The Alabama unclaimed property reporting process will be slightly different this coming fall, as HB 112 was signed into law on April 18, 2013. This bill addresses several unclaimed property issues, including the filing of unclaimed property reports, due diligence, and banking property. Highlights of the bill are as follows:
Alabama Unclaimed Property Reporting Changes
Holders in Alabama will now be required to submit payments and file unclaimed property reports through electronic means. The Treasurer may grant exceptions to individual holders upon written request.
Additionally, unclaimed property reports should contain either tangible property or intangible property only. If a holder possesses both property types, a separate report for each property type will need to be filed.
Owner detail will also be required on any unclaimed property reports for property with a value set by the Administrator. The existing $50 threshold for aggregate reporting has been removed.
The due diligence time frame has been changed requiring notice to be mailed not less than 60 days before filing the report. Currently, the law requires that the notice be sent not more than 120 days and not less than 60 days before the filing of the report.
Additional Alabama Unclaimed Property Changes
The provision addressing banking property has been amended by removing language deeming automatically renewing CDs matured at initial maturity. Instead, the new provision says that a demand, savings, or time deposit, including a deposit that is automatically renewable – is presumed abandoned three years after the earlier of maturity, “as extended from time to time”, or the date of the last indication by the apparent owner of interest in the property.
The requirement to include the name of all former and predecessor holders has been removed.
The provisions protecting the state when receiving property and the holder when remitting property have been clarified.
All changes to Alabama unclaimed property policies outlined within HB 112 became effective with the passage of the bill on April 18, 2013.