AN ACT TO PROVIDE THAT UNCLAIMED UNITED STATES SAVINGS BONDS SHALL ESCHEAT TO THE STATE, TO DIRECT THE TREASURER TO REDEEM THOSE UNITED STATES SAVINGS BONDS ESCHEATED TO THE STATE, TO CREATE AN ESCHEAT SAVINGS BOND TRUST FUND WITHIN THE ESCHEAT FUND FOR DEPOSIT OF THE PROCEEDS OF THOSE REDEMPTIONS, AND TO PROVIDE THAT INTEREST AND INVESTMENT EARNINGS FROM THE ESCHEAT SAVINGS BOND TRUST FUND SHALL BE USED TO FUND SCHOLARSHIPS TO WORTHY AND NEEDY STUDENTS WHO ARE RESIDENTS OF NORTH CAROLINA AND ARE ENROLLED IN PUBLIC INSTITUTIONS OF HIGHER EDUCATION IN NORTH CAROLINA. Enacted August 1, 2014. Effective August 1, 2014.
Summary date: Aug 1 2014 - View summary
Summary date: Jul 22 2014 - View summary
Senate committee substitute makes the following changes to the 3rd edition:
Changes the short and long titles.
Deletes all of the provisions of the previous edition in their entirety.
Enacts GS 116B-54A, concerning unclaimed US savings bonds, providing for all abandoned US savings bonds (bond) to escheat to the state of North Carolina three years after they have matured. A bond is deemed to be abandoned if it is not redeemed within three years after the bond has fully matured. Creates a judicial process by which the NC Treasurer can bring a civil action to take all property rights and legal title of the bond or proceeds. Specifies process and procedures for carrying out a civil action to claim right to the bonds, including requiring the Treasurer to make sufficient efforts to locate the owner of the savings bond before bringing a civil action. Provides that the court must enter a judgment that the bond has escheated to North Carolina if the following three conditions are met: (1) no person has filed a claim or appears at the hearing to substantiate a claim, (2) the court determines that a person who has filed a claim or who has appeared is not entitled to the property, and (3) the court is satisfied by the evidence that the Treasurer has substantially complied with the laws of North Carolina.
Provides that a person claiming ownership over a bond that has been escheated to North Carolina and redeemed by North Carolina can file a claim for the bond and after a showing of sufficient proof of validity of the claim the Treasurer can pay the claim.
Requires the Treasurer to take steps to redeem any bond that has escheated to NC, with the proceeds being deposited in the Escheat Savings Bond Trust Fund.
Creates the Escheat Savings Bond Trust Fund as a separately accounted fund within the Escheat Fund. The balance of the fund can only be spent for purposes of investment and to pay funds to potential claimants. Any interest and investment earnings of the fund can only be used to provide scholarships to worthy and needy students who are residents of North Carolina and enrolled in public institutions of higher education in North Carolina.
Summary date: May 14 2013 - View summary
House committee substitute makes the following changes to the 2nd edition.
Amends GS 105-228.5(d)(3), (concerning taxes measured by gross premiums), revising the allocation of the net proceeds of the additional tax on gross premiums on insurance contracts for property coverage as follows, 25% of the additional tax must be credited to the Volunteer Fire Department Fund (was, 30%) and 20% must be credited to the Department of Insurance for disbursement pursuant to GS 58-84-25 (was, 25%). Also provides that up to 20%, as determined in accordance with GS 58-87-10(f), must be credited to the Workers' Compensation Fund, with the remaining net proceeds credited to the General Fund (previously, 45% of the net proceeds to the Workers' Compensation Fund).
Amends GS 58-87-1, Volunteer Fire Department Fund, providing that up to 1% (was, 2%) of the Fund can be used for additional staff and resources to administer the Fund in each fiscal year.
Amends GS 58-84-25, Disbursement of funds by Insurance Commissioner, providing that the Insurance Commissioner (Commissioner) will deduct the sum of 1% (was, 2%) from the tax proceeds and retain the same in the budget of the Department of Insurance for the purpose of administering the disbursement of funds pursuant to GS 58-84-35.
Amends GS 58-87-10, Workers' Compensation Fund for the benefit of volunteer safety workers, providing that revenue is credited to the Workers' Compensation Fund from a portion of the proceeds of the tax levied under GS 105-228.5(d)(3) and from an assessment on local governments served by one or more eligible units as set forth in subsection (g) of this section.
Enacts new GS 58-87-10(f), providing that the Department of Insurance will conduct a periodic actuarial study to determine the amount required to meet the needs of the Fund. Sets out the form and shape of the study, providing that it will be reviewed by the Office of State Budget and Management. Directs the Office of State Budget and Management, with the Department of Insurance, to notify the Secretary of Revenue of the amount required to meet the needs of the Fund by March 1 of each year. The Secretary of Revenue will then remit that amount with specified limitations.
Enacts new GS 58-87-10(g), providing that if the amount remitted pursuant to the above section is not sufficient to meet the needs of the Fund, then the Department of Insurance will collect the remaining amount from units of local government, pursuant to a specified formula. The Department of Insurance must provide written notification to the units of local government of the amount required by the assessment no later than April 1 of each year. Units of local government then have 90 days to remit the assessment to the Department for deposit into the Fund.
Summary date: Feb 13 2013 - View summary
House committee substitute makes the following changes to 1st edition. Amends GS 105-228.5(d)(3) to credit 45% of the net proceeds of the additional tax on gross premiums on insurance contracts for property coverage to the Workers' Compensation Fund (previously credited 27% to the Workers' Compensation Fund and 18% to the NC Firemen's and Rescue Squad Workers' Pension Fund).
Summary date: Jan 30 2013 - View summary
Amends GS 105-228.5(d)(3) (concerning taxes measured by gross premiums) to revise the allocation of the net proceeds of the additional tax on gross premiums on insurance contracts for property coverage as follows. Credits 27% to the Workers' Compensation Fund and 18% to the NC Firemen's and Rescue Squad Workers' Pension Fund (currently, this 45% is credited to the General Fund). Effective July 1, 2013.