Notice of Proposed Rulemaking

MAR Notice No. 2026-126.1

Summary

Amendment of ARM 42.38.101, 42.38.201, and 42.38.305 to Implement House Bill 88 (2025) (HB 88) Which Revised Conditions for the Return of Unclaimed Property

No Hearing Scheduled

If the agency receives requests for a public hearing on the proposed rulemaking from either 10 percent or 25, whichever is less, of the persons directly affected by the proposed rulemaking; from the appropriate administrative rule review committee of the Legislature; from a governmental subdivision or agency; or from an association having not less than 25 members who will be directly affected, a hearing will be held at a later date. Notice of the hearing will be published in the Montana Administrative Register.

The estimated number of persons directly affected by the proposed rulemaking is 15,595 based on the number of taxpayers the department estimates have prospective unclaimed properties that could be processed through an automatic return.  The number of hearing requests necessary for the department to conduct a public hearing shall be 25, which is less than ten percent of the number of persons affected.

Hearing Requests

If the persons directly affected by the proposed rulemaking wish to express their data, views, or arguments orally or in writing at a public hearing, they must make written request for a hearing and submit this request to the department using the contact information below.  Hearing requests must be received by Monday, August 24, 2026, at 5:00 p.m.

Comments

Comments may be submitted using the contact information below.  Comments must be received by Monday, August 24, 2026, at 5:00 p.m.

Accommodations

The agency will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice.  Requests must be made by Friday, July 31, 2026, at 5:00 p.m.

Contact

Todd Olson, Rule Reviewer - Department of Revenue, Legal Services Office

(406) 444-7905

todd.olson@mt.gov

General Reasonable Necessity Statement

The department proposes to amend ARM 42.38.101, 42.38.201, and 42.38.305 primarily to implement House Bill 88 (2025), which revised 70‑9‑815, MCA, and authorizes the administrator of unclaimed property - a/k/a the department - to waive the statutory requirement that owners file a claim form and to automatically pay or deliver certain qualifying unclaimed property directly to apparent owners.

These proposed amendments update references to the Uniform Unclaimed Property Act (Act), align rule terminology, and provide helpful cross‑referencing to the Act.  The proposed changes remove obsolete or redundant language, modernize references, update department contact information, and improve organization and readability so that holders and owners can more easily understand their rights and obligations under the Act.

While this general statement of reasonable necessity covers the basis for the proposed rule amendments, it is supplemented below to explain rule-specific proposals.

Rulemaking Actions

Amend

The rules proposed to be amended are as follows, stricken matter interlined, new matter underlined:

42.38.101 Purpose

(1) The Uniform Unclaimed Property Act provides that property presumed abandoned under deleted: the act, end deleted inserted: 70-9-803, MCA,, end inserted shall be delivered to and taken into custody by thedeleted:  Department of Revenue, end deleted inserted: department, end inserted.  The department shall protect the unknown owners by returning property deleted: delivered to the department under the act upon the filing of a verified claim by the owner which is approved by the department, end deleted inserted: only after the owner submits a claim form to the department and the claim is approved, except as provided under 70-9-815(5), MCA, and ARM 42.38.305, end inserted.

Authorizing statute(s): 70-9-828, MCA

Implementing statute(s): inserted: 70-9-803,, end inserted 70-9-805, 70-9-815, MCA

Reasonable Necessity Statement

In addition to the department’s general statement of reasonable necessity, the department proposes to amend ARM 42.38.101 to replace generic references to “the act” with a specific reference to 70‑9‑803, MCA, and to change “Department of Revenue” to “department” for consistency with drafting conventions in ARM and the implementing statutes.

The rule is proposed for further amendment to clarify that the department returns unclaimed property to owners only after a claim form has been submitted and approved, except as provided under 70‑9‑815(5), MCA, and ARM 42.38.305.  These changes conform the statement of purpose to current law and improve clarity for the public about when a formal claim is required and when the department may initiate payment without a claim.

42.38.201 Presumption of Abandonment -- Exception

1. Property in the possession of a holder that is presumed abandoned under deleted: the act, end deletedinserted:  70-9-803, MCA,, end inserted must be reported and delivered to the department as abandoned property.
2. Property held by a deleted: fiduciary, end deleted inserted: holder, end inserted is presumed abandoned unless the owner has, within deleted: five years after it became payable or distributable, end deleted inserted: the dormancy periods defined in 70-9-803, MCA, end inserted:
   1. increased or decreased the principal;
   2. accepted payment of principal or income;
   3. corresponded in writing concerning the property; or
   4. otherwise indicated an interest as evidenced by a memorandum on file with the deleted: fiduciary, end deleted inserted: holder, end inserted.
3. Tangible safe deposit box property must be shipped to deleted: the following address: , end deleted

   deleted: Montana Department of Revenue , end deleted

   deleted: Unclaimed Property Manager , end deleted

   deleted: 2517 Airport Rd. , end deleted

   deleted: Helena, MT 59601 , end deleted

   inserted: the address provided on the department’s website at revenue.mt. gov., end inserted

Authorizing statute(s): 70-9-828, MCA

Implementing statute(s): 70-9-803, 70-9-804, 70-9-805, 70-9-808, MCA

Reasonable Necessity Statement

In addition to the department’s general statement of reasonable necessity, the department proposes to amend ARM 42.38.201 like ARM 42.38.101 to replace references to “the act” with a specific citation to 70‑9‑803, MCA, to align the rule text with the codified Uniform Unclaimed Property Act and to aid users in locating the applicable statutory provisions.

