May 2024 │ Legislation & Regulation Update
The Unclaimed Property Legislative Alert
Summary of Legislation — Week Ending May 31, 2024
NEW YORK: Assembly Bill 4935. Introduced legislation establishes a process to determine just compensation owed to a former owner whose property was sold for a tax lien. If the former owner does not accept the tax district’s offer or request a hearing within three years, the amount held by the tax district, less taxes, interest, and penalties, shall be reported as unclaimed funds.
Summary of Legislation — Week Ending May 24, 2024
CONNECTICUT: Senate Bill 393 (effective July 1, 2024, except as indicated). Enacted legislation requires a holder to take reasonable steps to prevent the presumption of abandonment, including at minimum, sending notice by first-class mail and by email if the owner has consented to receive email communications. Unclaimed virtual currency shall be sold, and the proceeds, less lawful charges, shall be remitted to the Treasurer not later than 30 days after the report is filed. Due diligence for virtual currency shall include notice that the property may be sold. The Treasurer and the Commissioner of Revenue shall enter into an agreement for the disclosure of return or other relevant information to facilitate the identification of rightful owners and the payment of claims.
VERMONT: House Bill 883 (effective July 1, 2024). Enacted legislation repeals the exemption for ABLE accounts under the Revised Uniform Unclaimed Property Act.
Summary of Legislation — Week Ending May 17, 2024
NEW YORK: Assembly Bill 10221. Introduced legislation treats energy services companies as utilities for purposes of the Abandoned Property Law. An energy services company is an entity that sells energy services to end-use customers using a utility’s transmission or distribution system.
MINNESOTA: House File 3800 (effective August 1, 2025). Enacted legislation requires a housing cooperative to report unclaimed property. In lieu of paying or delivering the property to the state, however, the cooperative may distribute the property to a tax-exempt organization. Upon disbursement, the owner’s rights are extinguished so long as the cooperative gave notice to the owner in the manner specified.
VIRGINIA: House Bill 6001 (Chapter 2) (effective July 1, 2024). Enacted legislation provides that, notwithstanding requirements of the Uniform Disposition of Unclaimed Property Act, publication of an item valued at less than $250 is not required.
Summary of Legislation — Week Ending May 10, 2024
IOWA: House File 2667 (effective July 1, 2024). Enacted legislation allows the Treasurer to opt out of publishing owner information in the newspaper and instead publish information designed to increase public awareness of the unclaimed property program. The Treasurer may waive the claim requirement and pay a person directly in certain circumstances.
Summary of Legislation — Week Ending May 3, 2024
DELAWARE: Senate Bill 266. Introduced legislation provides that a whistleblower may supply information to the State Escheator and Attorney General about a holder’s failure to comply with unclaimed property reporting requirements. The State Escheator may initiate an examination within 90 days thereafter. If no examination is initiated, the Attorney General may bring a false claims action. If a recovery for the state is obtained from an examination or a false claims action, the whistleblower may be entitled to an award calculated according to guidelines specified. Only the Attorney General may bring a false claims action against a holder based on noncompliance with unclaimed property reporting requirements.
CONNECTICUT: Raised Senate Bill 393. Amended legislation requires that holders send notice to owners by email if the owner consented to that method of delivery for notices required by law. The original requirement for notice by telephone is omitted. A claimant to property of a deceased owner valued at less than $500 may receive payment based on submission of a certified claim and affidavit in lieu of otherwise required court documents in certain circumstances. All proposed amendments to locator agreement provisions are deleted.
FLORIDA: House Bill 989 (effective May 2, 2024, except § 717.117 effective January 1, 2025). Enacted legislation establishes a five-year dormancy period for virtual currency and requires that the holder liquidate the property within 30 days of reporting it to the Administrator. Upon delivery, the holder is relieved of all liability for losses or damage. The dormancy period for securities is the earliest of three years after date of last activity, three years after date of death, or one year after notice of death if notice is received not more than two years after death and the holder lacked knowledge of the death during the two-year period. Aggregate reporting is reduced to $10. The 10-year period of limitations is tolled by the earlier of delivery of a notice of examination or the holder’s written election to enter into a voluntary disclosure agreement. Financial or proprietary information of a holder compiled in an audit may be considered trade secret and exempt information as provided by law.
VERMONT: House Bill 839 (effective March 13, 2024). Enacted legislation requires the liquidation of virtual currency within 30 days of filing the unclaimed property report, and remittance of the proceeds.
Summary of Regulations — Week Ending May 3, 2024
WEST VIRGINIA: CSR §§ 112-5-1; 112-5-2; 112-5-4; 112-5-6; 112-5-7; 112-5-15 (effective May 1, 2024). Final regulations incorporate provisions relating to the reporting of certain oil and natural gas interests owed to unknown and unlocatable owners. In filing unclaimed property reports, holders are required to report additional information about all owners, and all insureds and their beneficiaries, and shall report beneficiary information for other property subject to transfer on death.
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.