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Committee passes bill letting auditor convert abandoned securities after seven years
Summary
The Senate Insurance & Commerce committee passed House Bill 14 27 to let the auditor of state's office convert abandoned securities to cash immediately after the existing seven‑year abandonment period rather than waiting an additional three years, while continuing efforts to locate owners.
The Senate Insurance & Commerce committee voted to pass House Bill 14 27, a measure that would allow the auditor of state's office to convert abandoned securities to cash once the current seven‑year presumption of abandonment has elapsed, rather than waiting a further three years under existing law.
Representative Eaves, who presented the bill to the committee, said the auditor’s office works to reunite owners with property and has returned about $66,000,000 to Arkansans to date. He told the committee that Arkansas extended the presumption of abandonment for securities from five years to seven years two years ago and that the proposed change would give the auditor permissive authority to preserve whatever value remains by converting securities to cash after seven years while continuing to search for owners or heirs.
Senator Johnson asked whether the term “securities” included traditional paper stock certificates kept in safe‑deposit boxes. Representative Eaves replied that it could include certificates and electronic holdings, and explained that securities sometimes become abandoned when owners cannot be located or have died without an identifiable heir. He added that when the auditor converts securities to cash the office holds the cash value and continues to attempt to locate the rightful owner.
Under current law, holders must try to locate owners for seven years before turning securities over to the state; the auditor then must wait an additional three years before converting them to cash. Representative Eaves said the bill would remove that extra three‑year waiting period so the auditor can convert sooner and preserve the value for eventual claimants.
A motion to “Do pass” was made and seconded; the committee approved the bill by voice vote. The record does not show who made the motion or who seconded it, and no roll‑call tally was recorded on the transcript. The chair announced that the bill had passed.
The committee adjourned shortly afterward for lack of further business. The bill will proceed according to the chamber’s established legislative process.
