Stay up to date with changes to unclaimed property legislation — check this page for alerts on litigation, policy, and regulation.
April 6, 2020
Delaware Secretary of State (SOS) issues alert
The Delaware SOS issued an alert regarding the February 2020 Voluntary Disclosure Agreement (VDA) invitations and all communications — holders who received an invitation from the SOS to join the VDA Program during February 2020 will be allowed to join the SOS VDA Program through May 22, 2020.
February 27, 2020
Illinois proposes two additional unclaimed property bills - IL HB 4813 and SB 3455
On February 11, 2020, the Illinois House introduced HB 4813 which amends the Revised Uniform Unclaimed Property Act in various sections including when financial organization deposits are deemed abandoned, linking accounts for the purpose of contact with the owner, notice provided by the administrator, and examinations of state-regulated financial organizations.
On February 14, 2020 the Illinois Senate introduced SB 3455 which amends the Revised Uniform Unclaimed Property Act Section 15-210 - Indication of apparent owner interest in property.
February 25, 2020
Nebraska proposes a reduction of dormancy periods - NE LB 1108
On January 22, 2020 Nebraska introduced LB 1108 which proposes changes to several provisions relating to the Uniform Disposition of Unclaimed Property Act. Most of the updates are related to the reduction of dormancy periods from five to three years.
February 10, 2020
Illinois proposes age 72 as a retirement account trigger - IL HB 4573
On February 5, 2020, the Illinois House of Representatives introduced HB 4573 which proposes to revise the Uniform Unclaimed Property Act in several sections. Among other revisions, Illinois is the first state to revise their provision for the presumption of abandonment of tax-deferred retirement accounts to increase the age from 70.5 to 72 as a result of the SECURE Act passage in December of 2019.
February 7, 2020
Maine transitions to a gift card exemption – ME HB 1164
On January 30, 2020, Maine enacted HB 1164 which amends Section 2067.2 of the Maine Revised Unclaimed Property Act. Previously, the amount unclaimed on an abandoned gift obligation was 60% of the net obligation value at the time it was presumed abandoned. Under HB 1164, the amount unclaimed will be phased out until the calendar year 2022 and thereafter at which time the amount unclaimed will reach 0% of the net obligation value.
January 6, 2020
Unclaimed property impacts of federal tax bill signed into law - HR 1865
On December 20, 2019 President Trump signed HR 1865 (Further Consolidated Appropriations Act) into law. Among many other tax law changes, the new law also created the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 which impacts the taxation of retirement accounts and will have unintended impacts on the escheatment of abandoned retirement accounts.
December 12, 2019
NAUPA provides guidance on reporting IRA tax withholding on the NAUPA file
IRS Revenue Ruling 2018-17 goes into effect January 1, 2020 which requires holders to deduct the mandatory 10% withholding tax from Individual Retirement Accounts (IRAs) escheated to state unclaimed property programs.
September 16, 2019
Pennsylvania Treasury Issues a Reminder of 2016 Policy Guidance for Reporting Standards of Fiduciary Accounts
On September 11, 2019 the Pennsylvania Treasury office issued a reminder to unclaimed property stakeholders that the existing Policy Guidance, Reporting Standards for Fiduciary Accounts remains in effect.
August 20, 2019
Oregon transfers unclaimed property administration to the State Treasurer – OR SB 454
Oregon recently passed this law which transfers the duties, functions and powers of the Department of State Lands to the State Treasurer.
August 15, 2019
Illinois adds a provision for claims of decedent's property less than $100 - IL SB 1614
In early August, Illinois passed SB 1614 which adds a provision to Section 15-904. The provison states that the administrator must honor claims by decedent's heir or agent for property not exceeding $100.
June 27, 2019
Maine adopts RUUPA Inspired Act - ME S491
Inspired by the Revised Uniform Unclaimed Property Act (RUUPA) of 2016, Maine S 481 overhauls the previous unclaimed property act. The Act takes effect October 1, 2019.
June 21, 2019
Nevada Revises its Unclaimed Property Act - NV S 44
In early June, Nevada passed SB 44 into law. This bill revises Nevada’s Uniform Unclaimed Property Act to reflect specific changes adopted by the 2016 Revised Unclaimed Property Act (RUUPA).
