2019 Q4

1. Due Diligence a. Nevada – Added email due diligence requirements in certain circumstances 2 b. North Dakota – Added requirement that the North Dakota unclaimed property division contact information be included in due diligence notices 3 2. Aggregate Limits & Reporting a. Nevada – Eliminated aggregate limit thereby eliminating reporting in this manner 4 . (The aggregate limit is the prescribed dollar amount under which property items can be reported by property type in a combined lump sum.) b. South Dakota – Reduces the aggregate limit from $50 to $10 5 3. Negative & Consolidated Reporting a. Texas – Mandates negative and consolidated reporting in certain circumstances 6 4. Report & Remittance Delivery Specifications a. Nevada – Reports must be delivered via a “business portal established by the Administrator” and payment must be made through that portal of the total amount due 7 b. Nevada - Adds a new penalty for holders failing to remit through the online portal, which is the greater of $50 or 2% of the remittance. 8 II.Mineral Interest – Specific Unclaimed Property Legislative and Regulatory Changes a. North Dakota – For mineral interests, the unclaimed property report must include a legal land description, well number, recording information, and any other information necessary to adequately describe the lease. 9

b. Utah – Clarifies the “no taker” provision addressing mineral interests and proceeds when there is no taker. Adds a provision requiring an operator, owner or payer that determines that a mineral interest or mineral proceeds are a part of a decedent’s intestate estate, to submit to the Utah School and Institutional Trust Lands Administration information about: • the identity of the decedent, • the results of a good faith search for heirs, and • the property interest from which the mineral interest or proceeds are derived. The operator, owner, or payer must submit the information within 180 days of acquiring it. 10 c. West Virginia – HB 4268 (the “Co-Tenancy Bill”) is in full effect. West Virginia has created a new Co- Tenancy MI11 NAUPA code and requires electronic reports and remittances be submitted every quarter for unclaimed Co-Tenancy/Reserved Interests property. 11 As we head into a new year, we will kick off a new legislative season. For information on staying current with legislative and regulatory changes and how they may impact your escheat program, contact: Karen Anderson Director, State & Local Tax, Unclaimed Property karenanderson@kpmg.com Ph: 303-382-7020

Quin Moore Manager, State & Local Tax, Unclaimed Property

qmoore@kpmg.com Ph: 360-319-3624

2 NV SB 44 (effective 7/1/2019), NRS §120A.560 (8)(b) 3 N.D. Admin. Code § 85-03-02-02 (effective January 1, 2019) ( 4 NV SB 44 (effective 7/1/2019), NRS §120A.560 5 SD HB 1146 (effective 7/1/2019 ) S.D. Codified Laws §43-41B-18 (b) (4)) 6 TX HB 3598 (effective 6/10/2019), Tex. Prop. Code Ann. § 74.106 (b)

7 NV SB 44 (effective 7/1/2019), NRS §120A.560 (11) 8 NV SB 44 (effective 7/1/2019), NRS §120A.730 (6)

9 N.D. Admin. Code § 85-03-02-02 (effective January 1, 2019) 10 UT SB 78 (effective 5/14/2019), Utah Code Ann. § 75-2-105 11 WV HB 4268 (effective 7/1/2018,) W. Va. Code, § 37B-2-1 and https://wvtreasury.com/Unclaimed-Property/Co- Tenancy-Property (new property code)

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