HELENA — House Bill 164, introduced by Rep. Ken Walsh, would modernize Montana’s Uniform Unclaimed Property Act by adding electronic and recurring-account activities as triggers that show an owner’s continuing interest in an account and by clarifying notice and reporting rules for holders.

Walsh told the House Business and Labor Committee the state law, passed in 1995, ‘‘no longer reflects how people do business 30 years later.’’ He said the result is property increasingly presumed abandoned and turned over to the state when owners remain actively aware of their accounts through mobile and online banking.

Banking trade groups — including the Montana Bankers Association, Montana’s Credit Unions, the Montana Independent Bankers Association and Stockman Bank’s chief information officer — told the committee HB 164 would reduce mistaken turnovers to the state. Speakers described real-world examples where automatic deposits or mobile access should demonstrate ongoing ownership, but current statutory triggers do not count those actions. Stockman Bank’s Kevin Guntner said his institution initially identified about $17 million potentially reportable but recaptured most of it after proactive multi-channel outreach.

Representatives of Montana’s Department of Revenue said the agency maintains an unclaimed property portal, publishes quarterly public notices and contacts owners when report data includes names. DOR's unit manager, Russ Christianson, told lawmakers the agency receives about $380,000 a year reported as wages under current rules and noted HB 164 would change the dormancy period for payroll cards from one year to five years.

Committee questions focused on technical details and consumer scenarios: whether the bill’s triggers include online access, how automatic deposits and agent access work, and whether the change would slow or accelerate transfers to the DOR. Sponsors said the bill’s triggers explicitly include account access and automatic deposits or withdrawals; a proposed minor amendment would add natural-gas cooperatives to a cooperative-scholarship exception.

The committee did not take final action during the Jan. 31 hearing. Walsh urged committee support and indicated he will work with staff on the technical amendment.

Why it matters: Banks and credit unions argued the change will protect customers who use online portals or automated transfers from losing funds labeled ‘‘abandoned’’ under an older, paper-era statute. DOR said administration would remain largely unchanged, but payroll-card dormancy would shift and the agency cannot estimate total fiscal change until more reporting data is available.

Next steps: The sponsor plans a narrow amendment addressing cooperative scholarship exceptions and the bill will return to the committee for further consideration.