HB 2112

ON MARCH 19, 2026, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 2642, AS AMENDED. AMENDMENT #1 r ewrites this bill to establish a process to notify a charitable organization that it has been designated as a beneficiary in an instrument that provides for payment or transfer at death without probate. If the holder of property that has a beneficiary designation has been notified of the death of the owner of the property, then this amendment requires such holder to, within 10 business days, use commercially reasonable efforts to provide to each charitable organization listed under the beneficiary designation n otice that the charitable organization may have a right to the property and t he holder's contact information. If a charitable organization is a beneficiary of an interest in property created by beneficiary designation, then this amendment authorizes the charitable organization to present an affidavit to the holder of the property or to another person with information about the property for the purpose of obtaining the property or information regarding the property. The full text of this amendment specifies the information and supporting documentation that must be included with the affidavit . This amendment gener ally prohibits the holder of property that is the subject of a beneficiary designation to a charitable organization from requiring a board member or employee of the charitable organization to provide various types of personal identifying information and f inancial information. Where one o r more charitable beneficiaries have submitted a complete affidavit, this amendment requires the holder of property to distribute the proceeds no later than the following, whichever occurs first: ( 1 ) Ninety days after the receipt of the first complete affidavit; or ( 2 ) Thirty days after receipt of all required affidavits from identifiable beneficiaries. The full text of this amendment specifies various accounting actions that must occur when property is transferred pursuant to this amendment. The holder of the property or a person who in good faith delivers the property or information requested in reliance on information provided by a charitable organization and who does not have knowledge that the representations contained in the affidavit are incorrect, is not liable to any person for delivering the property or information, and may assume without inquiry the existence of the facts contained in the affidavit. T his amendment also specifies that it does not create a presumption that a holder of property who in good faith delivers property or information to a charitable organization named as a beneficiary based on less than the full documentation listed above has been negligent. This amendment requires a n entity or individual who receives a request for property or information from a charitable organization to verify the charitable organization's authority within 30 days from the date of delivery of the affidavit. A right or title acquired from the charitable organization in consideration of the provision of property or information under this amendment is not invalid in consequence of misapplication by the charitable organization. A transaction or lien created by a transaction entered into by the charitable organization and a person acting in reliance on the affidavit provided by the charitable organiz ation is enforceable against the property that the charitable organization has requested. If t he holder of a property refuses to provide the requested property or information within 30 days after receiving a complete affidavit and all required accompanying documentation from a charitable organization, then the charitable organization may bring an action against the holder of the property to recover the property, receive the information, or compel the delivery of the property. An y such action must be brought within one year after the date of the act or failure to provide the requested property or information. If the court finds that the holder of the property acted unreasonably in failing to deliver the property or information as requested in the aff idavit, then the court may aw ard to the charitable organization a ctual damages , p unitive damages of $500 to $10,000 , a nd c ourt costs and reasonable attorney fees. This amendment specifies that it does not apply to insurance policies and annuities.