In late 2016, the Uniform Law Commission (“ULC”), with the input from state unclaimed property administrators, holders, and holder advocates, completed an update to the Uniform Unclaimed Property Act, entitled the Revised Uniform Unclaimed Property Act (“RUUPA”). Since the release of the RUUPA, four states, Delaware, Illinois, Tennessee, and Utah have adopted some form of the act. The acts adopted by Delaware and Illinois made significant changes to prior legislation and MarketSphere has covered those in previous blogs, Delaware Governor Signs Legislation to Overhaul their Unclaimed Property Laws and Illinois’ New Unclaimed Property Act – Impact on Business to Business Transactions.
In 2017, Nebraska, Maine, Minnesota and Vermont have proposed bills to adopt RUUPA. And, kicking off 2018, the District of Columbia and state of Washington have proposed legislation to adopt the 2016 RUUPA.
The recently proposed bills for both the District of Columbia and Washington include changes to definitions, including additions of property types, changes to what constitutes contact with an owner, and various other updates consistent with the 2016 RUUPA. In addition to the changes noted above, the both proposed bills include a transitional requirement that holders retroactively report property types that were not included in prior acts (e.g., payroll cards). This transitional requirement was included in the adoption of Illinois’ RUUPA, which is currently impacting many holders for 2018 spring reporting. The specific provision for both bills [section 15-1503] states that holders are to: “include all items of property that would have been presumed abandoned during the 10-year period preceding the effective date of this section/act as if this chapter/act had been in effect during that period”.
Plainly put, if the proposed legislation is adopted by either jurisdiction, newly defined property may become reportable for current and prior periods.
MarketSphere will be monitoring and providing updates to this and any other related bills. If you have any questions or believe you may be impacted by the proposed legislation, please contact us.