Delaware first state to enact version of RUUPA
Tuesday, February 7, 2017
Posted by: Emily DuToit
On Thursday, Feb. 2, Delaware Governor John Carney signed Delaware S.B. 13 into law. It adopts provisions from the 2016 Revised Uniform Unclaimed Property Act, certain recommendations from the Delaware Unclaimed Property Task Force, and makes significant changes to the state's unclaimed property reporting process and compliance initiatives.
These changes include reducing the look-back period for all voluntary disclosure agreements and audits to 10 report years, and creating a 10-year statute of limitations for the state to seek payment of unclaimed property due to the state. In addition, this legislation aligns the state’s record retention requirement for companies with the statute of limitations and look-back period, which mirrors laws in a majority of other states.
S.B. 13 offers any company currently under audit the opportunity to convert their audit into a voluntary disclosure agreement. Since July 22, 2015, Delaware law has allowed companies to enter into a VDA before going through an audit. This change provides the VDA option for companies whose audits began before July 22, 2015, and are still in process. It also gives all companies that received a notice of examination who are currently under audit on the bill’s effective date the opportunity to engage in an expedited audit review process.
The bill addresses the state’s estimation practices for audits and VDAs, requiring the secretaries of finance and state to develop by July 1, 2017, regulations for estimation base periods, excluded items, aging criteria for outstanding and voided checks, and the definition of “complete and researchable records.”
The bill mandates that interest be assessed on any late-filed unclaimed property, as a means to incentivize voluntary compliance.
Members can attend the free, informational webinar about S.B. 13 on Tuesday, Feb. 14; 1 - 2 p.m. EST. Register now.