On March 28, 2014, the Pennsylvania Legislature introduced Senate Bill 1293, providing for sweeping reductions of unclaimed property dormancy periods. SB 1293 seeks to reduce the dormancy period across all property types from five to three years.
In the past few months, Pennsylvania state senators have indicated that they were seeking to reduce the dormancy periods for inactive bank accounts, abandoned safety deposit boxes and uncashed checks as a potential measure to help balance the state budget. Pennsylvania last reduced its unclaimed property dormancy periods in 2002.
In recent years there has been a common trend of states introducing and passing legislation with provisions for reduced dormancy periods. For example, South Dakota House Bill 1270 reduced the dormancy periods for various property types from five to three years in March 2012. However, some states have not been able to successfully pass similar legislation. Mississippi has introduced legislation in each of the past several years that propose dormancy period reduction, none of which have passed to date.
It is critical for holders to monitor all legislative changes, especially those impacting unclaimed property dormancy periods, to ensure each organization is fulfilling its unclaimed property reporting obligations in an accurate and timely manner. Reporting incorrectly or failing to report and remit dormant property on time to the state can lead to a multitude of consequences that may negatively impact your organization’s bottom line, such as fines, penalties, and intrusive unclaimed property audits.
The Keane Compliance Team will continue to monitor PA SB 1293 and report on its progress. To receive complete details regarding SB 1293, 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 Unclaimed Property Update Package.