Revised Uniform Unclaimed Property Act
Revised uniform unclaimed property act. The act replaces the current provisions relating to the disposition of unclaimed property with the "Revised Uniform Unclaimed Property Act" (RUUPA), as adopted by the National Conference of Commissioners on Uniform State Laws in 2016, but including a number of Colorado-specific amendments. The RUUPA responds to current transactions and practices, in particular electronic records, and seeks to promote uniformity among state laws regarding the disposition of unclaimed property.
The RUUPA is subdivided into 15 parts, which are summarized as follows:
- Part 1 establishes general provisions, including definitions for terms used in the RUUPA and authority for the administrator, who is the state treasurer, to make rules related to the RUUPA;
- Part 2 establishes standards to determine if property is abandoned. Under the RUUPA, property is presumed abandoned if it is unclaimed by its apparent owner after a specified period of time known as the dormancy period. Some of the dormancy periods in the RUUPA are shorter than current law. This part also includes a number of sections that are included in current law to exempt property from the RUUPA.
- Part 3 establishes priority rules for determining when the state may take custody of property that is presumed abandoned;
- Part 4 requires a holder of property presumed to be abandoned to provide a report to the administrator and to retain certain records;
- Part 5 establishes the notice that the administrator must provide to the apparent owner;
- Part 6 establishes how the administrator takes custody of property after it has been abandoned;
- Part 7 permits the administrator to sell property at a public sale after notice;
- Part 8 relates to the administration of property and keeps the requirement that the proceeds of property sold be deposited in the existing unclaimed property trust fund and the unclaimed property tourism promotion trust fund;
- Part 9 addresses claims to recover property from the administrator and includes existing provisions to allow offsets against the claim for child support; judicial restitution, fines, fees, or surcharges; and delinquent taxes and claims of the state;
- Part 10 permits the administrator to request a report from a person and to examine records to determine compliance with the RUUPA;
- Part 11 provides a holder with the right to appeal the administrator's determination concerning the holder's liability to deliver property or payment to the state;
- Part 12 establishes penalties for a holder that fails to comply with the RUUPA;
- Part 13 governs agreements between an apparent owner and a person commonly known as a "finder" who locates and recovers abandoned property on behalf of the owner;
- Part 14 addresses the confidentiality and security of information related to the abandoned property; and
- Part 15 includes miscellaneous provisions relating to the uniformity of construction, electronic signatures, a local government opt-out, and transitional interpretation.
The act also includes the "Unclaimed Life Insurance Benefits Act", which establishes the duty of an insurer to compare names of insured with the death master file and to verify a match found on the list. Benefits that are not able to be paid to designated beneficiaries or owners whom cannot be found are transferred to the administrator in accordance with the RUUPA.
(Note: This summary applies to this bill as enacted.)