MI10 – which is a non-NAUPA reporting code – while the State of Wyoming prohibits the “commingling of newly-reported owners with those previously reported.” DE VDA Invitations: A Precursor to DE Audit Companies in the Energy sector should remain on the lookout for a DE Secretary of State invitation to participate in the DE Voluntary Disclosure program. As noted above, the DE VDA notice, or invitation to participate in the program, is a precursor to audit assignment. Should your company elect not to respond to the DE VDA notice and enroll in the program, the company will be referred to the Delaware Department of Finance (“DE DOF”) office and will likely be AUDITED! Introduced in 2017, Senate Bill 13 established the terms under which the State of Delaware can authorize an unclaimed property audit on holders. With this landmark legislation, the Delaware Unclaimed Property Laws were revised, and a more “holder friendly” approach to compliance enforcement was enacted. The Delaware Secretary of State (“DE SOS”) office oversees the DE VDA program, and issues DE VDA invitations to holders – mainly those of which are domiciled in the State of Delaware. In the event the notice is not responded to within the 60-day window, DE DOF is notified and the company is flagged as audit eligible. Again, if your company is flagged as audit eligible, the company can be selected for AUDIT! It is imperative that staff members whom receive mailings forward the DE VDA notice to the proper decision makers so that it can be responded to timely. What we’ve noticed in the industry is that several companies were unaware of the fact that they received the invitation due to a number of reasons such as: 1. Addressed to former employees/executives 2. Addressed to subsidiary entity and not parent Although the DE VDA can be a cumbersome exercise to complete – it is far less contentious and frustrating than an audit by one of the State’s contracted 3rd party auditors. Please be sure that your staff and peers are informed of the gravity of this correspondence. Legislative Changes Affecting You! Texas HB 3598
makes a number of changes to the unclaimed property law, including: • Combined Reporting: holders of an affiliated group must file one report for the affiliated group; • Continuing Reporting: holders that are required to file a report in any year must file reports in each successive year. If a holder does not have reportable property in any given year, a negative report is required. • Record Retention: without regards to whether the property is reported in the aggregate, holders shall maintain records for 10 years from the later of the date on which the property is reportable or the date the report is filed. • Enforcement: the comptroller is authorized to take testimony, administer oaths, and issue subpoenas. If the court determines that a subpoena was issued in good faith, the court shall order compliance with the subpoena and may apply penalties for civil and criminal contempt otherwise available at law if a person refuses to comply. Colorado SB 88 Enacted on April 16, 2019 and effective on July 1, 2020, CO S 88 is similar to the 2016 Revised Uniform Unclaimed Property Model Act (“RUUPA”) in that new property types are eligible to escheat; dormancy periods and trigger dates for many property types are updated; and additional electronic outreach is required for holders who do not communicate with owners of retirement accounts, custodial accounts or securities via regular mail. As a result, dormancy periods will be reduced for many property types to 3 years (banking property will remain at 5 years) and new trigger dates will determine when an account is eligible to escheat. Due diligence letters must be sent between 60 and 180 days prior to filing the report to owners of property valued at $25 or more. The requirements for the content of the notice are the same as in RUUPA. However, for those owners who have consented to receive electronic mail delivery from the holder, notice may be sent by email in the place of regular mail, unless the holder has evidence that the email cannot be delivered. Additional changes to the law as a result of S 88: • Increases the record retention period to 10 years. • Includes a 5-year transitional provision.
Enacted and effective as of June 10, 2019, TX H 3598
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