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SB 389

State management: escheats; unclaimed property of military personnel; modify dormancy periods. Amends secs. 5, 6, 7, 8, 13, 15, 17 & 18 of 1995 PA 29 (MCL 567.225 et seq.) & adds sec. 17a.

2023-2024 Regular Session Introduced by Rosemary Bayer and 8 co-sponsors

Michigan extends dormancy periods for unclaimed property belonging to active military personnel before state seizure, protecting service members from losing assets during deployment.

ASSIGNED PA 0101'24 WITH IMMEDIATE EFFECT
#militaryaffairs:other #property:abandoned #statemanagement:escheats
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Bill Summary · SB 389

Legislative bill overview

SB 389 modifies Michigan's unclaimed property laws to extend dormancy periods before the state takes custody of certain assets belonging to active military personnel. The bill amends the 1995 Uniform Unclaimed Property Act, creating special protections that delay when military members' dormant accounts are transferred to state control.

Why is this important

Military personnel often deploy for extended periods with limited access to financial accounts, making them vulnerable to having assets seized as unclaimed property before they can reclaim them. This bill recognizes that military service creates legitimate periods of inactivity and prevents service members from losing control of their accounts due to circumstances beyond their control.

Potential points of contention

  • Cost to state: Extending dormancy periods delays when the state gains access to unclaimed funds, potentially reducing available revenue for state operations that currently benefit from escheat proceeds
  • Definition complexity: The bill may create administrative burden in determining eligibility (identifying active military status) and tracking extended dormancy periods across multiple account types
  • Fairness questions: Critics might argue non-military citizens with legitimate reasons for account inactivity (hospitalization, incarceration, displacement) lack similar protections, raising equity concerns

Compiled from official sources — confirm details with the bill’s official record.

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