[Congressional Record Volume 140, Number 96 (Thursday, July 21, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: July 21, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                         ADDITIONAL STATEMENTS

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                       EQUITABLE ESCHEATMENT ACT

 Mr. DeCONCINI. Mr. President, on November 23 of last year I 
became one of 80 cosponsors of S. 1715, the Equitable Escheatment Act. 
This bill would overturn the unreasonable decision of a divided Supreme 
Court in Delaware versus New York and would allow Arizona and 46 other 
States to receive their fair share of more than $100 million of 
unclaimed dividends and interest annually that New York and Delaware 
are now escheating.
  On March 30, 1993, the Supreme Court held that the State of 
incorporation of the holder--rather than the issuer--of owner unknown 
unclaimed securities distributions is entitled to escheat such 
distributions. I believe that the Court recognized the incongruity of 
this position and that is why they invited those States adversely 
affected by the ruling to appeal to Congress for a just resolution. S. 
1715 provides just such a resolution.
  Virtually all large brokerage firms are incorporated in Delaware; the 
largest depository is incorporated in New York; and most money center 
banks are rechartered in New York. Consequently, taxes paid by 
Arizonans to pay interest on Arizona State bonds, and dividends paid by 
companies headquartered in Arizona are escheated by Delaware and New 
York--not Arizona.
  It is my understanding that negotiations are ongoing to resolve this 
matter. However, I am somewhat frustrated that progress with New York 
is apparently slow. I encourage all States involved to reach a swift 
compromise and work out an equitable settlement. If such a settlement 
cannot be reached I believe that the Senate should and will impose such 
a settlement.

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