March 2025 │ Legislation & Regulation Update
The Unclaimed Property Legislative Alert
Summary of Legislation — Week Ending March 21, 2025
ARKANSAS: Introduced SB 454 creating an Unclaimed Property Interest Fund to hold interest earned from investment of funds in the Unclaimed Property Proceeds Trust Fund and the Abandoned Mineral Proceeds Trust Fund. Monies in the Unclaimed Property Interest Trust Fund are to be used to reimburse the State Central Services Fund and to reimburse the Unclaimed Property Proceeds Trust Fund for any liabilities incurred as a result of insufficient funds.
VIRGINIA: Enacted HB 1606 authorizing the administrator to pay cash property without the filing of a claim for property valued at $5,000 or less where the apparent owner is a natural person and sole owner and whose identity has been verified.
Summary of Legislation — Week Ending March 14, 2025
CONNECTICUT: Introduced SB 1434 which (1) adds definition for funeral service contract; (2) updates the definition of “last known address” to remove requirement that it must be sufficient for delivery of mail; (3) clarifies due diligence requirements and requires mail for property valued at $50 or more and requires electronic mail for all property; (4) requires holders to retain records for 10 years after date of reporting; and (5) updates notice requirements by Treasurer including limiting mailing to property valued at $50 or more.
IDAHO: Enacted HB 165 (1) revising maturity of an automatically renewable demand savings or time deposit account to initial date of maturity plus one (1) renewal; (2) requiring electronic communication to be sent to apparent owners no later than two (2) years after last indication of interest; and (3) revising reporting timelines for property presumed abandoned.
RHODE ISLAND: Introduced HB 5740 to revise the definition of “Intangible Property” to include all other intangible property as identified by the administrator.
SOUTH DAKOTA: Enacted HB 1196 (1) revising the definition of “Last known address” to remove the requirement that the description of location be sufficient for delivery of mail and adding a definition of “Virtual currency”; (2) providing an abandonment period of three (3) years for virtual currency and process for reporting and liquidating virtual currency; and (3) revising the due diligence requirements for holders.
SOUTH DAKOTA: Enacted SB 155 creating a separate unclaimed property operating fund for unclaimed property within state treasury for purposes of providing for the return / payment of unclaimed property. Expenditures from the fund must be appropriated and net receipts shall be deposited into the general fund as prescribed.
Summary of Regulations — Week Ending March 14, 2025
IOWA Adopted regulations that (1) updates the list of required forms and provides online link to all forms; (2) revises the definition of “Gift certificate” and adds definitions of “Electronic authentication”, “Gift card”, and “Locator” and eliminates the term “Finder” and “Finder agreement”; (3) removes the value cap for reporting dormancy fee assessments; (4) updates reporting requirements to include worthless securities and does not require reporting of a security identified by a holder as non-freely transferable. However, upon determination by the Division or the holder that the security is no longer non-freely transferable, it shall be reported and remitted; (5) provides that reporting of a Rother IRA shall be extended until three years after the date specified in the income tax laws by which distribution must occur to avoid a tax penalty following the owner’s death. If the life status of the owner is unknown, the owner is presumed deceased upon reaching age 110. In reporting IRAs and other retirement accounts, holders shall comply with federal income tax withholding requirements of IRS Revenue Ruling 2018-17 and other applicable withholding and reporting requirements; (6) provides for the reporting of tax-advantage accounts three years from the later of the date second notice was returned undeliverable by USPS or the date of the last indication of interest or thirty years after the date the account was opened. Uncashed distribution checks are reportable three years after date the property became reportable; (7) provides that an unused balance on a gift certificate or gift card is reportable as unclaimed property if the gift certificate or gift card is: (1) not redeemable for cash, (2) issued after July 1, 2014, and (3) subject to expiration or service fees. The certificate or card is subject to expiration or service fees if the certificate or card so indicates regardless of whether the issuer waives such expiration or fees; (8) allows a retirement plan administrator to report early following a diligent search for missing participants, if terminating a retirement plan; (9) allows the Treasurer to charge $5.00 per name and address account reported if 35 percent or more of the accounts are claimed within 24 months after the report is filed; (10) discourages holders from reporting property in the aggregate. If property is reported in the aggregate, the holder shall be responsible to provide information needed to verify and validate a claim; (11) prohibits the Division from releasing confidential information to a locator even if authorized by a claimant; (12) the Treasurer may establish policies concerning amounts and specific types of documents that require a notarized signature. The Treasurer may also waive the filing of a claim as provided by statute; (13) removes indemnification by holder for claims by holders for owner reimbursement; (14) requires claims with cash value greater than $5,000 undergo electronic authentication; and (15) provides that all information provided by a holder other than the name and last-known address of the apparent owner shall be confidential and not subject to public disclosure.
RHODE ISLAND Adopted regulations outlining the process for payment or delivery of virtual currency. The regulation requires the holder to liquidate and remit within thirty (30) days prior to reporting. The regulation prevents the owner from any recourse against the holder or administrator as a result of the liquidation. The regulation is effective upon passage of legislation granting authority to accept other intangible property as identified by the Administrator.
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.