Sectional Analysis for HB 417

"An Act Relating to the Unclaimed Property of Persons Dying Intestate"

Section 1: Repeals and reenacts AS 13.12.105 to provide that property that is part of an intestate estate and has no taker under Chapter 13.12, Intestacy, Wills and Donative Transfers, is subject to AS 34.45.280 – 34.45.780, (Reporting and Disposition of Personal Property, Administration of Abandoned Property, Enforcement and Penalties, and General Provisions)

If the property is not claimed under the above statutes within five years, it is distributed as follows: 1) to a qualified community organization located in the city where the decedent resided at the time of death; 2) to a qualified community organization located in the borough or unified municipality where the decedent resided at the time or death; and 3) to the state if a community organization does not apply for the property or if the decedent did not reside in a municipality at the time of death.

When property is subject to distribution, the department of Revenue shall place a notice in a newspaper distributed in the municipality stating that there is property to be distribution and qualified community organizations in the municipality may apply to receive the property. The property shall be distributed by the department as follows: 1) to the sole applicant that applies; 2) to the applicants who apply and agree to share the property if more than one apply; 3) to the applicant identified by the appropriate local government as providing its services the most broadly throughout the municipality if more than one qualified organization applies and the applicants cannot agree to share the property.

In order to qualify, a community organization must be exempt from federal taxation, be operated exclusively to provide services that promote the well being of the residents of the municipality, and have been operating in the municipality for at least three years.

HB417SA:3/02/98