Overview

Florida SB 1452 makes substantial revisions to the state's unclaimed property law. The legislation revises some definitions, updates due diligence requirements, expands electronic communications, revises treatment of securities and virtual currency, strengthens claimant representative regulation, and enhances enforcement authority.

Key Provisions and Changes

Replaced the term "unclaimed property" with the term "abandoned property" and added a definition of abandoned property.

The comprehensive definition of "abandoned property" requires:

  • Expiration of the applicable dormancy period;
  • Completion of holder due diligence; and
  • No owner response demonstrating continued interest.

The bill formally distinguishes between:

  • Presumed abandoned (dormancy period expires), and
  • Deemed abandoned (due diligence completed without response).

Added a definition for authorized representative which includes persons legally authorized to act for an owner, including:

  • Agents
  • Fiduciaries
  • Personal representatives
  • Trustees
  • Guardians
  • Legal heirs
  • Other legally authorized representatives.

Broadened key definitions such as holder, owner, business association, and banking organization to better cover modern business structures.

Updated Due Diligence Requirements

Before reporting property, holders must:

  • Send notice at least 90 days and not more than 180 days before filing reports for property valued at $50 or more;
  • Use first-class mail or email, where permitted; and
  • If the value of the property is greater than $1,000, send a second notice by certified mail.

Due diligence notices must include:

  • A heading that includes a required 'notice'
  • A description of type and nature of the property
  • The value of the property, unless it does not have a fixed value
  • The following statements:
    • The property will be transferred to the Florida Department of Financial Services if no response is received;
    • Noncash property will be sold or liquidated;
    • Once the property is turned over to the department, a claim must be filed with the department;
    • The property is currently with the holder and the owner may prevent transfer of the property by contacting the holder; and
    • For virtual currency, the asset will be liquidated before remittance to the state.

Updated Reporting Requirement

The report must be signed by or on behalf of the holder and verified as to its completeness and accuracy, and the holder must state that it has complied with the due diligence requirements.

Securities and Investment Property Revisions

Adds definition for non-freely transferable security. Includes securities that:

  • Cannot be delivered through DTCC or a similar depository;
  • Cannot be delivered because there is no agent to effect transfer; or
  • Are worthless securities.

Creates exemptions for:

  • Non-freely transferrable securities; and
  • Securities subject to liens, legal hold, or restrictions preventing transfer or sale.

New Abandonment Standards

Property is presumed abandoned on the earliest of:

  • Three years after a first-class mailing is returned undelivered;
  • Five years after the owner's last demonstrated indication of interest; or
  • Two years after the owner's death.

New 10 Year Dormancy Period

Equity interests and securities accounts may not be presumed abandoned solely because of inactivity if the holder knows the owner's location.

  • A holder must perform data matching to identify updated owner address information and indicators of deceased status;
  • A holder must communicate with the owner at least annually by first-class mail or electronic means;
  • Such communication is successfully delivered; and
  • An owner indication of interest occurs at least once every 10 years.

Owner indication of interest includes:

  • Owner initiated activity, such as authenticated access to account;
  • Updated contact information received through an authorized financial advisor;
  • Responses to account notifications or alerts;
  • Negotiation of distributions, including dividends; or
  • Any other action by the owner or authorized representative which reasonably demonstrates interest in the property.

Automatic deposits, reinvestments, or other recurring transactions initiated by the holder do not constitute an indication of interest.

Property is presumed abandoned only after reasonable efforts have been made to locate the owner and the holder has complied with due diligence requirement.

This subsection applies to equity interests and securities held directly by the owner or indirectly through a brokerage or similar account.

Changes in Dormancy Periods

The following dormancy periods were increased from 3 to 5 years:

  • Unmatured or unredeemed debt, other than a bearer bond or an original issue discount bond
  • Matured or redeemed debt

New Email Contact Requirement

If the holder does not send communications annually by first call mail, it must attempt to confirm owner interest by email within 3 years after the last owner activity. If:

  • No email address exists;
  • The email bounces; or
  • The owner fails to respond

The holder must then attempt contact by first-class mail.

Virtual Currency

The bill expressly incorporates virtual currency into Florida's unclaimed property law.

  • The bill amends the definition of "intangible property" to specifically include virtual currency.
  • The dormancy period is extended from 5 years to 7 years.
  • Due diligence notice must disclose that virtual currency will be liquidated before it is remitted to the department.
  • Holders must liquidate virtual currency before remittance. Only the cash proceeds are remitted to the state.

Claimant Representatives

New definitions were added or edited:

  • Claimant representative definition expressly excludes locators who engage in locating owners of abandoned property for a fee but are not registered with the department
  • Locator refers to a person or business that locates owners of abandoned property for a fee. Locators are not employees of the state and are not registered with the department.

Clarifies registration requirements and oversight of claimant representatives. Including disclosure obligations, minimum activity thresholds, notarization, and consumer-protection safeguards.

Claims

The bill creates detailed procedures governing claim withdrawals and conflicting claims.

Department Requirements

Department was previously required to attempt outreach to owners with a value of more than $250. This was updated to include property valued at $50 or more, tangible property, and abandoned share of stock.

Department is required to include values greater than $10 on its website.

Clarifies notice requirements.

 

The legislation also:

  • Clarifies treatment of joint accounts and survivorship interests.
  • Revises handling of safe-deposit box contents and associated penalties.
  • Exempts most gift certificates and credit memos from reporting while preserving certain exceptions.