Revised Uniform Unclaimed Property Act Modifications

The act modifies the "Revised Uniform Unclaimed Property Act" (RUUPA) as follows:

• Sections 1, 2, 6, and 7 clarify the treatment under RUUPA of legacy preneed contracts, which are preneed contracts for funeral services entered into before August 10, 2022;
• Sections 2, 3, and 8:
• Modify the definition of virtual currency;
• Specify that virtual currency is presumed abandoned 3 years after the latest indication of interest by its apparent owner;
• Require a holder of unclaimed property (holder) that is reporting unclaimed virtual currency to the state treasurer (administrator) to liquidate the virtual currency within 30 days of filing the report and remit the liquidation proceeds to the administrator unless the virtual currency cannot be liquidated, in which case the administrator may require the holder to transfer the virtual currency to an administrator-selected custodian or continue to hold the virtual currency until it can be liquidated or until an apparent owner expresses interest in it; and
• Specify that the owner of the virtual currency has no recourse against either the holder or the administrator for any gain in value of the virtual currency after liquidation;
• Section 4 modifies the circumstances under which a tax-deferred retirement account is presumed abandoned so that abandonment is presumed if the account is unclaimed by the apparent owner 3 years after it becomes payable or distributable if the owner has not accepted the distribution, corresponded in writing concerning the distribution, or otherwise indicated an interest as evidenced by a memorandum or other record on file with the fiduciary of the trust or custodial fund or the administrator of the plan under which the trust or fund is established;
• Section 5 shortens the period for which a holder required to file a report regarding property that is presumed abandoned must retain records from 10 to 6 years;
• Section 9 requires a holder that pays money to the administrator to file a claim for reimbursement from the administrator of the amount paid within 2 years of remitting and reporting the money paid;
• Section 10 reduces the amount of time after a duty of a holder arises that the administrator has to commence an action, proceeding, or examination with respect to the duty from 10 years to 6 years;
• Section 11 clarifies the authority of the administrator with respect to the sale or other disposition of unclaimed thinly traded securities;
• If the administrator determines that a county or a municipality owns unclaimed property in the possession of the administrator, section 12 authorizes the administrator to issue a warrant to or transfer the property to an operating account of the county or the municipality;
• Section 13 acknowledges that the administrator may require a person making a claim for unclaimed property to supply any documents, including nonpublic and nonredacted documents, that are necessary to prove ownership of the property;
• Section 14 reduces the maximum amount of compensation allowed to be paid under an agreement to recover or assist in recovering an unclaimed overbid transferred to the administrator from either 30% or 20% of the amount of the overbid depending on when the agreement is entered into to 10% of the amount of overbid without regard to when the agreement was entered into;
• Section 15 clarifies that unless another provision of RUUPA provides otherwise, all records, documents, and information submitted by a claimant to the administrator or the administrator's agent to enable the administrator or agent to determine whether the claimant is the owner of the property are confidential and exempt from public inspection or disclosure; and
• Section 16 repeals a statutory exemption from RUUPA for a local government that is a holder of property and satisfies specified conditions because few local governments have met the specified conditions.
  (Note: This summary applies to this bill as enacted.)