Unclaimed Property and Corporate Compliance News

New York Publishes Proposed Regulations for Payroll Debit Cards

Visa CardMany employees do not have a bank account which employers can directly deposit wages on pay day. In looking for ways to increase efficiencies and reduce the costs of writing physical checks, many employers have looked to prefunded, reloadable debit cards, commonly referred to as payroll debit cards.

State Treasurers Waiting for ULC Uniform Act

Last week, Kansas City hosted the 2015 National Association of State Treasurers Treasury Management Symposium. The Symposium hosts state treasurers and their staffs for three plus days of training and networking. This is one of the premier events for state unclaimed property administrators, typically hosting more than 30 different state administrators at one time. In 2014, the major topics included enhancing claims processes and online holder reporting.

How Confidential are Auditor Workpapers

Court OrderOngoing shareholder litigation highlights concerns that many holders have regarding the confidentiality of audit workpapers when dealing with third party audit firms acting on behalf of multiple states. City of Sterling Heights General Employees Retirement System v.

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.

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