Following the passage of House Bill 278 last week, the provisions reducing Pennsylvania’s dormancy periods for all property types became immediately effective.
Pennsylvania Unclaimed Property Law Changes
Pennsylvania House Bill 278 was signed into law by Governor Corbett on July 10, 2014 and provides significant changes to Pennsylvania’s unclaimed property laws. While the Treasurer’s office has confirmed that the Pennsylvania dormancy period reduction provision for all property types is effective immediately, the remaining provisions set forth in HB 278 are effective 180 days after July 10, 2014, which calculates to February 10, 2015.
The law amends various aspects of Pennsylvania’s unclaimed property law including altering definitions, amending contact provisions for financial institutions and securities-related property, adding provisions for IRA/retirement property, addressing the recovery process for reported property, revising the entire audit process, and amending penalty provisions.
The dormancy period provisions set forth in the new law reflect continuous efforts from state leaders that date back to March with Senate Bill 1293 that proposed similar reductions. State senators indicated that they were seeking to reduce Pennsylvania dormancy periods as a potential measure to help balance the state budget.
To receive complete details regarding HB 278, please login to Keane’s Compliance Portal and refer to the Legislative Alerts section. Details on this bill can also be found within the Legislative Tracking areas for subscribers of the Compliance Resource Package.