February 2021 │ Legislation & Regulation Update

Compiled by:
Suzanne Darling

The Unclaimed Property Legislative Alert

Summary of Legislation — Week Ending February 26, 2021

CALIFORNIA:  Assembly Bill 1208. Introduced legislation allows the Controller to take steps to streamline the payment of claims.
COLORADO:  Senate Bill 21-121. Introduced legislation modifies various provisions of the Revised Unclaimed Property Act relating to property in a financial organization.
ILLINOIS:  House Bill 2823. Introduced legislation includes certain automatic transactions as owner interest in property.

LOUISIANA:  Senate Bill 14 (prefiled). Introduced legislation exempts certain unclaimed property owner and claimant information from disclosure under the Public Records Law.
NORTH CAROLINA:  House Bill 156. Introduced legislation extends the time within which the Treasurer is required to sell non-securities property and increases the amount that may be paid to an owner without the filing of a claim.
RHODE ISLAND:  House Bill 5759. Introduced legislation provides that surplus funds from the sale of a watercraft to satisfy a storage lien are reportable as unclaimed property.

TEXAS:  House Bill 1981. Introduced legislation permits the Comptroller to pay a claim by a person with a limited power of attorney that authorizes the person to receive the property.
WEST VIRGINIA:  Senate Bill 403. Introduced legislation requires the reporting of amounts owed to unknown or unlocatable timber interest owners as unclaimed property.
WYOMING:  Senate File 102. Introduced legislation provides that certain unclaimed utility cooperative refunds may be retained by the cooperative and are not reportable as unclaimed property.

INDIANA:  Senate Bill 188 (as amended, passed Senate). Amended legislation makes certain changes to pending RUUPA legislation, including reinstating the business-to-business exemption from existing law, enacting an exemption for gift cards and stored value cards that meet certain criteria, and significantly limiting the bill’s original transitional provision. This bill has passed the Senate and moved to the House.
NORTH DAKOTA:  Senate Bill 2048 (as amended, passed Senate). Amended legislation makes certain changes to pending RUUPA legislation, including changing the dormancy period for a payroll card from one year to five years and eliminating certain provisions relating to DMF matching in insurance examinations. This bill has passed the Senate and moved to the House.

Summary of Legislation — Week Ending February 19, 2021

FLORIDA:  House Bill 1089. Introduced legislation requires information sharing between the Department of Financial Services and the Department of Revenue in order to facilitate claims for the recovery of past due child and spousal support funds.
OHIO:  House Bill 110. Introduced legislation modifies the state’s hold harmless and release from liability provision. A process for paying certain small claims is established.
WEST VIRGINIA:  Senate Bill 318. Introduced legislation repeals the requirement for newspaper publication of owner names and addresses by the Administrator.

Summary of Legislation — Week Ending February 12, 2021

ALABAMA:  Senate Bill 201. Introduced legislation increases the dormancy period for funds from a prepaid college tuition program contract that is not used or terminated.
CALIFORNIA:  Assembly Bill 466. Introduced legislation authorizes the Franchise Tax Board to provide to the Controller certain information about holders’ past unclaimed property filings.
CALIFORNIA:  Senate Bill 308. Introduced legislation requires that holder payments of $2,000 or more be made by electronic funds transfer.

ILLINOIS:  House Bill 851. Introduced legislation modifies the abandonment and reporting of automatically renewable time deposit accounts and sets some general rules for examination of a federally chartered bank or credit union.
ILLINOIS:  House Bill 854. Introduced legislation requires the liquidation of virtual currency prior to reporting, applies provisions for abandonment of tax-deferred retirement accounts to tax-exempt retirement accounts, and allows for information sharing with additional state agencies.

MAINE:  Legislative Document 420. Introduced legislation makes fee restrictions inapplicable to certain stored-value obligations. An automatic reinvestment of dividends or interest or automatic withdrawal of disclosed fees is not an indication of owner interest in property.
MASSACHUSETTS:  House Document 1471. Introduced legislation requires insurance companies to compare policies, annuities, and retained asset accounts to the death master file, attempt to locate beneficiaries, and report unclaimed funds to the Commonwealth as unclaimed property.
NEW YORK:  Assembly Bill 4629. Introduced legislation eliminates most fees and expiration dates on gift certificates.

NORTH DAKOTA:  House Bill 1366. Introduced legislation provides that excess proceeds from a foreclosure sale shall be reported as unclaimed property if not claimed within 90 days of the sale.
SOUTH CAROLINA:  House Bill 3849. Introduced legislation enacts a version of the Revised Uniform Unclaimed Property Act (“RUUPA”). This is a modified version of RUUPA.
ARKANSAS:  House Bill 1109 (effective 90 days after adjournment). Enacted legislation reduces the amount the Administrator is required to transfer annually to the general revenues of the State.

Summary of Legislation — Week Ending February 5, 2021

ILLINOIS:  Senate Bill 62. Introduced legislation changes what constitutes apparent owner interest in an account at a financial organization.
NEW YORK:  Senate Bill 3467. Introduced legislation eliminates most fees and expiration dates on gift certificates.

TENNESSEE:  House Bill 469. Introduced legislation amends the criteria for abandonment of a pension or retirement account. The aggregate reporting amount is reduced to $25.
TEXAS:  House Bill 1514. Introduced legislation incorporates unclaimed property reporting and delivery requirements found elsewhere in state law into the unclaimed property law. The Comptroller may waive the claim filing requirement and pay a person directly if certain requirements are met. In addition to the locator’s 10% fee, a locator agreement may include reasonable attorney’s fees to pursue the claim.
OHIO:  Senate Bill 276 (effective April 12, 2021). Enacted legislation allows reported funds from attorney trust and similar accounts to be used by the Ohio Access to Justice Foundation for legal aid and access to justice purposes subject to repayment upon claim by the owner.

Summary of Regulations — Week Ending February 5, 2021

MISSISSIPPI:  Title 38, Rule 4.2 Miss. Admin. Code (effective March 4, 2021). Final regulations permit electronic filing of claims.

With The Unclaimed Property Legislative Alert Summary of Legislation and Regulation, you receive an overview of the latest information on unclaimed property legislative updates, regulatory changes, and statutory amendments across the United States and Canada. The publicly available information contained herein has been compiled by Kelmar Associates, LLC and does not constitute legal advice or analysis of any kind.  The summary information is generally compiled on a weekly basis, as applicable, and is shared on Kelmar's website each month. For more information, please refer to each state unclaimed property bill.