Plain Text Law

Title 03 — Subtitle 05. Miscellaneous Revenue

Chapter 01. Abandoned Property Regulations

Regulation .01 Abandoned Funds.Copy Citation

A.
Repealed.
B.
Repealed.
C.
Effective June 1, 2003, for reporting periods ending on or after June 30, 2003, any checking, savings, share, negotiable order of withdrawal, automatic transfer, share draft, electronic terminal account, or other similar type of account held by a banking or financial organization is presumed abandoned after 3 years, if the depositor or shareholder has not actively deposited, withdrawn, or otherwise indicated an interest in the funds or deposit as evidenced by memorandum or correspondence from the depositor on file with the banking or financial organization.
D.
Effect of Automatic Deposits and Withdrawals on Presumption of Abandonment.
(1)
A depositor or shareholder shall be deemed to have actively deposited or withdrawn funds from an account covered by this regulation, thereby overcoming the presumption of abandonment described in §C of this regulation, if:
(a)
The depositor or shareholder authorized and established an automatic deposit or withdrawal;
(b)
The authorization has not been cancelled, revoked, rescinded, or otherwise terminated; and
(c)
Funds are deposited or withdrawn automatically based on the depositor or shareholder’s effective authorization.
(2)
A depositor or shareholder may not be deemed to have actively deposited or withdrawn funds from an account covered by this regulation if:
(a)
The bank or financial organization automatically deposits interest or dividends earned on the account; or
(b)
The bank or financial organization automatically withdraws a service charge.

Regulation .02 Service Charges.Copy Citation

A.
A service charge of any type may not be made by a holder of any property presumed abandoned under Commercial Law Article, Title 17, during the period of time giving rise to presumption of abandonment unless the holder complies with the requirements set forth in Commercial Law Article, §17-308.1.
B.
Except in those instances in which a service charge is properly made pursuant to §17-308.1, a holder shall report, pursuant to §17-310, the full amount appearing on the face of every instrument presumed abandoned. By way of illustration but not of limitation, instruments subject to these provisions include certificates of deposit, drafts, traveler's checks, and money orders.
C.
Repealed.
D.
Repealed.
E.
Effective June 30, 2003, for purposes of Commercial Law Article, §17-308.1, Annotated Code of Maryland, an account shall be considered dormant or inactive, if, with respect to that account, the owner has for a period of 1 year, taken none of the actions set forth in Commercial Law Article, §17-301, Annotated Code of Maryland. When a service charge is permitted, the maximum amount of the charge shall be $10 per year for an account that does not exceed $50 and $20 per year for an account that exceeds $50.

Regulation .03 Liability for Interest.Copy Citation

A holder may not cease payment or accrual of any benefits, including dividends or interest on property, under this title, unless the holder complies with the requirements as set forth in Commercial Law Article, §17-308.1.

Regulation .04 Prohibited Agreements.Copy Citation

Contractual agreements are not permitted which tend to circumvent the intention of the Maryland General Assembly and provide any holder subject to this Article with a windfall or private escheat practice. The total reported shall be the amount the owner would have received had the property not been abandoned.

Regulation .05 Voluntary Reporting.Copy Citation

Since the Maryland law is purely custodial, any holder of unclaimed property may voluntarily report funds before the statutory due dates and be relieved of all accountability and responsibility upon delivery of the unclaimed property to this office.

Regulation .06 Retirement Accounts.Copy Citation

The period of abandonment for accounts established pursuant to 26 U.S.C. §401(a), et seq. (commonly known as Self-Employed Retirement, or Keogh, Plans) and 26 U.S.C. §408(a), et seq. (commonly known as Individual Retirement Accounts or IRA's) may not begin until such time as distribution of all or part of the property constituting the respective account shall be, under the terms of the retirement plan, mandatory.

Regulation .07 Automatically Renewable Certificates of Deposit.Copy Citation

The period of abandonment for any property automatically renewable according to its terms that is subject to §§17-301 and 17-308 shall commence after the expiration of its initial term. If, at the time provided for delivery in §17-312, a penalty or forfeiture in payment of interest would result from the delivery of that property, the time for delivery shall be extended until such time as no penalty or forfeiture would result.

Chapter 02. Abandoned Property Regulations—Notice of Assessment for Unclaimed Property

Regulation .01 Definitions.Copy Citation

A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Administrator” means the State Comptroller.
(2)
“State Comptroller”, unless expressly provided otherwise, includes:
(a)
An employee of the Comptroller acting within the scope of employment; and
(b)
An agent or representative of the Comptroller acting within the scope of the Comptroller's authority.

Regulation .02 Examination of Records and Notice of Assessment.Copy Citation

A.
During normal business hours, the Administrator may examine the records of a person if there is reason to believe that the person failed to report property that should have been reported under Commercial Law Article, Title 17, Annotated Code of Maryland.
B.
If the Administrator, after conducting an examination of the records of a person, determines that the person has failed to pay or deliver abandoned property to the administrator as required under Commercial Law Article, Title 17, Annotated Code of Maryland, the Administrator shall issue a Notice of Assessment for Unclaimed Property.
C.
The Notice of Assessment for Unclaimed Property shall be dated and mailed to the person against whom the assessment is made.
D.
A Notice of Assessment for Unclaimed Property is considered a decision of the administrator.