The proposed amendments replace the term “fiduciary” for “holder,” which is more accurate, and replaces the fixed five‑year period with the more accurate reference to the dormancy periods defined in 70‑9‑803, MCA, which vary by property type.  The department also proposes to update mailing instructions for tangible safe deposit box property to direct holders to use the address provided on the department’s website, rather than a fixed street address, to ensure that holders receive up‑to‑date shipping information if the department’s location or mailing address changes.

42.38.305 Claims for Recovery of Property Delivered to State

1. The owner of property which has been delivered to the deleted: Department of Revenue, end deleted inserted: department, end inserted as abandoned property deleted: must, end deleted inserted: may, end inserted claim the property or the proceeds of the property on forms supplied by the department.  inserted: The department may waive the requirement for the owner’s submission of a claim form provided the criteria in 70-9-815, MCA, are met., end inserted
   1. deleted: No claim may be filed for property with a value of less than $50 unless the holder has specifically identified the owner of the property to the department, and the holder has done so since the implementation of the department's new abandoned property computerized tracking system in June 2007., end deleted 
2. General claim requirements are as follows:
   1. Submission of a claim and request for return of property in the possession of the department must be on a form prescribed by the department and bearing the notarized signature of the owner, if required by the department.
   2. The department may require production of originals or copies of driver's license, social security card, voter registration card, or any other documents needed to verify a claimant's identity and signature.
   3. A claim received from an owner of property held by the department shall have first payment priority over any other claim, unless:
      1. the other claim is supported by a court ordered judgment against the owner; or
      2. a bond or other indemnified claim is received from the former holder of the property.
3. Specific claim requirements are as follows:
   1. In the course of verifying a claim, the department is authorized to require reproduction of any of the following:
      1. a properly completed claim form prescribed by the department, bearing the notarized signature of the claimant;
      2. original negotiable instrument;
      3. a stock certificate;
      4. check;
      5. money orders;
      6. certificate of deposit; and
      7. cashier's check.
   2. Originals or photocopies of any of the following documents to substantiate the right to claim property:
      1. death certificate;
      2. birth certificate;
      3. marriage license of claimant or decedent;
      4. complete last will and testament or letter from the Clerk of District Court stating there is no will or probate record on file;
      5. insurance policy;
      6. document establishing trust;
      7. power of attorney;
      8. indemnity bond;
      9. articles of incorporation;
      10. final account of decree of distribution;
      11. valid driver's license;
      12. social security card;
      13. voter registration card;
      14. court document showing appointment as personal representative, executor, executrix, conservator, etc.;
      15. affidavit of authority to receive and disburse funds for the company;
      16. affidavit for collection of personal property of decedent;
      17. proof of federal identification number;
      18. proof of address;
      19. disposition of stock; and
      20. decedent's family history.
4. The department may deleted: require any, end deleted inserted: request, end inserted other documents as inserted: is reasonably, end inserted necessary deleted: provided in (3), end deleted to verify deleted: the, end deleted inserted: a, end inserted claim inserted: under (3), end inserted.

Authorizing statute(s): 70-9-828, MCA

Implementing statute(s): 70-9-815, 70-9-825, MCA

Reasonable Necessity Statement

In addition to the department’s general statement of reasonable necessity, the department proposes to amend ARM 42.38.305(1) to change “must” to “may” in describing an owner’s ability to claim property delivered to the department; and to expressly state that the department may waive the requirement for an owner’s submission of a claim form when the criteria in 70‑9‑815, MCA, as amended by HB 88, are satisfied.  The proposal to strike (1)(a) is necessary because HB 88 made this previous condition obsolete.

The department also proposes revisions to (4) which aim to make supplemental information requirements easier for claimants to understand and follow.

Small Business Impact

With regard to the small business impact analysis requirements of 2-4-111, MCA, as amended by HB 592 (2025), the department has analyzed the proposed rulemaking and the groups or class of businesses directly affected by this rulemaking if they meet the definition of a small business under 2-4-102(13), MCA.

The department contends that any direct small business impact does not arise from the proposed rulemaking but from the legislature’s enactment of HB 88 and the revision or clarification of the rules does not create any new requirements.

Documentation of the small business impact analysis is available upon request.

Bill Sponsor Notification

The primary bill sponsor of House Bill 88 was contacted by electronic mail on May 20, 2026, and again on June 30, 2026.  The department received no comments from the bill sponsor to incorporate into the proposal notice.

Interested Persons

The Department of Revenue maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency.  Persons who wish to have their name added to the list shall make a written request, which includes the name and e-mail or mailing address of the person to receive notices and specifies that the person wishes to receive notice regarding particular subject matter or matters.  Notices will be sent by e-mail unless a mailing preference is noted in the request.  A written request may be mailed or delivered to the contact person in this notice or may be made by completing a request form at any rules hearing held by the Department of Revenue.

Rule Reviewer

Todd Olson

Approval

Brendan Beatty, Director of Revenue