Revised Uniform Unclaimed Property Act Modifications

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

• Sections 1, 2, 5, and 6 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 7 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 of the virtual currency, requires a holder of unclaimed property 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, and specifies 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 shortens the period for which a holder required to file must retain records from 10 to 6 years;
• Section 8 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 9 reduces the amount of time after a duty of a holder of unclaimed property arises that the administrator has to commence an action, proceeding, or examination with respect to the duty from 10 years to 6 years;
• Section 10 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 11 authorizes the administrator to issue a warrant to or transfer the property to an operating account of the county or the municipality;
• Section 12 authorizes the administrator to require a person making a claim for unclaimed property to supply nonpublic and nonredacted documents to prove ownership of the property;
• Section 13 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; and
• Section 14 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 introduced.)