Nevada Unclaimed Property Act Revised
On June 7, 2019 Nevada governor Gary Herbert signed 2019 NV S.B. 44 into law. The new law revises Nevada’s Uniform Unclaimed Property Act (Nevada UP Act) to reflect changes adopted by the Uniform Law Commission in the 2016 Revised Uniform Unclaimed Property Act (RUUPA). The new legislation’s provisions include the following changes:
- The definitions of “payroll card” and “stored-value card” were added to the Nevada UP Act.
- The definition of “holder” was expanded from a person obligated to hold property of another to specifically include businesses, as well as persons or businesses “assumed to be obligated” to hold property of another.
- The definition of “money order” was expanded to include the phrase “means an order for payment of a specified amount of money.”
- The definition of “property” was expanded and revised to include “all income from or increments to the property” as well as virtual currency, payroll cards, stored value cards, and unused tickets for which the issuer has an obligation to provide a refund. Property in qualified ABLE programs, game-related digital content, and loyalty cards were specifically excluded from the definition of property.
- The Administrator of Unclaimed Property is specifically permitted to enter into interagency agreements to protect confidential information shared with other agencies and to otherwise help locate apparent owners of abandoned property.
- Penalties for persons making fraudulent claims for unclaimed property were added to the Nevada UP Act.
- The methods for determining whether property related to life-insurance policies, annuities, and IRAs is abandoned were expanded, and a new provision relating to when accounts for burial costs are abandoned was added to the Nevada UP Act.
- Holders are permitted to contract with a third party to file reports with the Administrator, but using a third party to file reports does not relieve the holder from liability for proper reporting, transfer of the property and any penalties, interest and fees under the law.
- The requirements governing the reports and payments which must be provided to the Administrator have been revised, including adding a provision that reports must be filed electronically unless the holder has requested and received a waiver to do so from the Administrator.
- Property held by the Administrator is subject to claims for certain debts, including child support, civil and criminal fines or penalties imposed by an administrative agency or court, and state and local taxes, penalties and interest.
- The penalty for failing to properly file a report of abandoned property and properly make payments through the State business portal is the greater or $50 or 2 percent of the amount of the property reported.
The new legislation becomes effective on July 1, 2019.
The full text of 2019 NV S.B. 44 can be accessed here: https://legiscan.com/NV/text/SB44/id/2032698
Please reach out to any member of the True Partners Unclaimed Property Management Team if you have any questions about this or any other developments likely to impact your company.