Colorado Governor Jared Polis (D) on April 16 signed S.B. 19-088, the Revised Uniform Unclaimed Property Act (“Revised Act” or “Act”). The legislation repeals the reporting deduction, excludes certain property from escheatment, retains a limited gift card exemption, allows use of estimation methods for the failure to retain records, imposes interest and penalties for failure to act in a timely manner, clarifies enforceable agreements to locate property, and provides transitional provisions.
After the Uniform Law Commission adopted the Revised Uniform Unclaimed Property Act, states were given the opportunity to adopt the full version of RUUPA, portions of RUUPA, or none of RUUPA. A handful of states, including Colorado, have adopted several provisions contained in RUUPA.
Companies should be aware of the elimination of the reporting deduction and review their procedures to appropriately report unclaimed property in annual filings. The elimination of the deduction may have significant repercussions for companies that issue a large volume of gift cards and that are domiciled in Colorado, especially in light of the five-year lookback for newly reportable property. Organizations should evaluate how this new development will impact the future reporting of gift card property and consider go-forward options.