June 2025 │ Legislation & Regulation Update

The Unclaimed Property Legislative Alert

Summary of Legislation — Week Ending June 6, 2025

COLORADO: Enacted HB 1224 which (1) clarifies treatment of legacy preneed contracts; (2) adds a definition for “cryptocurrency”, “legacy preneed contract”, “legacy preneed contract beneficiary”, and revises definition of “virtual currency” to include cryptocurrency; (3) provides for a 3 year abandonment period for virtual currency and clarifies the abandonment period for legacy preneed contracts; (4) amends the abandonment period of pension / retirement accounts to three (3) years after it becomes payable / distributable if owner has not accepted the distribution, corresponded in writing concerning the distribution, or otherwise indicated an interest as evidenced by a memorandum or other record on file; (5)  decreases the retention of records requirement for holders from ten (10) to six (6) years; (6) adds a provision to clarify the reporting requirements for unclaimed legacy preneed contracts; (7) provides notice requirements to owner of legacy preneed contract; (8) requires liquidation of virtual currency thirty (30) days prior to reporting and provides safeguards to the holder and administrator regarding liquidation; (9) requires the holder, when unable to liquidate virtual currency, to notify the administrator in writing and explain the reasons why the virtual currency cannot be liquidated and allows the administrator to direct the holder to either (a) transfer the virtual currency to a custodian selected by the administrator or (b) continue to hold the virtual currency until administrator or holder determines that the virtual currency can be liquidated; (10) requires a holder that pays money or property to the administrator to file a claim for reimbursement or return of property, as applicable, within two (2) years of remitting and reporting the payment or delivery of property; (11) reduces the time the administrator may commence an action, proceeding, or examination regarding duty of holder from ten (10) to six (6) years; (12) clarifies the sale or disposition of unclaimed thinly traded securities; (13) authorizes the administrator to issue a warrant or transfer property to an operating account if administrator determines that the state, a county, a municipality or a state governmental agency owns the property; (14) allows the administrator to obtain nonpublic / unredacted documents to establish ownership prior to making payment; (15) limits the compensation to a locator for the recovery of an unclaimed overbid to not exceed 10% of the amount of overbid; (16) deems confidential all records, documents, and information submitted by claimant to determine claim ownership; and (17) eliminates the exemption for local government holders.  

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.