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”). The first uniform unclaimed property act was drafted in 1954 as a guideline that each of the states could use to help draft their own state unclaimed property laws. The uniform act was subsequently revised in 1981 and again in 1995. Currently 39 jurisdictions have adopted either the 1981 or 1995 act uniformly, while 14 others have a non-uniform act in place.
Changes Holders Can Anticipate if RUUPA is Adopted
In recent months, several states have started to utilize the RUUPA to update their state’s unclaimed property laws. Some states are only incorporating certain sections of the RUUPA into their current UP laws while others are proposing to use the entire RUUPA to replace the state’s current UP laws. The most notable RUUPA adoption to-date has been the non-uniform Senate Bill 13 signed into law by the state of Delaware on February 2, 2017. While this new Delaware law has created a great deal of industry headlines, as of the date of this blog, Illinois, Nebraska, Minnesota, Tennessee and Utah have proposed bills to adopt the RUUPA, that may impact holders in a variety of ways if passed. Holders should be considerate of several potential adjustments to current law.
As an example, should Ilinois adopt RUUPA, the proposed bill would include the following:
- Definition updates to include electronic mail as a form of contact with the apparent owner
- Due diligence requirement change raising the $10 minimum mailing threeshold to $50
- Dormancy changes for several property types from 5 years to 3 years
Engaging the services of professional unclaimed property specialists, who have years of experience and resources to monitor changes, can provide holders with the peace of mind that they are going to be proactive to maintain compliance and reap advantages when legislation is being proposed and passed.
MarketSphere will be monitoring and providing updates to this and any other related bills. If you need additional unclaimed property resources, visit the Knowledge Vault for educational and support materials.