With 2023 right around the corner, we wanted to call your attention to new changes to the unclaimed property laws in Washington and Maryland. WA S 5531 Washington joins the RUUPA states (states that model their unclaimed property laws on the 2016 Revised Uniform Unclaimed Property Act), with WA S 5531, effective on January 1, 2023. Here is a summary of the key changes: • While dormancy periods generally remain the same, it is important to review property types and trigger dates for escheatment, as those have changed for some property types. All holders should note that that Washington, like o ..read more

Amounts owed to your organization (unclaimed property) can go unclaimed for a myriad of reasons.  Your company could have moved locations.  You could have changed your process or contact point for payment receipt.  A check could literally be lost in the mail.  Once items are lost and go unreconciled, they turn into unclaimed property. Unclaimed property can be funds held by a state/jurisdiction resulting from statutory escheat requirements or they can be outstanding balances held by a government entity (that will never be escheated) until you or your organiz ..read more

California AB 2280 was signed by Governor Gavin Newsom on September 13, 2022 and becomes effective on January 1, 2023. Holders have been closely following CA AB 2280, as it authorizes the Controller to establish a voluntary compliance program (“VCP”), which would allow holders to voluntarily report and remit past due property. Holders that are eligible for the program and successfully complete the requirements outlined in the bill would receive a waiver of the mandatory 12% interest assessed on late property reported to California ..read more

The states continue to enforce their unclaimed property laws using the following familiar methods: • Single and multistate audits, often run by various third-party audit firms • VDA invitation letters (e.g., Delaware, resulting in referral for audit if a response is not received within 90 days) • Compliance reviews and requests for verified reports (e.g., Delaware) • Self-audit notification letters (e.g., Illinois) •Questionnaires regarding the holder’s unclaimed property compliance (e.g., New York) The states can also subject holders to litigation under their unclaimed property laws and Fals ..read more

The Delaware Secretary of State (SOS) has indicated its intent to mail the latest round of VDA invitations on or around July 22, 2022.  Under Delaware law, the state cannot initiate an unclaimed property examination (audit) unless a company has first been notified in writing by the SOS that it may enter the SOS VDA Program. Holders who do not enroll in the VDA Program within the 90-day notice period set forth in the letter will be referred to the Department of Finance for an unclaimed property audit ..read more

Enacted and made effective on June 30, 2022, Delaware SB 281 makes significant changes to Delaware’s unclaimed property law. Holders currently under audit or who are participating in a voluntary disclosure program (VDA) with Delaware’s Secretary of State (DE SOS), as well as holders in litigation should take note that many of these new provisions apply retroactively. Below is a summary of the key provisions: Enforcement: Verified Reports and Compliance Reviews • While the Department of Finance is required to notify a holder of the opportunity to participate in the Secretary of State’s VDA pro ..read more

The West Virginia State Treasurer’s Office (WVSTO) recently confirmed that holders will need to follow the changes made to their unclaimed property law as a result of the passage of House Bill 4511, which becomes effective June 10, 2022, for the upcoming Fall reporting cycle. This short turnaround time for holders to become compliant with the new law highlights the need for holders to actively monitor legislative, regulatory, and administrative activity ..read more

If your organization places a value on customer retention and would like to reduce your overall escheatment and due diligence expenses, now is the time to commence an outreach program to dormant account owners. There is still time to make contact with customers prior to the fall escheatment cycle, and if you move quickly, you can also reduce your due diligence mailings expenses.    Due diligence for the fall reporting cycle generally mails anytime from July – August. The due diligence mailing process cleans up a handful of accounts every escheat season – usually somewhere between 1 ..read more

A ..read more

A ..read more