Feb. 12, 2008 — During hearings on St. Thomas Tuesday, the Government Operations Committee approved a bill adopting the 1995 Uniform Unclaimed Property Act, sending it out of committee with a favorable recommendation.
The law modifies a prior unclaimed-property act to bring it into conformity with the latest version of the act, according to testimony by Nicole Julal, legislative attorney for the National Conference of Commissioners on Uniform State Laws, also known as the Uniform Law Commission.
"The law allows for intangible property that is unclaimed to be transferred to the state as the permanent custodian for the owners," Julal said. "It is a revenue-generating act. The state is custodian, and the property becomes available if the owner does not claim it. However that is not the primary focus, which is holding property securely until the recipient claims it."
This is already the law in the Virgin Islands. The new law keeps most aspects of the existing unclaimed-property law, making changes in the details of how particular classes of property are treated.
"The United States Virgin Islands currently has the 1981 version of the act on its books," Julal said. "In 1995, the Uniform Law Commission once again revised the act. This bill seeks to enact the most current version of the law."
The Uniform Law Commission lobbies for standardized, uniform laws in the states and territories, to make markets and legal systems predictable for the sake of fostering smooth business relations. Many, though not all, states have adopted this and other recommended uniform laws.
Part of the impetus for changing the existing uniform law on unclaimed property is to bring the law into conformity with several U.S. Supreme Court cases, Julal said. Major changes in the new act include reducing the time after which corporate stock, gift certificates and life insurance policies will be regarded as "abandoned," and get converted to state control.
"The generally accepted notion is it is much easier to find owners in the short period after the property becomes lost," she said.
The senators were broadly supportive.
"This is a common sense measure to streamline the process," Sen. Alvin Williams said. "I support it."
Sen. Juan Figueroa-Serville praised the bill in similar terms. Sen. Liston Davis questioned Julal on how the bill would generate revenue for the territory. He sought and received clarification that property held in custody by the state would still remain the property of whomever its rightful recipient may be and could be claimed at any time by the rightful owner. The state would get income primarily from accrued interest on funds held in custody by the state, Julal said.
Voting in favor were Sens. Shawn-Michael Malone, Liston Davis, Carlton "Ital" Dowe, Terrence "Positive" Nelson, Basil Ottley, Juan Figueroa-Serville and Alvin Williams, passing the bill unanimously on for consideration by the Rules and Judiciary Committee.
Government Operations held three other bills in committee Tuesday. One was an act to transfer the property known as Michelle Motel in St. Thomas' Estate Contant from the Department of Health to the V.I. Housing Finance Authority, cooperating with the Department of Human Services to renovate the structure and use it as an emergency-housing facility, particularly for the mentally ill and mentally challenged.
Julio Rhymer testified on behalf of the Housing Finance Authority, concluding the building was likely too damaged to renovate and was prone to extreme flooding. Rhymer recommended the building be razed completely, to be replaced perhaps by a park. Human Services Commissioner Chris Finch largely echoed that conclusion.
Much the same conclusion was made by Health Commissioner Vivian Ebbesen-Fludd, supported by testimony from James G. Bernier, capital projects manager and engineer for the Health Department. Health is in the process of a formal assessment of the property. The Legislature appropriated $200,000 in 2004 to assess and renovate the property and perhaps engage in a turn-key contract on a mental health-care facility, Ebbesen-Fludd said. Of that sum, $42,000 has been set aside for an assessment and a company has been selected to do the assessment, she said.
The bill was held in committee by a unanimous vote.
Williams, sponsor of a bill to require the government and its semi-autonomous agencies to purchase only fuel-efficient motor vehicles, said his bill may be preempted by a more comprehensive one proposed already by Sen. Louis Hill. Williams asked that the bill be held in committee for the time being. The vote was unanimous.
A bill setting customer-service guidelines for government employees and agencies was held in committee because several people invited to testify were unable to attend Tuesday's hearing because of required attendance in court and other similar unavoidable contingencies.
All committee members were present. Senate President Usie Richards, though not a member, attended part of the hearing as well.
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