Proposed on February 17, 2011 and passed on March 25, 2011, HB 174 marks the first major unclaimed property legislation passage of 2011. The bill makes two major changes to securities reporting in Idaho: (1) the dormancy trigger will now be a combination of inactivity and RPO, instead of pure inactivity, and (2) the requirements for reporting dividend reinvestment program accounts (DRP accounts) are now clearly spelled out.. More details are provided below.
Previously, Idaho only recognized pure inactivity as a dormancy trigger for securities. Under HB 174, any stock, shareholding or other intangible ownership interest in a business association is “considered” abandoned if the owner of such interest (1) fails to either claim a dividend, distribution, or other sum payable or communicate with the association regarding the interest or a dividend, distribution; and (2) the location of the owner is unknown at the end of the five (5) year dormancy period.
More Securities Reporting Details
The legislation also provides a framework for dividend reinvestment accounts to be considered abandoned. Ownership interest enrolled in a plan that provides for the automatic reinvestment of dividends, distributions, or other sums payable as a result of the interest are not considered abandoned unless: (1) that the owner has not within five (5) years communicated or five (5) years have elapsed since the location of the owner became unknown to the association and the owner has not within those five (5) years communicated in any manner described in this chapter.
The new securities reporting law will be effective on July 1, 2011. All holders must be sure to implement the new changes when preparing their next unclaimed property report to Idaho.
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