Up-to-date News Regarding Unclaimed Property and Corporate Compliance

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Minnesota Sued Over Unclaimed Property Program

Photo by smokedsalmon on FreeDigitalPhotos.netIn the past ten years, Minnesota's unclaimed property fund has more than doubled, as the state has increased enforcement actions and more companies are reporting. The state is now finding that with more money comes more problems. Last week, a lawsuit was filed challenging whether the unclaimed property program violates due process clauses of the U.S. and Minnesota constitutions. The lawsuit seeks class action status.

Arkansas Considers Shorter Dormancy Periods

HB 1782 has passed and is now Act 1039.

Originally Posted March 11, 2015:

Arkansas has a five year dormancy period for many types of properties. A new bill sponsored by Representative Jean considers shortening the standard dormancy periods in Arkansas to three years. This would include debt of a business association; demand, savings or time deposits; proceeds from the demutualization of an insurance company; and the general catch-all provision for "all other property."

New York Requesting Bids for Auditors

New York Business BuildingsHolders should be aware that New York is looking to once again bulk up its audit practices. Last year, New York sought to add two internal senior audit staff members. Now, it is looking for external auditors.

California Appeals Court Overturns Preliminary Injunction Against ANICO

Court OrderIn May 2013, the California State Controller sued American National Insurance Company (ANICO) for failing to comply or cooperate with audit requests. The audit was part of an industry wide series of multi-state audits of life insurers. The state demanded information relating to all life insurance policies that the company had written since 1992.

Could the Delaware Secretary of State VDA Program Be Extended?

Delaware has been under heavy criticism and pressure for its unclaimed property program. To counteract some of the pressure, the Secretary of State, with the blessing of the state legislature, introduced a limited time voluntary disclosure program with shortened look-back periods. The program was intended to provide a more efficient method of bringing companies into ongoing compliance.

9th Circuit Affirms Dismissal of Taylor Case

Court OrderCalifornia's unclaimed property system is remarkably different than the other U.S. reporting jurisdictions, requiring a two-step reporting process for holders. This is a direct result of litigation challenging the constitutionality of the state's unclaimed property system.

Temple Inland Survives Motion to Dismiss

Court OrderIn May 2014, Temple Inland, a Delaware incorporated company, filed a lawsuit against Delaware, challenging the extrapolation methodology used by Kelmar Associates during an audit to examine the company's compliance with the state's unclaimed property laws.

Model Act Committee Working Towards First Reading Before Commission

BoardroomThe battle lines were clear in Washington, DC this past Friday and Saturday. On one side you had the state unclaimed property administrators represented by NAUPA and on the other side you had the holders represented by the American Bar Association. In the middle was the Committee charged with drafting a new unclaimed property model act for the Uniform Law Commission.

DeCarrera Featured in FinOps Report on Broker-Dealers

Kimberly DeCarreraIn recent months, California has announced two major settlements with financial brokerage firms for unclaimed property liabilities relating to customer accounts. These audits are being conducted by Verus, which also led the efforts for the states against the life insurance companies in recent years.

New Jersey Eliminates Gift Card Data Collection Requirement

Store Gift Card DisplayOver the years, states have looked at many different ways to close budget gaps. During the recession, New Jersey went after gift card breakage, the value remaining on unused gift cards. In 2010, the State passed a law that brought much criticism from retailers, banks and unclaimed property professionals.

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