The U.S. District Court of Delaware dismissed a July 2016 action brought by Office Depot contending that Delaware’s unclaimed property law was preempted by federal law, citing the trilogy of US Supreme Court cases that established the jurisdictional priority rules.
States have now begun to introduce legislation based in part off of the 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.
Representatives from the American Bar Association (ABA) have indicated that it intends to move forward with the drafting of a new unclaimed property model act that would serve as a clear alternative to the Revised Uniform Unclaimed Property Act (RUUPA) drafted by the Uniform Law Commission.
Three State legislatures introduced new bills that will effectively change aspects of their respective unclaimed life insurance benefits acts. Life insurance carriers that operate in Texas, one of the nation’s most populous states, should be advised of the potential operational impact of this newly proposed legislation.