May 2021 │ Legislation & Regulation Update

Compiled by:
Suzanne Darling

The Unclaimed Property Legislative Alert

Summary of Legislation — Week Ending May 28, 2021

NEW YORK:  Assembly Bill 7742. Proposed legislation establishes a three-year dormancy period for virtual currency and requires the Comptroller to sell it as soon as practicable on an established exchange or otherwise. A virtual currency claimant may recover the sale proceeds. If the owner of property subject to mandatory reporting under the abandoned property law has been deceased for the dormancy period, the property is presumed abandoned.
ILLINOIS: Senate Bill 338. Amended legislation modifies certain provisions relating to automatically renewable time deposit accounts and incorporates the federal Garn-St. Germain Act standard for permitting the Administrator to examine federal financial organizations. The Administrator is made responsible for any required federal tax reporting related to claim payments.

Summary of Regulations — Week Ending May 28, 2021

NEW BRUNSWICK:  Proposed Rule UP-001 (republication)(written comments due June 19, 2021). A proposed rule is amended and republished in connection with the Unclaimed Property Act, which is expected to take effect on January 1, 2022. The rule includes, for example, exemptions, dormancy periods, due diligence requirements, and examples of actions that constitute an indication of interest in property.

Summary of Legislation — Week Ending May 21, 2021

WISCONSIN:  Assembly Bill 325. Introduced legislation enacts a version of the Revised Uniform Unclaimed Property Act.
NEVADA:  Senate Bill 71 (prefiled). Enacted legislation makes numerous changes to existing law, including requiring a person filing a claim on behalf of an estate to provide evidence that the claimant is working on behalf of someone with an interest in the estate; requiring the Administrator to make a good faith effort to provide notice of an examination; giving the Administrator authority to require holders to provide records in electronic format; providing for direct payment to owners without the filing of a claim in certain circumstances; and requiring holders to retain records they intend to rely on for excluding information from reports.
TEXAS:  House Bill 1514. Enacted 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.

Summary of Legislation — Week Ending May 7, 2021

UNITED STATES:  H.R. 2954. Introduced legislation gradually increases the age at which minimum distributions are required to be taken from an IRA from 72 to 75 and establishes a Retirement Savings Lost and Found.
INDIANA:  Senate Bill 188 (effective July 1, 2021). Enacted legislation adopts a version of the Revised Uniform Unclaimed Property Act (RUUPA).
NEBRASKA:  Senate Bill 188 (effective July 1, 2021). Enacted legislation provides that an unclaimed mobile home rental deposit is abandoned one year after termination of the renter’s tenancy.
NEW JERSEY:  Assembly Bill 4788 (effective May 5, 2021). Enacted legislation returns certain escheated civil forfeiture funds that were deposited to the Unclaimed Personal Property Trust Fund back to the counties that conducted the civil forfeiture proceedings.

OREGON:  OAR Chapter 141, divisions 140 and 145 (hearing scheduled for May 24, 2021; comments due May 28, 2021). Proposed rules revise and reorganize existing rules to complete the transfer of the unclaimed property program to the State Treasurer effective July 1, 2021. Changes include: claims and non-original supporting documents may be filed online, a Voluntary Disclosure Program is established, and up to 10% of the value of a claim of $100 or more may be deducted for the costs of locating the owners.

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.