Mich. Admin. Code R 567.3 — Authority of administrator; selection factors for examination

Rule 3. (1) The administrator or his or her designee shall ha ve sole authority to select a
person for examination or to participate in an examination of t hat person commenced by another
state. Factors that may be consid ered in determining whether t o commence an examination or
participate in an examination in itiated by another state includ e, but are not limited to, the
following:
(a) Value of the person’s assets.
(b) Annual sales volume of the person.
(c) The reporting history of the person.
(d) Mergers, takeovers, stock splits, sales, exchanges, liqui dations, acquisitions, or other
changes in equity.
(e) Evidence or complaints of failure by the person to send w ritten notice under section
18(5) of the act to the apparent owner of property presumed aba ndoned or other complaints filed
by property owners or other interested parties.
(f) The person has not been previously subject to an examination by the state.
(g) Examinations or other information indicate a trend or pra ctice of failing to report the
presumed abandonment of certain types of property within the pe rson’s industry or business
sector.
(h) The extent of the person’s operations in this state includi ng employees, vendors,
stockholders, customers, and account holders.
(i) Whether an examination has been initiated by another state or more than 1 state.
(2) If the person selected for examination has information th at the selection was not based
on the criteria in subrule (1) of this rule or other factors that would reasonably subject a person to
examination, the person shall provide the information to the ad ministrator. The administrator
will review the information and if the information supports the person’s claim that the selection
was based on factors that would not reasonably subject a person to examination, the
administrator will discontinue the examination. However, the p erson may still be subject to an
examination for the same property types and periods if at a lat e r t i m e , t h e p e r s o n i s s e l e c t e d
based on the criteria in subrule (1) of this rule or other fact ors that would reasonably subject a
person to examination.