After years in the making, the Revised Uniform Unclaimed Property Act (RUUPA) was passed by the Uniform Law Commission in July 2016. States have now begun to introduce RUUPA in order to help shape unclaimed property law in their respective jurisdictions.
To date, six states have proposed to adopt provisions from the RUUPA, with some differences, that would significantly overhaul their unclaimed property statutes.
Nebraska’s differences from RUUPA
Nebraska has introduced Legislative Bill 141 which seeks to overhaul its unclaimed property statute by adopting RUUPA, but with a few changes.
Differences include a change to the dormancy period for HSAs and other similar plans that qualify for tax deferral under the income tax laws to three years after the earlier of the date when distribution of the property must begin to avoid a tax penalty, with no distribution having been made, or 15 years after the date the account was opened. This differs from RUUPA which currently calls for a 30 year dormancy period.
Under NE LB 141, gift cards that do not assess fees and contain no expiration dates are exempt, as opposed to gift cards that either assess fees or contain expiration dates, which will be presumed abandoned three years after the date the card was issued.
If signed into law, the operative date would be July 1, 2018.
Overhaul of Tennessee Unclaimed Property Law
Both bills contain provisions consistent with RUUPA regarding dormancy periods, due dates and due diligence language. “Property” is re-defined to specifically exclude game related digital content, loyalty cards, in-store credits for returned merchandise and gift cards.
Stored value cards would include payroll cards but exclude loyalty cards, gift cards and game related digital content.
Utah and Illinois: Farther Afield?
Both Utah and Illinois have introduced bills that notably depart from RUUPA. Utah has already amended its bill which it introduced only three weeks earlier to continue in its efforts to overhaul its current unclaimed property law. We will continue to follow these bills closely as they make their way through the legislative process for further revisions.
Minnesota and Vermont stay truer to RUUPA
With the introduction of Senate Bill 1035, Minnesota would enact the Revised Uniform Unclaimed Property Act, which is substantially similar to the RUUPA.
Vermont’s House Bill 311 would enact the Revised Uniform Law Commission’s Property Act of 2016, though to date, no text has been provided for this bill.
Keane will continue to track and monitor activity with regard to these RUUPA developments, as well as all legislative activity by providing updates on our blog and on our Compliance Portal. We invite you to sign up for our free legislative alerts to receive real-time updates on the latest happenings within the unclaimed property industry.