Colorado Legislative Council Staff

NO FISCAL IMPACT

TITLE:            CONCERNING AGREEMENTS TO PAY COMPENSATION FOR THE RECOVERY OF UNCLAIMED PROPERTY.

Summary of Assessment

            The bill would establish maximum rates of compensation for the recovery of unclaimed property that has been paid or delivered to the State Treasurer. Under current law, agreements to pay compensation to recover unclaimed property may not be entered into within 24 months after the date that payment or delivery of the property is made to the State Treasurer. For agreements entered into for more than 24 months, but less than 36 months after the date payment or delivery is made, the bill would limit the amount of compensation paid to not more than 20 percent of the market value of the recoverable property. For agreements entered into 36 months or more after the date payment or delivery is made, the compensation to be paid could not be in excess of 30 percent of the market value.

            Historically, finders have concentrated on property over 36 months old. The going rate for their services is 35 percent of the market value of the recoverable property. While the bill limits the amount of compensation for the finders, it is not expected to reduce the number of finders or the number of claims for unclaimed property to the State Treasurer’s office. Therefore, the bill is assessed as having no fiscal impact.

            The bill will become effective at 12:01 a.m. on the day following the ninety-day period after adjournment sine die of the General Assembly, or on the date of the official declaration of the vote of the people as proclaimed by the Governor, if a referendum petition is filed pursuant to Article V, Section 1 (3) of the State Constitution.

Departments Contacted

            State Treasurer