June 18, 2019
New York Proposes to Amend the Abandoned Property Law – NY A 8314
This bill proposes to include virtual currency within the scope of property covered in the law, reduce the dormancy period for wages and authorize the promulgation of regulations to recognize electronic communications as written contact.
June 7, 2019
NAUPA’s Perspective on Holder Compliance
The National Association of Unclaimed Property Administrators (NAUPA) held its annual conference in May as part of the National Association of State Treasurers (NAST) Conference. Two solutions were offered to bridge the compliance gap: more formal Voluntary Disclosure Agreement (VDA) programs and more audits.
May 23, 2019
Delaware continues to send invitations to join the Secretary of State VDA program
On May 20, 2019, the SOS office announced that they will be sending another round of letters inviting companies to enter the VDA program very soon. The letter encourages companies to enroll in the SOS VDA Program to facilitate compliance with Delaware’s Abandoned Property Law.
May 21, 2019
Colorado enacts the Revised Uniformed Unclaimed Property Act – CO SB 88
Colorado enacted the Revised Uniform Unclaimed Property Act which overhauls the prior Colorado Unclaimed Property Act.
March 12, 2019
West Virginia allows account linkage for financial organizations – WV HB 2609
This bill expands the indication of interest provision relating to the presumption of abandonment.
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February 15, 2019
Arkansas proposes immediate liquidation of securities – AR HB 1427
If passed, the bill will allow the state administrator to sell securities immediately upon receipt from the holder.
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January 25, 2019
West Virginia proposes to define and include provisions for the escheat of U.S. savings bonds – HB 2193
This bill proposes to amend the Code of West Virginia by adding a definition of a United States savings bond, a new section 36-8-2a Escheat of United States savings bonds and provisions for the state administrator to redeem the savings bonds and deposit the balance.
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January 22, 2019
Oregon proposes multiple bills to revise the Uniform Disposition of Unclaimed Property Act – SB 454, HB 2273 and HB 2274
These proposed bills, if passed, would lead to a shorter dormancy period for wages, would require certain holders to implement electronic communication for due diligence and may change reporting instructions in the future.
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November 21, 2018
IRS extends compliance date for Rev. Rul. 2018-17 – Notice 2018-90
This Notice provides an extension for the transitional relief under the original Ruling. The relief is extended to payments made before the earlier of January 1, 2020, or the date it becomes reasonably practicable to comply with the withholding and reporting requirements.
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November 7, 2018
Ohio excludes gift cards, open loop prepaid cards and rewards cards from Unclaimed Property Law – OH HB 353
This bill clarifies the conditions which must be met in order to exempt gift cards from unclaimed property reporting. It also adds the exemption of open-loop prepaid cards and rewards card.
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August 20, 2018
The Latest Unclaimed Property Updates from Delaware
Pam Wentz sits down with Delaware State Escheator Brenda Mayrack to discuss new enforcement of Delaware's Voluntary Disclosure (VDA) program. Delaware will now initiate an audit of all companies that do not enroll in the VDA.
July 26, 2018
Significant Unclaimed Property Case Decided In Favor Of Thrivent Financial For Lutherans
In a landmark case, the court agreed with the Plaintiff’s arguments that the Controller’s Office had adopted two regulations without following the procedural requirements of the California Administrative Procedure Act (APA).
July 16, 2018
Missouri Passes Notification Requirements for Banking and Financial Organizations – MO SB 769
Under the new provision, banking and financial organizations are now required to notify the person or depositor of any consumer deposit account which has been inactive for twelve or more months and to which inactivity fees apply.
July 11, 2018
Pennsylvania Codifies Policy Guidance Issued In February 2017 to Amend the Presumption of Abandonment for Securities – PA HB 1929
Pennsylvania law now contains a dual reporting requirement for securities which includes the “lost” and no contact standards.
July 3, 2018
IRS issues guidance for reporting funds escheated from an IRA account – Rev. Rul. 2018-17
The ruling clarifies that property in an IRA which is escheated to the state meets the definition of a designated distribution, under § 3405 of the Internal Revenue Code (IRC) - and therefore is subject to applicable tax withholding and reporting to the IRS.
