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AN ACT

RELATING TO PROPERTY; CREATING ELECTRONIC REPORTING

REQUIREMENTS FOR CERTAIN HOLDERS OF PROPERTIES PRESUMED

ABANDONED; PERMITTING THE TAXATION AND REVENUE DEPARTMENT TO

SELL BY REASONABLE METHOD PROPERTIES PRESUMED ABANDONED;

EXTENDING THE TIME PERIOD DURING WHICH AN AGREEMENT TO RECOVER

PROPERTY IS INVALID; MAKING A CORRECTION TO THE SCOPE OF THE

UNIFORM UNCLAIMED PROPERTY ACT (1995).

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 7-8A-7 NMSA 1978 (being Laws 1997,

Chapter 25, Section 7) is amended to read:

"7-8A-7. REPORT OF ABANDONED PROPERTY.--

A. A holder of property presumed abandoned shall

make a report to the administrator concerning the property.

B. The report must be verified and must contain:

(1) a description of the property;

(2) except with respect to a traveler's

check or money order, the name, if known, and last known

address, if any, and the social security number or taxpayer

identification number, if readily ascertainable, of the

apparent owner of property of the value of fifty dollars

($50.00) or more;

(3) an aggregated amount of items valued

under fifty dollars ($50.00) each;

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(4) in the case of an amount of fifty

dollars ($50.00) or more held or owing under an annuity or a

life or endowment insurance policy, the full name and last

known address of the annuitant or insured and of the

beneficiary;

(5) in the case of property held in a safe

deposit box or other safekeeping depository, an indication of

the place where it is held and where it may be inspected by

the administrator and any amounts owing to the holder;

(6) the date, if any, on which the property

became payable, demandable or returnable and the date of the

last transaction with the apparent owner with respect to the

property; and

(7) other information that the administrator

by rule prescribes as necessary for the administration of the

Uniform Unclaimed Property Act (1995).

C. If a holder of property presumed abandoned is a

successor to another person who previously held the property

for the apparent owner or the holder has changed its name

while holding the property, the holder shall file with the

report its former names, if any, and the known names and

addresses of all previous holders of the property.

D. The report must be filed before November 1 of

each year and cover the twelve months next preceding July 1 of

that year, but a report with respect to a life insurance

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company must be filed before May 1 of each year for the

calendar year next preceding.

E. A holder of more than twenty-five properties

presumed abandoned shall report the properties in an

electronic media and in a format determined by the

administrator to be compatible with computer programming and

equipment used by the administrator for processing.

F. The holder of property presumed abandoned shall

send written notice to the apparent owner, not more than one

hundred twenty days or less than sixty days before filing the

report, stating that the holder is in possession of property

subject to the Uniform Unclaimed Property Act (1995), if:

(1) the holder has in its records an address

for the apparent owner which the holder's records do not

disclose to be inaccurate;

(2) the claim of the apparent owner is not

barred by a statute of limitations; and

(3) the value of the property is fifty

dollars ($50.00) or more.

G. Before the date for filing the report, the

holder of property presumed abandoned may request the

administrator to extend the time for filing the report. The

administrator may grant the extension for good cause. The

holder, upon receipt of the extension, may make an interim

payment on the amount the holder estimates will ultimately be

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due, which terminates the accrual of additional interest on

the amount paid.

H. The holder of property presumed abandoned shall

file with the report an affidavit stating that the holder has

complied with Subsection F of this section."

Section 2. Section 7-8A-12 NMSA 1978 (being Laws 1997,

Chapter 25, Section 12) is amended to read:

"7-8A-12. PUBLIC SALE OF ABANDONED PROPERTY.--

A. Except as otherwise provided in this section,

the administrator, within three years after the receipt of

abandoned property, shall sell it to the highest bidder at

public sale at a location in this state or by any reasonable

method, which in the judgment of the administrator affords the

most favorable market for the property. The administrator may

decline the highest bid and re-offer the property for sale if

the administrator considers the bid to be insufficient. The

administrator need not offer the property for sale if the

administrator considers that the probable cost of sale will

exceed the proceeds of the sale. A sale held under this

section must be preceded by a single publication of notice, at

least three weeks before sale, in a newspaper of general

circulation in the county in which the property is to be sold.

B. Securities listed on an established stock

exchange must be sold at prices prevailing on the exchange at

the time of sale. Other securities may be sold over the

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counter at prices prevailing at the time of sale or by any

reasonable method selected by the administrator. If

securities are sold by the administrator before the expiration

of three years after their delivery to the administrator, a

person making a claim under the Uniform Unclaimed Property Act

(1995) before the end of the three-year period is entitled to

the proceeds of the sale of the securities or the market value

of the securities at the time the claim is made, whichever is

greater, plus dividends, interest and other increments thereon

up to the time the claim is made, less any deduction for

expenses of sale. A person making a claim under the Uniform

Unclaimed Property Act (1995) after the expiration of the

three-year period is entitled to receive the securities

delivered to the administrator by the holder, if they still

remain in the custody of the administrator, or the net

proceeds received from sale and is not entitled to receive any

appreciation in the value of the property occurring after

delivery to the administrator except in a case of intentional

misconduct or malfeasance by the administrator.

C. A purchaser of property at a sale conducted by

the administrator pursuant to the Uniform Unclaimed Property

Act (1995) takes the property free of all claims of the owner

or previous holder and of all persons claiming through or

under them. The administrator shall execute all documents

necessary to complete the transfer of ownership."

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Section 3. Section 7-8A-25 NMSA 1978 (being Laws 1997,

Chapter 25, Section 25) is amended to read:

"7-8A-25. AGREEMENT TO LOCATE PROPERTY.--

A. An agreement by an owner, the primary purpose

of which is to locate, deliver, recover or assist in the

recovery of property that is presumed abandoned, is void and

unenforceable if it was entered into during the period

commencing on the date the property was presumed abandoned and

extending to a time that is forty-eight months after the date

the property is paid or delivered to the administrator. This

subsection does not apply to an owner's agreement with an

attorney to file a claim as to identified property or contest

the administrator's denial of a claim.

B. An agreement by an owner, the primary purpose

of which is to locate, deliver, recover or assist in the

recovery of property, is enforceable only if the agreement is

in writing, clearly sets forth the nature of the property and

the services to be rendered, is signed by the apparent owner

and states the value of the property before and after the fee

or other compensation has been deducted.

C. If an agreement covered by this section applies

to mineral proceeds and the agreement contains a provision to

pay compensation that includes a portion of the underlying

minerals or any mineral proceeds not then presumed abandoned,

the provision is void and unenforceable.

D. An agreement covered by this section which

provides for compensation that is unconscionable is

unenforceable except by the owner. An owner who has agreed to

pay compensation that is unconscionable or the administrator

on behalf of the owner may maintain an action to reduce the

compensation to a conscionable amount. The court may award

reasonable attorney fees to an owner who prevails in the

action.

E. This section does not preclude an owner from

asserting that an agreement covered by this section is invalid

on grounds other than unconscionable compensation."

Section 4. Section 7-8A-30 NMSA 1978 (being Laws 1997,

Chapter 25, Section 30) is amended to read:

"7-8A-30. SHORT TITLE.--Chapter 7, Article 8A NMSA 1978

may be cited as the "Uniform Unclaimed Property Act (1995)"."

Section 5. EFFECTIVE DATE.--The effective date of the

provisions of this act is July 1, 2006. HB 386

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