Unclaimed Property Legislative Updates

Enacted Laws

Arizona: SB 1097 (effective 12/31/17)
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. An owner or heir must file a claim prior to 35 years after the end of the fiscal year in which the state received the property.

Kentucky: HB 394 (effective 7/13/2018)
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. It should be noted that although the bill was inspired by RUUPA, there are some significant deviations as well.  

Missouri: HB 1879 (effective 8/28/2018)
On January 3, 2018, Missouri enacted HB 1879 (companion bill SB 769) which states banking and financial organizations are 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. Notice may be delivered by first class mail with postage prepaid and marked "Address Correction Requested" or may be delivered electronically if the consumer has consented to receiving electronic disclosures. Additionally, annual statements should also be issued to accounts with inactivity of twelve months or more.

South Dakota: SB 45 (effective 7/1/2018)
In March of 2017, South Dakota (SB 34) decreased the amount of time the administrator must hold all stocks, bonds and other negotiable instruments to ninety days.  At the time, several industry groups wrote letters and contacted the state advocating for longer holding periods to allow for greater protection of the consumer. On February 8, 2018, SB 45 was enacted which increases the holding period to 180 days.

Tennessee: HB 2278 (effective 4/24/2018)
On April 24, 2018, Tennessee HB 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. The transition will be as follows: 

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Proposed Laws

Illinois: SB 2901
On February 14, 2018, Illinois proposed SB 2901 which would amend the recently passed Illinois Revised Uniform Unclaimed Property Act. If passed, dormancy periods would increase from three years back to five years for several property types. SB 2901 would reduce the period of limitation from ten years to five years and add a period of repose for ten years after the duty to file arose. The bill also proposes to add a business to business exemption back into Illinois law. The methodology for estimating past due amounts when the holder fails to retain the correct records required by the Illinois RUUPA would be modified to allow for the use of estimation techniques that conform to either generally accepted auditing standards or generally accepted accounting principles. If passed, SB 2901 would prohibit the use of third party contingency fee audit firms. 

Pennsylvania: SB 1058
On February 27, 2018, Pennsylvania proposed SB 1058 which would add a dual reporting requirement for securities which includes the “lost” and no contact standards.  Contact includes an increase or decrease in the principal; accepted payment of principal or income; or any other indication of interest in the property or in other property of the owner in the possession, custody, or control of the holder. Additionally, SB 1058 defines the date on which the holder has “lost contact” with the owner as: the date a second consecutive communication sent by the holder by first class United States mail to the owner is returned to the holder undelivered by the United States Postal Service; or if the second communication is made later than thirty days after the first communication is returned, the date the first communication is returned undelivered to the holder by the United States Postal Service. For securities owners that do not receive communications from the holder by U.S. mail, the holder must attempt to confirm the owner’s interest in the property by sending an email to the owner no later than two years from the date of the last indication of interest. If the owner does not respond within thirty days, the holder must send a notification by first class mail. If the mail is returned undeliverable, the holder is deemed to have lost contact with the owner on the date of the owner’s last indication of interest in the property.    

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