HOUSE BILL No. 5524

 

March 29, 2012, Introduced by Reps. Nesbitt, MacGregor, Jacobsen, Forlini, Poleski, Pscholka, Haveman, Haines, Tyler, Kowall, Crawford, Huuki, Farrington, O'Brien, Horn and Olson and referred to the Committee on Tax Policy.

 

     A bill to amend 1995 PA 29, entitled

 

"Uniform unclaimed property act,"

 

by amending section 31 (MCL 567.251), as amended by 1997 PA 195.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 31. (1) The administrator may require a person who has

 

not filed a report under this act or a person who the administrator

 

believes has filed an inactive, incomplete, or false report, to

 

file a verified report in a form specified by the administrator.

 

The report shall state whether the person is holding any unclaimed

 

property reportable or deliverable under this act, describe

 

unclaimed property not previously reported or as to which the

 

administrator has made inquiry, and specifically identify and state

 

the amounts of property that may be in issue.

 

     (2) The administrator, at reasonable times and upon reasonable


 

notice, may examine the records of a person to determine whether

 

the person has complied with this act. The administrator may

 

conduct the examination even if the person believes he or she is

 

not in possession of any property reportable or deliverable under

 

this act. The administrator may contract with any other person to

 

conduct the examination on behalf of the administrator. If the

 

administrator contracts with any other person to conduct an audit

 

under this act, the audit shall not be performed by an auditor on a

 

contingent fee basis or any other similar method that may impair an

 

auditor's independence or the perception of independence by the

 

public.

 

     (3) If a person is treated under section 13 as the holder of

 

the property only insofar as the interest of the business

 

association in the property is concerned, the administrator,

 

pursuant to subsection (2), may examine the records of the person

 

if the administrator has given the notice required by subsection

 

(2) to both the person and the business association at least 90

 

days before the examination.

 

     (4) If an examination of the records of a person results in

 

the disclosure of property reportable and deliverable under this

 

act, the administrator may assess the cost of the examination

 

against the holder at the rate of $50.00 a day for each examiner;

 

however, the charges shall not exceed the value of the property

 

found to be reportable and deliverable. The cost of examination

 

made pursuant to subsection (3) shall be imposed only against the

 

business association.

 

     (5) If a holder fails after the effective date of this act


 

March 28, 1996 to maintain the records required by section 32 and

 

the records of the holder available for the periods subject to this

 

act are insufficient to permit the preparation of a report, the

 

administrator may require the holder to report and pay an amount as

 

may reasonably be estimated from any available records.