Unclaimed Funds Bill Unearths Glaring Unknowns

For the sake of providing legal context, the Virgin Islands Code defines property as both “tangible property” such as valuables held in a “safe deposit box or other safekeeping depository” but also:

“[A] fixed and certain interest in intangible property that is held, issued, or owed in the course of a holder's business, or by a government, governmental subdivision, agency, or instrumentality, and all income or increments therefrom.

The term includes property that is referred to as or evidenced by:

(A) money, a check, draft, deposit, interest, or dividend;

(B) credit balance, customer's overpayment, gift certificate, security deposit, refund, credit memorandum, unpaid wage, unused ticket, mineral proceeds, or unidentified remittance;

(C) stock or other evidence of ownership of an interest in a business association or financial organization;

(D) a bond, debenture, note, or other evidence of indebtedness;

(E) money deposited to redeem stocks, bonds, coupons, or other securities or to make distributions;

(F) an amount due and payable under the terms of an annuity or insurance policy, including policies providing life insurance, property and casualty insurance, workers' compensation insurance, or health and disability insurance; and

(G) an amount distributable from a trust or custodial fund established under a plan to provide health, welfare, pension, vacation, severance, retirement, death, stock purchase, profit sharing, employee savings, supplemental unemployment insurance, or similar benefits.”

To be clear, these definitions do not apply to “real property,” which would include parcels of land.

Bill No. 34-0212, which would amend Title 28, Chapter 29, Section 660 of the VI Code in order to update accounting practices for these funds and provide access for owners seeking to reclaim their unclaimed funds, said the bill’s sponsor, Senator Alma Francis Heyliger during her introduction of the legislation during the June 16th session of the GOCP committee.

“This is a piece of legislation that is attempting to modernize and bring into modern days the process and procedures of dealing with unclaimed and abandoned funds that is under the custodianship of the Lieutenant Governor's office on behalf of the Government of the Virgin Islands,” said Sen. Francis Heyliger.

Representatives from the Office of the Lieutenant Governor, which acts as the custodian, or the legal “administrator” of the unclaimed property funds said that it holds an estimated $15.9 million in its separate trust fund, which far exceeds the minimum of “at least $100,000” as mandated by Title 28, Chapter 29, Section 664 “to pay allowed claims.” That same section states: “the administrator shall promptly deposit in the General Fund of the Treasury of the Virgin Islands of the [sic] all funds received under this chapter, including the proceeds from the sale of abandoned property under section 663.”

Sen. Francis Heyliger pointed out that the trust fund balance has grown by nearly $2 million since her first formal inquiry submitted over a year ago, but it remains unclear how much the Office of the Lieutenant Governor has contributed to the General Fund as prescribed by law, Sen. Francis Heyliger said.

“The trust account is up to $15.9 [million],” said Sen. Francis Heyliger. “And we've had a very interesting time trying to get the amount that is in the general fund so we can get an overall total of how much these unclaimed funds are.”

Sen. Francis Heyliger noted her gratitude for the current climate of collaboration with the Office of the Lieutenant Governor, but alluded to possible amendments as the bill advances in light of such glaring deficiencies in the law. In its current form, the bill seeks corrective action and greater transparency with Title 28, Chapter 29, Section 660, which pertains to the “Notice and publication of lists of abandoned property” and currently states:

“The administrator [Office of the Lieutenant Governor] shall publish a notice not later than November 30 of the year next following the year in which abandoned property has been paid or delivered to the administrator. The notice must be published in a newspaper of general circulation in the Virgin Islands. If a holder does not report an address for the apparent owner, or the address is outside the Virgin Islands, the notice must be published in the district in which the holder has its principal place of business within the Territory. The advertisement must be in a form that, in the judgment of the administrator, is likely to attract the attention of the apparent owner of the unclaimed property. The form must contain:

(1) the name of each person appearing to be the owner of the property, as set forth in the report filed by the holder;

(2) the last known address or location of each person appearing to be the owner of the property, if an address or location is set forth in the report filed by the holder;

(3) a statement explaining that property of the owner is presumed to be abandoned and has been taken into the protective custody of the administrator; and

(4) a statement that information about the property and its return to the owner is available to a person having a legal or beneficial interest in the property, upon request to the administrator.

(b) The administrator is not required to advertise the name and address or location of an owner of property having a total value less than $50, or information concerning a traveler's check, money order, or similar instrument.”

Representatives from the Office of the Lieutenant Governor noted that it had not published an updated list according to those standards since 2012.

“From 2012 to now without any listings sure is a long time,” said Senator Franklin D. Johnson during his line of questioning during the June 16th session.

Bill No. 34-0212 proposes the following by adding to the already established language:

“(C)The administrator shall keep an online, searchable database that allows the public to search all property and funds that have been collected by the Lieutenant Governor pursuant to this chapter. The database must include at least the following information:

(1) The name of each person appearing to be the owner of the property;

(2) The last known address of each person appearing to be the owner of the property;

(3) A description of the property considered to be abandoned or unclaimed;

(4) The value of the property;

(5) The date on which the property was transferred to the administrator; and

(6) Clear instructions on the process by which a person may claim the abandoned or unclaimed property, including access to forms, and

(7) A secure verification of the identity of the person appearing to be the owner of the property.

(D) Not later than 30 days after the abandoned or unclaimed property is paid or 6 delivered to the administrator, the administrator shall add all information required under subsection (c) to the database.”

Representatives of the Office of the Lieutenant agreed with the proposal and offered their support of the measure.

“The Office of the Lieutenant Governor recognizes the importance of this program and the need to reunite owners with their property,” said Attorney Glendina P. Matthew, the interim director of the Division of Banking, Insurance and Financial Regulation.

Senator Novelle E. Francis, Jr. commended the bill’s sponsor for offering up legislation and allowing “transparency and accountability to occur.”

 “This is a very important measure that's being considered today,” said Sen. Francis. “And one that has been in the books for quite some time. So I like the direction that it's going towards.”

While Senator Marvin A. Blyden offered his support for the bill and ultimately voted in line with the rest of the lawmakers in the gallery, he urged the Office of the Lieutenant Governor to resume its annual publications in the newspaper for “for those who are not technologically technologically savvy.”

With a gallery full of supporting votes, Bill No. 34-0212 advanced, not only without dissent, but with universal praise for the bill’s sponsor, Sen. Francis Heyliger. It will now move on to the Senate’s Rules and Judiciary for further consideration, and if passed, will move to the full legislature for a final vote.