Category: Unclaimed Property Alerts

On June 10, 2019, Texas passed changes to how unclaimed property is reported in the state in HB 3598, as well as provisions relating to audits and owner claims. The law is effective immediately. New Texas Consolidated Reporting The biggest change that will be noticed immediately for holders is the new consolidated reporting requirement. Under the new law, all companies of an affiliated group must file one report for the entire affiliated group. This is commonly referred to as "consolidated reporting" within the industry. An affiliated group is "one or more entities in which a controlling interest is owned by a common owner, either corporate or noncorporate, or by one or more of the member entities." For unclaimed property purposes, controlling interests means more than 50 percent interest - voting…

Update: The law was approved and signed by the governor on July 5, and is effective January 1, 2020. The Hawaii legislature has sent legislation to the governor for signature that would require retailers and restaurants to provide cash back to gift card owners for balances under $5. Hawaii Gift Cards Hawaii permits retailers to sell gift cards to consumers so long as there are no service fees, including dormancy or inactivity. Hawaii also limits activation fees to the lesser of 10% of the gift certificate or $5. In accordance with the CARD Act, Hawaii also prohibits expiration dates less than five years after the date of issuance for gift cards. In the case of paper only gift certificates, the state does permit a two year expiration date. Awards, loyalty,…

Delaware is anticipated to send out additional unclaimed property notices this month to companies that may not be in compliance with the state's abandoned and unclaimed property laws. In the past, Delaware has targeted the large Fortune 500 companies for both its audits and voluntary disclosure program. As many of these companies have completed audits and voluntary disclosure programs, the new targets have been progressively smaller companies. This round of unclaimed property notices will likely hit companies with annual revenues as low as $100 million. That means that smaller and mid-market companies will have to learn about unclaimed property. And how to navigate the pitfalls of a multi-state audit with a contingent fee auditor. Who Is At Risk of Getting a Delaware Notice Delaware has over a million entities incorporated…