2012-2013 NAUPA Holder Workshop Legislative Trends and Highlights May 17, 2013 Cherish Simmons Vice President Audits, Xerox The Foremost Authority on Unclaimed Property
Unclaimed Property Legislative Update Agenda Business to Business Exemptions Record Retention Requirements Reporting Requirements Gift Cards and Stored Value Cards Life Insurance and Death Matching
Business-to-Business Exemptions 13 States have a business-to-business exemption Arizona Illinois Indiana Iowa Kansas Maryland Massachusetts Michigan North Carolina Ohio Tennessee Virginia Wisconsin
Business-to-Business Exemption Michigan enacted a business-to-business exemption for credit balances, overpayments, deposits, refunds, discounts, rebates, credit memos, and unidentified remittances created on or after April 1, 2009 The exemption does not apply to outstanding checks, drafts, or similar instruments
Record Retention Requirements North Carolina reduced the time a holder is required to retain records from 10 to 5 years after the report is filed Michigan reduced its record retention requirement from 10 to 5 years after the property becomes reportable. The period of time within which the Administrator may commence an action is also reduced from 10 to 5 years
Reporting Requirements Alabama requires not only that reports must be filed electronically but that funds must be remitted electronically. The Treasurer may grant an exception upon written request. Separate reports must be filed for tangible and intangible property. Reports must be balanced The Delaware Secretary of State is authorized to resolve and compromise claims for abandoned property owing to the State Escheator provided holders voluntarily report such property within the timeframes provided. A shortened lookback period will be used in VDA agreements entered into under this program In Hawaii, except for property held in a safe deposit box, the remittance is due with the report of property
Gift Cards and Stored Value Cards Colorado exempts gift cards where the holder or issuer is a business association with annual gross receipts of all gift cards totaling $200,000 or less. Gift card does not include certain types of cards such as a card issued by a government agency, a payroll card, a card used for rebates, and a card issued pursuant to an awards or promotional program for which no monetary value was exchanged New Jersey increased the dormancy period for stored value cards from 2 to 5 years. The issuer is not required to obtain owner name and address information for 5 years. The presumption that the owner s address is the place of purchase if no actual address information is available is repealed. Certain stored value cards are exempt
Gift Card Exemptions 33 states effectively exempt gift certificates/gift cards Alabama Arizona Arkansas California Connecticut Florida Hawaii Idaho Indiana Kansas Maryland Massachusetts Michigan Minnesota Nebraska New Hampshire North Carolina North Dakota Ohio Oregon Pennsylvania Puerto Rico Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington Wisconsin Wyoming
Life Insurance and Death File Matching Six states enacted legislation requiring life insurers to perform periodic matching of in-force policies against a death master file Alabama Maryland Montana New Mexico New York North Dakota Most of these laws also apply to annuity contracts and retained asset accounts For potential matches insurers must take affirmative steps to locate beneficiaries and pay valid claims Unclaimed benefits escheat to the states
Life Insurance and Death File Matching The North Dakota law also reduced the dormancy period for funds held or owing under a life or endowment insurance policy or annuity contract that has matured or terminated from 3 years to 1 year after the funds become due and payable A life or endowment policy or annuity contract not matured by actual proof of death is matured and the proceeds are payable if the company knows of the potential death of the insured Any time an insurer learns of the death or potential death of an insured or annuitant it shall within 12 months make a good faith effort to confirm the death, locate beneficiaries, and report and remit the funds as unclaimed property if no claim is filed
Life Insurance and Death File Matching Life insurance death file matching legislation is pending in five additional states Alabama Massachusetts HB 20 Nevada AB 226 Rhode Island HB 5452 HB 192 (pending Governor s signature) (Note: this bill would revise certain provisions of existing law) Vermont HB 95 (in pending Governor s signature)