The West Virginia State Treasurer’s Office (WVSTO) recently confirmed that holders will need to follow the changes made to their unclaimed property law as a result of the passage of House Bill 4511, which becomes effective June 10, 2022, for the upcoming Fall reporting cycle.
This short turnaround time for holders to become compliant with the new law highlights the need for holders to actively monitor legislative, regulatory, and administrative activity.
A high-level summary of the changes include:
Reduced dormancy periods for certain property types, including:
• The debt of a business association or financial organization: 5 to 3 years.
• Funds held by a fiduciary: 5 to 3 years.
• The miscellaneous, or “catch-all” provision for intangible property: 5 to 3 years.
• A deposit or refund owed to a subscriber by a utility: 2 to 1 year.
• A 3-year dormancy period for virtual currency. Holders are required to liquidate the virtual currency within 30 days of filing the report and remitting the property to the state.
The WVSTO has also issued the following guidance as it relates to securities:
Because the abandonment period for stock as set forth in W. Va. Code § 36-8-2(a)(3) remains at five years, the West Virginia State Treasurer's Office recognizes the complications that could arise from different abandonment periods for stock, and any cash dividends payable thereon.
Accordingly, as an executive policy, the West Virginia State Treasurer's Office will permit a holder to report cash dividends utilizing a five-year abandonment period. No interest or penalties will be assessed against a holder reporting cash dividends under this parameter.
Please note that this indefinite reporting extension applies only to cash dividends, and not to other types of securities-related cash or other types of miscellaneous intangible property.
If your organization needs assistance with tracking and monitoring legislation, reporting unclaimed property to the states, other questions or concerns related to compliance with the ever- evolving unclaimed property laws, contact MarketSphere and speak with our specialists.
A link to WV H 4511 can be found here https://www.wvtreasury.com/House-Bill-4511 and the list of updated dormancy periods provided by the state is available at https://www.wvtreasury.com/Updated-Dormancy-Periods.
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*Content contained in this article is considered accurate as of the publish date.