from such examination owed pursuant to this Chapter of this title, with respect to any transaction that is more than twenty-two (22) years prior to the calendar year in which the State Escheator provides written notice of such examination.

Del. C. § 1155

Amended by Laws 2015, ch. 114,s 1, eff. 7/22/2015.

Amended by Laws 2015, ch. 2,s 1, eff. 1/29/2015.

67 Del. Laws, c. 267, §2; 70 Del. Laws, c. 186, § 1; 77 Del. Laws, c. 417, § 4.;