Tag: legislative updates

Ohio Legislative Update (With Interesting Stats)

Recently, Ohio passed House Bill 353, which broadens the scope of the current exemptions for gift cards and gift certificates under the unclaimed property act.  Effective January 22, 2019 the bill will exempt certain “open-loop” prepaid cards, “closed-loop” prepaid cards, and rewards cards.  The revised legislation also exempts any “obligation” due to a retail customer (as opposed to just “credits”).

As is often the case, a non-partisan legislative committee prepared a “Fiscal Note” regarding the potential economic impact of the new law.  That report, in turn, sets forth the amount of money reported to, and repaid by, the State of Ohio during the most recent five-year period.  For example, according to the Note, holders reported and remitted nearly $300 million to the state during Fiscal Year 2018.  During that same period, the state returned $97 million to owners.  Over the five year period 2014-2018, the state collected $1.4 billion (with a “b”) from holders while returning approximately $425 million to owners.

Legislative Updates Relating to Life Insurance, Savings Bonds, and Dormancy Periods

Death Master File Searches –  Idaho Senate Bill 1023 was enacted in March, to come into effect on July 1, 2016.  Arkansas Senate Bill 768, a similar bill, was enacted earlier this month, to come into effect June 30, 2016.  Utah House Bill 168 comes into effect in July of this year.   These laws require, among other things, life insurers to do a search of in-force policies against the Social Security Death Master File on a semiannual basis.

Extension of State Unclaimed Property Acts to U.S. Savings BondsIndiana Senate Bill 282 and Arkansas Senate Bill 356 apply the unclaimed property acts in those states to U.S. savings bonds that have stopped earning interest, or matured, respectively.

Dormancy Period Changes — Arkansas House Bill 1782 reduces the dormancy period for certain corporate bonds, deposit accounts and mineral proceeds from 5 years to 3 years.