The bill introduces several modifications to the Revised Uniform Unclaimed Property Act (RUUPA), which governs how unclaimed property, including virtual currency, is handled. Here’s a breakdown of the key changes:
Preneed Funeral Contracts:
Legacy preneed contracts for funeral services (those entered into before August 10, 2022) are clarified regarding how they are treated under RUUPA in Sections 1, 2, 5, and 6.
Virtual Currency:
Definition and treatment of virtual currency is modified:
Presumed abandoned after 3 years from the latest indication of interest by its apparent owner.
A holder of unclaimed virtual currency must liquidate it within 30 days of reporting it and remit the proceeds to the state treasurer.
Owners of virtual currency have no recourse for any gain in value of the currency after it is liquidated.
Record Retention:
Section 4 reduces the period for which a holder of unclaimed property must retain records from 10 years to 6 years.
Claims and Reimbursement:
Section 8 requires holders who pay money to the administrator to file a claim for reimbursement within 2 years of remitting the money.
Administrative Actions:
Section 9 reduces the time frame for the administrator to commence an action or proceeding related to unclaimed property from 10 years to 6 years.
Disposition of Thinly Traded Securities:
Section 10 clarifies the administrator's authority in the sale or disposition of unclaimed thinly traded securities.
Unclaimed Property Ownership:
Section 11 allows the administrator to issue a warrant or transfer unclaimed property to a county or municipality's operating account if the property is determined to belong to the local government.
Document Requirements for Claims:
Section 12 authorizes the administrator to require nonpublic, nonredacted documents from claimants to prove ownership of unclaimed property.
Compensation for Recovery:
Section 13 reduces the maximum compensation allowed under agreements to recover unclaimed overbid property from 30% or 20% (depending on the agreement date) to 10%, regardless of when the agreement was entered into.
Local Government Exemption:
Section 14 repeals an exemption from RUUPA for local governments as holders of unclaimed property, as few local governments have met the specified conditions for the exemption.
Summary of Changes:
The bill brings clarity and modernization to the treatment of virtual currency, record retention, administrative procedures, and compensation for services related to unclaimed property. It also addresses the management and recovery of unclaimed property, including adjustments to timelines and administrative powers.
Summary
The bill modifies the Revised Uniform Unclaimed Property Act
(RUUPA) as follows:
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Sections 1, 2, 5, and 6 clarify the treatment under RUUPA of legacy preneed contracts, which are preneed contracts for funeral services entered into before August 10, 2022; •
Sections 2, 3, and 7 modify the definition of virtual currency, specify that virtual currency is presumed abandoned 3 years after the latest indication of interest by its apparent owner of the virtual currency, requires a holder of unclaimed property that is reporting unclaimed virtual currency to the state treasurer (administrator) to liquidate the virtual currency within 30 days of filing the report and remit the liquidation proceeds to the administrator, and specifies that the owner of the virtual currency has no recourse against either the holder or the administrator for any gain in value of the virtual currency after liquidation;
•
Section 4 shortens the period for which a holder required to file must retain records from 10 to 6 years;
•
Section 8 requires a holder that pays money to the administrator to file a claim for reimbursement from the administrator of the amount paid within 2 years of remitting and reporting the money paid;
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Section 9 reduces the amount of time after a duty of a holder of unclaimed property arises that the administrator has to commence an action, proceeding, or examination with respect to the duty from 10 years to 6 years;
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Section 10 clarifies the authority of the administrator with respect to the sale or other disposition of unclaimed thinly traded securities;
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If the administrator determines that a county or a municipality owns unclaimed property in the possession of the administrator, section 11 authorizesthe administrator to issue a warrant to or transfer the property to an operating account of the county or the municipality;
•
Section 12 authorizes the administrator to require a person making a claim for unclaimed property to supply nonpublic and nonredacted documents to prove ownership of the property;
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Section 13 reduces the maximum amount of compensation allowed to be paid under an agreement to recover or assist in recovering an unclaimed overbid transferred to the administrator from either 30% or 20% of the amount of the overbid depending on when the agreement is entered into to 10% of the amount of overbid without regard to when the agreement was entered into; and
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Section 14 repeals a statutory exemption from RUUPA for a local government that is a holder of property and satisfies specified conditions because few local governments have met the specified conditions. 1
