District of Columbia Courts Unclaimed Deposits, B-286687, April 13, 2001

B-286687 Apr 13, 2001 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights DIGEST The District of Columbia Courts are required. What the proper mechanism is for lawful owners to file claims upon these funds. We conclude that the Courts are required to deposit the unclaimed deposits in the United States Treasury and should use the mechanism provided by 31 U.S.C. Property held by public officers that remains unclaimed by the owner for more than one year is presumed abandoned. Is not necessarily limited to. Funds coming into the Courts were already going into the District of Columbia Treasury pursuant to D.C. The Courts ask what procedures are appropriate for rightful owners to make claims upon the funds. The Revitalization Act is silent as to the reclamation of unclaimed deposits. View Decision Matter of: District of Columbia Courts Unclaimed Deposits File: B-286687 Date: April 13, 2001 DIGEST DECISION The District of Columbia Courts request an advance decision on the proper disposition of unclaimed deposits currently held in the accounts of the Courts in the District of Columbia Treasury, and if current legislation requires the unclaimed deposits to be deposited in the United States Treasury, what the proper mechanism is for lawful owners to file claims upon these funds. We conclude that the Courts are required to deposit the unclaimed deposits in the United States Treasury and should use the mechanism provided by 31 U.S.C. Secs. 1321 and 1322 (dealing with trust funds and payments of unclaimed trust fund amounts), in consultation with the United States Treasury, to enable lawful owners to file claims for the unclaimed deposits. BACKGROUND The District of Columbia Court Reform and Criminal Procedure Act of 1970 (Court Reform Act) transferred jurisdiction over all local judicial matters to a unified court system for the District. The Court Reform Act required fiscal officers in the District of Columbia court system to deposit in the United States Treasury all fines, forfeitures, fees, unclaimed deposits, and other moneys. Pub. L. No. 91-358, title I, Sec. 111, 84 Stat. 511 (1970) (now codified as D.C. Code Sec. 11-1723(a)(2)). In 1973, the District of Columbia Self-Government and Governmental Reorganization Act (Home Rule Act) established that all money received by any agency, officer, or employee of the District in its or his official capacity belonged to the District government and had to be paid promptly to the Mayor for deposit in the appropriate fund. Pub. L. No. 93-198, 87 Stat. 774 (1973), D.C. Code Sec. 47-130. The District of Columbia Courts interpreted this as effectively suspending D.C. Code Sec. 11-1723(a)(2) and began depositing all receipts, including fines, fees, forfeitures, and unclaimed deposits, with the District of Columbia government. The District of Columbia Courts periodically deposited the unclaimed deposits, resulting, for example, from unclaimed escrow funds in civil, family and criminal cases and inheritance of heirs and legatees, into special accounts established by the District of Columbia Treasury. These funds currently remain available for distribution to claimants who establish a right to the funds. In 1981, the District of Columbia enacted a Uniform Disposition of Unclaimed Property Act. D.C. Code Secs. 42-201--42. Under the District's Unclaimed Property Act, property held by public officers that remains unclaimed by the owner for more than one year is presumed abandoned, D.C. Code Sec. 42-212, and must be paid and delivered to the Mayor. D.C. Code Sec. 42-219. Rules issued by the Mayor under the authority of the Unclaimed Property Act provide that "[for] the purposes of [D.C. Code Sec. 42-112], unclaimed property shall include, but is not necessarily limited to, escrow funds, condemnation awards, and missing heir funds." The District of Columbia assumes custody and responsibility for the safekeeping of the property, and pays claims made thereon. D.C. Code Sec. 42-220. The act gives the District of Columbia custody in perpetuity of unclaimed funds, but ownership of the property does not transfer to the District of Columbia government. Rightful owners can file a claim for the funds or property without time limitation. As noted earlier, prior to enactment of the Unclaimed Property Act, funds coming into the Courts were already going into the District of Columbia Treasury pursuant to D.C. Code Sec. 47-130. Since D.C. Code Sec. 47-130 required that all money received by any agency, officer, or employee of the District shall be paid promptly to the Mayor for deposit in the appropriate fund, the Courts did not address the application of the Unclaimed Property Act to the District of Columbia Courts. However, in 1997, the National Capital Revitalization and Self-Government Improvement Act of 1997 (Revitalization Act) amended D.C. Code Sec. 47-130.