2006 Pertinent Unclaimed Property Law Changes

Louisiana – SB 140. Effective for the Fall 2006 reporting deadlines. Changed the dormancy period for securities, bonds, dividends, redemptions and distributions form 5 years to 3 years. Includes dividend reinvestment plan accounts (applies dormancy period to date of second returned mailing for DRPs). Signed into law on 6/23/06.

Nebraska – L 173. Effective date: 11/2/2006. Exempts from reporting gift cards that have a value under $100 and that have no expiration date or dormancy charges. Gift cards under $100 issued prior to 11/2/2006 that have an expiration date or fee may be exempt under certain conditions. Gift cards greater than $100 have a 3 year dormancy period and can have a dormancy fee or expiration date as long as they are conspicuously stated on the card. Unused gift cards must be reported as face value less any fees. On the other hand, a “general use prepaid card” is presumed abandoned after 5 years and likewise, the face amount less any fees must be reported. A general use card is one that can be used with multiple, unaffiliated sellers of goods or services.

New Mexico – HB 386. Effective July 1, 2006. Requires holders reporting 25 or more items to report using electronic media and format designated by the UP administrator. (Signed into law on 3/2/06.)

New York – SB 6460 Part T. Effective April 26, 2006 for the reduction in securities, dividends and distributions dormancy periods from 5 to 3 years. (This includes ADRs, mutual and dividend reinvestment shares, cash and stock dividends, securities held by transfer agents, etc.) The reduction in the dormancy period for negotiation instruments (including outstanding vendor checks, bank money orders, certified and cashier checks) was effective on April 1, 2006. The NY property codes effected are: 2A, 2B, 2C, 2D, 2E, 2F, 2G, 2X, 3A, 3C, 3D, 3E, 3F, 3G, 3I, 3P, 3Q, 3R, 3S, 3U, 8G, 8Q, 8S. (These changes were incorporated in the NY budget bill that was originally vetoed by the NY Governor and later overridden by the NY legislature on April 26, 2006.)

Nevada – Regulation adopted requiring that if the record kept by a holder includes a social security number, the social security number must be included in the report to Nevada UP. Further requires that reports with 15 or more must be filed by electronic means using the National Association of Unclaimed Property (NAUPA) standard electronic holder format. NV 4137 2006 – Rule adopted 6/28/06.

Ohio – New Ohio regulation defining, “Services rendered in the course of business” to mean services for which the business purchasing the service (buyer) has issued a purchase order to the business association selling the service (seller) and the seller performs the services and issues an invoice to the buyer. OH 12583 2006 (Adopted 3/13/06.) (Note: This may have an impact on the Ohio business to business exemption.)

Tennessee – HB 3182. Effective July 1, 2006. Changed the dormancy period for securities from 5 years to 3 years. (Signed into law on 5/4/06.)

Vermont – SB 158. No internal effective date. Made many changes. Increased the due diligence minimum from $25 to $50. Stated that the VT treasurer “may” require holders of mutual funds to liquidate the mutual fund shares prior to reporting. Changed the due diligence time period from no more than 120 days, to no more than 120 days nor less than 60 days prior to the reporting deadline.. (Signed into law on 5/18/06.)

Wisconsin – SB 424 – Changed the reporting year from a calendar year to a fiscal year so that reports are due 11/1/06 should cover January 1, 2005 through June 30, 2006. Reduced securities dormancy periods from 5 years to 3 years. (Signed into on 5/10/06.)

Disclaimer: This summary of legislative changes is provided for educational purposes only. ACS and UPRR are not liable for any penalties, damages or costs that are incurred by any individual or organization that relies upon the information provided. You are urged to contact the specific state unclaimed property division and your legal counsel to determine the complete details of these legislative and regulatory changes and their impact on you or your organization.

Two Canadian Provinces Have Unclaimed
Property Laws

British Columbia
On April 1, 2000, the Canadian province of British Columbia’s Unclaimed Property Act became effective. The British Columbia Unclaimed Property Act applies to specific types of property over certain dollar amounts when prescribed circumstances occur. On April 1, 2003, the British Columbia Unclaimed Property Society and the Vancouver Foundation entered into an agreement with the Province of British Columbia to deliver the unclaimed property program. For more information visit: bcunclaimedproperty.bc.ca

Quebec
Since April 1, 2006 Revenu Quebec has been the agency responsible for administering the Quebec unclaimed property program. Unclaimed property includes particular types of property located in Quebec whos owners are unknown or untraceable and property of dissolved legal persons.

In 1999, provincial law was amended to expand the applicability of the unclaimed property provisions to include deposits at savings and credit unions, retirement plan payments and life insurance payments among other things. Also included in the program are unclaimed property from estates, business dissolutions, deposits in federally chartered banks and trust companies, securities received by a securities advisor or broker or held in a fiduciary capacity, insured amounts owed under a life insurance policy, debt security redemption payments, etc.

The dormancy period for a “financial asset” is 3 years and applies to property where the last known address of the owner is in Quebec or if the law where the owner is domiciled does not provide for provisional administration. A notice must be sent to the owner before the dormancy period ends. If there is no response, the property must be transferred to the Public Curator. For more information visit: www.revenu.gouv.qc.ca/eng/entreprise/bnr/