June 28, 2018
North Dakota Proposes Administrative Rules Impacting Unclaimed Property Reporting and Owner Claims – Article 85-03
North Dakota has proposed administrative rule changes that will have an impact on unclaimed property reporting and the owner claims process.
May 24, 2018
Missouri updates notification requirements for consumer accounts - MO SB 769
Missouri SB 769 (the companion bill to HB 1879) has passed 2nd chambers to repeal sections 30.270, 67.085, 95.530, 110.010, 110.080, 110.140, 165.221, 165.231, 165.241, and 165.271, RSMo, and to enact, in lieu thereof, thirteen new sections relating to financial institutions.
May 1, 2018
Tennessee updates unclaimed property report due dates and periods covered – TN HB 2278
On April 24, 2018, Tennessee SB 2278 (the companion bill to SB 1859) was enacted to amend Section 66-29-125 of the Tennessee Unclaimed Property Act. The report due date will move Tennessee from a spring reporting state to a fall reporting state.
April 24, 2018
Kentucky Enacts RUUPA Inspired Bill - KY HB 394
On April 13, 2018, Kentucky enacted HB 394. Inspired by the Revised Uniform Unclaimed Property Act (RUUPA), HB 394 overhauls the Kentucky Unclaimed Property Law.
April 12, 2018
Louisiana proposes limiting owner claims to thirty years – LA HB 851
On April 4, 2018, Louisiana proposed HB 851 which will limit the amount of time an owner has to claim their property from the state. Section 167 (Filing claim with administrator) has been updated to limit the amount f time an owner or heir can file a claim to 30 years from the date the property is paid or delivered to the administrator.
April 5, 2018
Arizona Restricts Owner Claims and Recovery of Unclaimed Property - AZ SB 1097
On March 23, 2018, Arizona enacted SB 1097 which will limit the amount of time an owner has to claim their property from the state. Section 44-317 (filing a claim with department) has been updated to limit the amount of time an owner or heir can file a claim to 35 years after the end of the fiscal year in which the state received the property.
March 28, 2018
California Proposes Formal VDA Program through January 1, 2024 - AB 2773
If passed, holders with past due property will be able to come into compliance without fear of penalties and interest being assessed. Companies and financial organizations will have the opportunity to conduct a thorough review of their records to determine if they are holding past due property with a last known address in California.
March 20, 2018
Pennsylvania Proposes Amendments to Presumption of Abandonment Requirements for Business Associations (Securities) - SB 1058
On February 27, 2018, Pennsylvania proposed SB 1058 which would amend Section 1301.6 of the Pennsylvania Disposition of Abandoned and Unclaimed Property Law, consistent with the Policy Guidance previously issued. If passed, SB 1058 will add a dual reporting requirement for securities which includes the “lost” and no contact standards.
February 23, 2018
Illinois Proposes Amendments to the Revised Uniform Unclaimed Property Act – SB 2901
On February 14, 2018, Illinois proposed SB 2901 which would amend the recently passed Illinois Revised Uniform Unclaimed Property Act. Potential impacts of SB 2901 include increased dormancy periods and changes in policy to the statute of limitation and repose, business to business exemptions, estimation techniques, and third-party contingency auditors.
February 13, 2018
South Dakota increases state holding period for securities – SB 45
On February 8, 2018, SB 45 was enacted which increases the holding period to 180 days. While this is an improvement over the prior law, industry has advocated for a holding period of at least three years.
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January 31, 2018
Tennessee proposes to revise reporting due dates – SB 1859
On January 24, 2018, Tennessee SB 1859 was introduced to amend Section 66-29-125. If passed, the report due date will move Tennessee from a spring reporting state to a fall reporting state.
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January 8, 2018
Pennsylvania releases policy guidance to support a returned mail trigger for securities
Pennsylvania Treasury, Bureau of Abandoned and Unclaimed Property issued Policy Guidance to promote consistency in reporting standards for property in a security (Section 131.6(2)). The guidance also includes related property such as dividends, profit, distributions, payment or distributive share of principal held by a business association (1301.6(3)).
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