SB 18-240

Senate Bill 18-240, also known as the Revised Uniform Unclaimed Property Act, updates Colorado’s laws on unclaimed property. It sets new rules for when property is considered abandoned and establishes shorter time periods before property can be turned over to the state treasurer. The bill affects businesses that hold customer funds or assets and individuals who might have forgotten about old accounts. Since it has been signed into law, these updated regulations are now in effect, changing how unclaimed property is managed and returned to its rightful owners in Colorado.

Official Summary

Colorado Commission on Uniform State Laws. Section 1 of the bill enacts the 'Revised Uniform Unclaimed Property Act' (act), as adopted by the National Conference of Commissioners on Uniform State Laws in 2016 with Colorado-specific amendments. The act responds to current transactions and practices, in particular electronic records, and seeks to promote uniformity among state laws regarding the disposition of unclaimed property. The act is subdivided into 15 parts, which are summarized as follows: Part 1 establishes general provisions for the act, including definitions for terms used in the act and authority for the administrator, who is the state treasurer, to make rules related to the act; Part 2 establishes standards to determine if property is abandoned. Under the act, property is presumed abandoned if it is unclaimed by its apparent owner after a specified period of time known as the dormancy period. Some of the dormancy periods in the act are shorter than current law. This part also includes a number of sections that are included in current law to exempt property from the act. Part 3 establishes priority rules for determining when the state may take custody of property that is presumed abandoned; Part 4 requires a holder of property presumed to be abandoned to provide a report to the administrator and to retain certain records; Part 5 establishes the notice that the administrator must provide to the apparent owner; Part 6 establishes how the administrator takes custody of property after it has been abandoned; Part 7 permits the administrator to sell property at a public sale after notice; Part 8 relates to the administration of property and keeps the requirement that the proceeds of property sold be deposited in the existing unclaimed property trust fund and the unclaimed property tourism promotion trust fund; Part 9 addresses claims to recover property from the administrator and includes existing provisions to allow offsets against the claim for child support; judicial restitution, fines, fees, or surcharges; and delinquent taxes and claims of the state; Part 10 permits the administrator to request a report from a person and to examine records to determine compliance with the act; Part 11 provides a holder with the right to appeal the administrator's determination concerning the holder's liability to deliver property or payment to the state; Part 12 establishes penalties for a holder that fails to comply with the act; Part 13 governs agreements between an apparent owner and a person commonly known as a 'finder' who locates and recovers abandoned property on behalf of the owner; Part 14 addresses the confidentiality and security of information related to the abandoned property; and Part 15 includes miscellaneous provisions relating to the uniformity of construction, electronic signatures, and transitional interpretation. Colorado-specific sections of the prior version of the act, known as the 'Unclaimed Property Act', are retained and indicated by their former statutory section numbers. Sections 2 through 21 make conforming amendments.(Note: This summary applies to this bill as introduced.) , Read More

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