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News & Press: State Legislative and Regulatory News

Minnesota Introduces RUUPA-Inspired Legislation

Tuesday, March 12, 2019   (0 Comments)
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On March 7, 2019, H.F. 2208, an appropriation bill that includes RUUPA-inspired language, was introduced in the Minnesota House of Representatives. The bill’s unclaimed property provisions are a significant update of Minnesota’s current unclaimed property statute. 

 

As with other states’ legislation based on the Revised Uniform Unclaimed Property Act, the Minnesota bill has been significantly modified from RUUPA as adopted by the Uniform Law Commission in 2016.

 

The legislation prohibits the state administrator from selling or liquidating a security until one year after receiving the security, unless requested by the owner. This is significantly different than the RUUPA provision that sets administrators’ ability to liquidate securities at three years after notifying the owner. 

 

The bill also includes securities dormancy periods and triggers, and due diligence requirements similar to language adopted by Illinois last year. 

 

In addition, H.F. 2208 includes IRA dormancy periods and triggers similar to those established in RUUPA but, unlike RUUPA, imposes a duty on the holder to confirm the death of a property owner within 90 days of receiving notice or indication of death in the ordinary course of business. 

 

UPPO has formed a coalition of member companies and other organizations with similar concerns about the legislation as drafted. Coalition-member organizations include Ameriprise, U.S. Bank, Equiniti, Minnesota Bankers Association, Minnesota Insurance and Finance Services Council and American Council of Life Insurers. Representatives from these groups will meet on Thursday, March 14 to begin developing a list of their concerns with the legislation and a plan for responding to the bill.

 

See the complete draft of H.F. 2208 (pertinent language begins with Article 13). 


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