SF4366

Purpose

• Establishes the Revised Minnesota Unclaimed Property Act (Chapter 345A) to replace and modernize how Minnesota handles unclaimed or abandoned property.
• Gives the Commissioner of Commerce authority to issue rules and regulations to implement the act.
• Repeals a broad set of existing statutes related to unclaimed property and sets up a single, updated framework for many kinds of property and accounts.

What the bill would do

• Create a comprehensive framework for determining when property is unclaimed or abandoned and who must report and remit it.
• Define a wide range of terms to cover traditional financial assets and newer forms of property (including certain digital assets).
• Clarify who is considered the “holder” of property and who is the “apparent owner” entitled to claim it.
• Prescribe time periods after which different kinds of property are presumed abandoned (presumption of abandonment) and outline the steps holders must take (such as notices and investigations) before property becomes unclaimed.
• Extend these rules to many categories not always covered or clearly defined in older law, including:
  • Demand deposits, time deposits, and retirement accounts
  • Tax-deferred accounts (including retirement accounts and 529A plans) and custodial accounts for minors
  • Stored-value cards, gift cards, loyalty cards, and gamerelated digital content
  • Virtual currency and securities
  • Life insurance proceeds and deposits held by utilities
  • Property held by fiduciaries and certain public pension funds
• Specify certain items that are not considered unclaimed property (e.g., contents of safe deposit boxes).

Main provisions and how they work

• Short title and definitions (345A.01–345A.02):
  • Establishes terms like Apparent owner, Holder, Property, Stored-value card, Gift card, Gamerelated digital content, Virtual currency, Loyalty card, Fiduciaries, and more.
  • Distinguishes between various asset types and when they fall under the act.
• Rulemaking (345A.03):
  • The Commissioner may adopt, amend, or repeal rules to administer the act.
• Abandonment presumptions (Article 2):
  • Demand savings and time deposits: presumed abandoned after three years from maturity or the last indication of interest; for automatically renewable deposits, certain maturity timing applies unless the owner records consent.
  • Tax-deferred retirement accounts: presumed abandoned after the earlier of (a) three years after the last indication of interest following required distribution start date, or (b) three years after the holder receives notice or indication of the owner’s death (with a 90-day check to confirm death).
  • Other tax-deferred accounts (excluding certain plans like 529A): presumed abandoned after three years after distribution start or after 30 years from account opening; if the owner is deceased, also triggers the death rule.
  • Custodial accounts for minors (UGMA/UTMA): similar three-year rules tied to distributions or custodian transfer requirements; death considerations apply.
  • Safe deposit box contents: explicitly not considered property under the act and not subject to these rules.
  • Stored-value cards (excluding payroll cards and certain gift cards): net card value presumed abandoned after three years from issue date or last added funds or last indication of interest; indefinite honoring if remitted properly and no expiration date.
  • Gift cards: presumed abandoned after three years from purchase or most recent use.
  • Securities: presumed abandoned after the earlier of undelivered tax-document communications or last indication of interest; death-related rules apply.
  • Life insurance funds: unclaimed funds defined and rules for determining when proceeds are due and payable; address and entitlement rules apply.
  • Utility deposits: deposits held by utilities presumed abandoned after more than one year after service termination.
  • Fiduciaries: intangible property and income held in fiduciary capacity presumed abandoned unless specific conditions show ongoing interest.
  • Public pension funds: addresses how unclaimed amounts are handled within certain pension fund provisions.
• Other provisions:
  • Contents of safe deposit boxes are not covered by the act.
  • Definitions and distinctions among categories (for example, gamerelated digital content vs. virtual currency, loyalty cards vs. gift cards) to clarify what is and isn’t captured.
  • Administration and procedures for determining abandonment, including notices and records considerations (such as death declarations, death certificates, and using death master files).

Significant changes to existing law

• Replaces and consolidates numerous older Minnesota Unclaimed Property statutes (repealing many sections of Minn. Stat. 345.31–345.60 and related subdivisions) with a single, modernized framework (Chapter 345A).
• Expands the universe of property types covered, explicitly including several digital/modern assets:
  • Gamerelated digital content
  • Virtual currency
  • Stored-value cards, loyalty cards, and gift cards with clearer abandonment rules
• Introduces explicit rules for complex asset categories:
  • Tax-deferred accounts and 529A plans
  • Custodial accounts for minors
  • Life insurance proceeds and deposits held by utilities
  • Fiduciaries and public pension funds
• Tightens procedures for determining abandonment, including death-related determinations and the use of official death records.
• Provides the commissioner broader authority to implement rules, ensuring ongoing updates to keep pace with financial innovations.

Practical impact for people and businesses

• Businesses that hold unclaimed property must apply the new definitions and abandonment timelines if enacted.
• Property owners may have clearer timelines and procedures for reclaiming assets, including newer asset types like gamerelated digital content and virtual currency.
• The act modernizes Minnesota’s approach to unclaimed property, aligning it more closely with how financial assets are driven by technology and digital goods today.
• Some traditional items (like safe deposit box contents) are not covered, limiting scope in those areas.

Relevant Terms

• Revised Minnesota Unclaimed Property Act
• Abandoned property / unclaimed property
• Apparent owner
• Holder
• Property (as defined in the act)
• Stored-value card
• Gift card
• Gamerelated digital content
• Virtual currency
• Loyalty card
• Affiliated group of merchants
• Fiduciary
• Life insurance corporation
• Utilities
• Custodial account for minor (UGMA/UTMA)
• 529A plan -Death notice / death certificate / death master file
• Last indication of interest
• Net card value
• Securities / security
• Safe deposit box
• Rulemaking authority (Commissioner of Commerce)