Regulation .03 Review of a Notice of Assessment for Unclaimed Property.Copy Citation

A.
Upon receipt of a Notice of Assessment for Unclaimed Property, the person shall promptly:
(1)
Pay or deliver to the Administrator the abandoned property;
(2)
File a written Request for Revision; or
(3)
Commence an action in the circuit court.
B.
Requests for Revision of Assessment.
(1)
A person may make a request to revise a Notice of Assessment for Unclaimed Property by submitting a written Request for Revision to the Hearings and Appeals Section of the Comptroller's Office within 90 days of the date of the Notice of Assessment for Unclaimed Property.
(2)
The person's Request for Revision shall:
(a)
Itemize the specific objections the person has to the Notice of Assessment for Unclaimed Property; and
(b)
Attach to it a copy of the Notice of Assessment for Unclaimed Property.
(3)
A Request for Revision shall stay the decision of the Administrator included in the Notice of Assessment for Unclaimed Property until:
(a)
A Notice of Final Determination is issued;
(b)
The Request for Revision is dismissed; or
(c)
The Request for Revision is withdrawn.
C.
Hearings.
(1)
After receipt of a timely Request for Revision, the Comptroller's Hearings and Appeals Section shall schedule a hearing.
(2)
The Hearings and Appeals Section shall notify the person:
(a)
Of the date, time, and place of the hearing;
(b)
That the person may present witnesses and documents at the hearing; and
(c)
That failure to appear for the scheduled hearing shall be treated as a withdrawal of the Request for Hearing.
(3)
Postponements.
(a)
The hearing officer shall consider a request for postponement only if the person establishes good cause for the postponement.
(b)
Except as provided in §C(3)(d) of this regulation, a request for postponement shall be made in writing and be received by the Hearings and Appeals Section not less than 5 business days before the scheduled hearing.
(c)
The hearing officer may request documentation of the reasons for the postponement request from the person.
(d)
Emergency Request for Postponement.
(i)
For purposes of this paragraph, “emergency” means a sudden, unforeseen occurrence requiring immediate attention which arises within 5 business days of the hearing.
(ii)
In an emergency, a request for postponement may be made by telephone.
(4)
Failure to Attend Hearing. If a person fails to attend a scheduled hearing, the decision of the Administrator as stated in the Notice of Assessment for Unclaimed Property becomes effective as of the date of the scheduled hearing.
(5)
Prehearing Procedure. Before a hearing, the hearing officer may:
(a)
Review or request materials relevant to the proceedings; and
(b)
Hold a prehearing conference.
(6)
Procedures.
(a)
The hearing officer shall record all hearings.
(b)
A person may produce witnesses and documents in support of the person's position.
(c)
Subpoenas.
(i)
A person may request that the hearing officer subpoena witnesses.
(ii)
A person shall make the request in writing, not later than 10 days before the hearing, explaining why the subpoena is necessary.
(iii)
The hearing officer may decline to issue the subpoena.
(d)
The hearing officer may question any witnesses and may produce, by subpoena or otherwise, additional witnesses.
(e)
A person may question any witnesses called by the hearing officer.
(f)
The hearing officer may allow a person time to provide additional evidence or written arguments, and may reconvene the hearing if the hearing officer considers it necessary.
(g)
The hearing officer may consult with any employee of the Administrator and with the person before making a decision in a case.
(7)
Evidence.
(a)
The hearing officer shall consider probative evidence without regard to any technical rules, but may reject evidence which is incompetent, irrelevant, immaterial, unduly repetitious, or not responsive.
(b)
Copies of documents may be admitted, although the hearing officer may require production of originals.
(c)
The hearing officer shall retain documentary or other evidence for at least 60 days after the case is finally resolved. The evidence may then be destroyed unless the owner or person producing it makes a written request for its return.
(8)
Witnesses shall be under oath or affirmation.
(9)
Notice of Final Determination.
(a)
The hearing officer shall issue a Notice of Final Determination on behalf of the Administrator.
(b)
The Notice of Final Determination shall be mailed to the person and shall state the:
(i)
Substance of the evidence heard;
(ii)
Decision; and
(iii)
Reasons for the decision.
D.
If the Notice of Final Determination concludes that the person has failed to pay or deliver abandoned property to the administrator as required under Commercial Law Article, Title 17, Annotated Code of Maryland, the person shall pay or deliver to the Administrator the abandoned property within 30 days of the date on the Notice of Final Determination.
E.
A person aggrieved by a decision of the Administrator may commence an action in the circuit court for the county:
(1)
Within 90 days of the decision of the Administrator;
(2)
In the event of the filing of a Request for Revision, within 90 days of the date of the Notice of Final Determination; or
(3)
In the event that a Request for Revision was filed and subsequently dismissed or withdrawn, within 90 days of the dismissal or withdrawal.

Regulation .04 Enforcement by the Administrator.Copy Citation

The Administrator may bring any action allowed by law, including but not limited to an enforcement action in the circuit court, to enforce the Notice of Assessment for Unclaimed Property or the Notice of Final Determination, or both.