On February 2, 2017, Delaware Governor John Carney signed into law Delaware Senate Bill 13 (“S.B. 13”), which represents Delaware’s effort to overhaul the state’s unclaimed property laws. Although S.B. 13 addresses many of the areas on which corporations and unclaimed property practitioners have been seeking guidance (see previous blog: DE Approves Legislation to Overhaul Their UP Laws) a few key issues in the current Delaware act have yet to be addressed.
Among these is how Delaware will ultimately address its current extrapolation practices. As included in S.B 13, the Delaware State Escheator must promulgate regulations regarding the method of estimation to create consistency in any examination or Voluntary Disclosure Agreement. These regulations are due to be finalized by July 1, 2017.
For holders currently under audit, these regulations will be a critical piece of information as they consider whether to either continue with the current audit process, elect to convert to an expedited audit or join the Secretary of State’s VDA program. As per the requirements of the bill, this election must be made within 60 days of the adoption of the estimation regulations. Accordingly, it is critical that holders perform the necessary modeling and analysis of their unclaimed property situation ahead of time so that they are armed with all the necessary information to make an informed decision.
Organizations need to be mindful of changing legislation and the impact it can have on their escheat compliance program. If you have any questions about the legislation or assessing your current position, we encourage you to contact us for expert guidance.
Clive Cohen T. 917.538.8900 firstname.lastname@example.org