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Proposal would let counties void small uncashed checks after three years; state treasurer warns of owner-protection gaps
Summary
LB1203 would permit counties to void uncashed checks under $100 after three years and credit funds to county general funds while preserving a process for claimants to seek payment; the Nebraska State Treasurer's unclaimed property director opposed the bill, citing consumer-protection concerns and a risk of duplicative or weakened notice and return processes.
Senator Stan Klaus introduced LB1203, a bill from the Nebraska Association of County Officials, to create an alternative process for handling small uncashed county checks. Under the proposal, counties would void uncashed checks under $100 after three years, charge them off the books, and credit the funds — including any interest — to the county general fund. If a claimant later presents a voided check, the county board would retain authority to approve payment.
Proponents, including a county official testifying for NACO, said the change would keep small-dollar funds local, reduce administrative costs associated with state reporting for small amounts and preserve easy access for constituents because individuals could still present claims to the county board.
Meagan Aguirre, director of the Unclaimed Property Division at the Nebraska State Treasurer's Office and president of the National Association of Unclaimed Property Administrators, testified in opposition. Aguirre said the State Treasurer's Office maintains a searchable statewide database, participates in the national missingmoney.com registry, and last year returned about $19.7 million through nearly 19,952 claims. She told senators the state program is designed to protect owners and that moving small amounts to county funds could reduce outreach and the effectiveness of returning assets to rightful owners.
"No matter the dollar amount ... Nebraskans have the right to their property, and the funds held at the Nebraska State Treasurer's Office are always available for claim indefinitely," Aguirre said, urging the committee not to advance LB1203 in its current form. Committee members discussed possible harmonization between the county and state processes and Senator Klaus said he would work with the Treasurer's Office to address operational concerns.
The hearing concluded with the sponsor indicating willingness to follow up on questions and possibly adjust the bill language to resolve concerns about notice and duplication of effort. No committee vote was taken at the hearing.
