North Carolina Unclaimed Property Reporting Changes: HB 692 Signed Into Law

Please be advised that on June 23, 2011, the Governor of North Carolina signed HB 692 into law reducing dormancy periods and amending the requirements of the North Carolina unclaimed property report. The changes are as follows:

  1. The dormancy period for “wages and other compensation for personal services” has been reduced from 2 years to 1 year.
  2. This bill makes the following North Carolina unclaimed property reporting changes:
    1. Removes the NAUPA reference from the statute so that electronic formats are now simply "prescribed by the Treasurer."
    2. Provides for the aggregate reporting of properties worth less than $50.  Property reported in the aggregate requires no owner detail information.
    3. Holders whose intangible unclaimed property value is $250 or less in any one given year need not report any property in that year, but are required to report that property in any subsequent year when their North Carolina unclaimed property value exceeds $250.
    4. For all reported property, except travelers’ checks and money orders, the holder must include the following owner detail: address, social security number or tax ID number, date of birth, driver’s license number or state ID number, and email address.  Previously, only the social security number or taxpayer identification number of the owner was required.  It is important to note that the information is required to be reported to the state "if known". Thus if the holder has an email address on file (even if it’s bad) it should be included when the property is reported.
    5. In the case of an annuity or a life or endowment insurance policy, the report must contain the full name and last known address, social security number or taxpayer identification number, date of birth, driver’s license or state identification number, and e-mail address of the annuitant or insured and of the beneficiary.  Previously, only the name and last known address were required.
    6. For all North Carolina unclaimed property reporting having a value of $50 or more, the report must contain, in addition to a description of the property, an identification number and the property amount.

The changes will become effective on 10/1/11. However, additional guidance was provided yesterday stating that “changes concerning the reporting of unclaimed property will not be enforced until the 2012 reporting cycle (May 1, 2012 for Life Insurance and November 1, 2012 for all other holders) to allow holders the opportunity to make needed changes to reporting software, procedures, etc.

Holders may begin implementing these changes, and are encouraged to do so, beginning with their November 1, 2011 report.”  Please use this link to access the full Summary of Changes: Summary of Changes HB 692.

Please note we will continue to track any changes regarding new North Carolina unclaimed property reporting legislation in our Unclaimed Property Blog and our quarterly unclaimed property newsletter, Keanotes.

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