HOUSE BILL 178

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Anna M. Crook

FOR THE REVENUE STABILIZATION AND TAX POLICY COMMITTEE

AN ACT

RELATING TO TAXATION; AMENDING THE UNIFORM UNCLAIMED PROPERTY ACT TO CAP RECOVERY FEES.

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

     Section 1. Section 7-8A-25 NMSA 1978 (being Laws 1997, Chapter 25, Section 25, as amended) 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, provides for a fee of not more than ten percent of the value of the property recovered, 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] that 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 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2009.

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