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Banks, credit unions support updating unclaimed‑property law to reflect online banking
Summary
HB 164 would modernize Montana's unclaimed‑property law by updating dormancy triggers to account for internet/mobile banking and other holder practices; proponents said the change will reduce mistaken presumption of abandonment and improve owner notification.
Representative Ken Walsh told the committee that House Bill 164 updates Montana’s Unclaimed Property Act, last substantively revised in 1995, to reflect modern banking, electronic statements, and online account access. Bankers and credit unions said the current dormancy triggers and notice procedures do not align with how customers now monitor accounts.
Sam Sill of the Montana Bankers Association and Jesse Luther for the Montana Credit Unions both testified in support, saying that modernization will reduce the number of legitimately active accounts wrongly presumed abandoned and will ease the compliance burden on holders. Chief information officer Kevin Guenther (online) said online account access and mobile app activity should be recognized as evidence of an active account and therefore should prevent premature dormancy declaration.
Department of Revenue unclaimed‑property staff (Russ Christianson) confirmed the state currently holds roughly $148 million in presumed unclaimed property and has improved its searchable portal (mycash.mt.gov) to help owners locate assets; he said the bill aligns reporting triggers with current banking practices and helps get money back to rightful owners.
Committee questions addressed gift‑certificate language, traveler's checks, interest accrual and how interest is treated; sponsors clarified that the bill modernizes triggers and does not change owners’ rights to reclaim their funds once reported to the state. Proponents asked for a do‑pass recommendation.
