House updates Colorado unclaimed‑property law to include cryptocurrency, tighten verification

The Colorado House passed House Bill 12-24 on March 19 to modernize the state’s Uniform Unclaimed Property Act, expand the scope of recoverable assets and strengthen safeguards against fraud.

What changed: Sponsors and committee members described additions including explicit coverage for cryptocurrency, new limitations on third‑party “finder” fees, and clarified proof requirements so the State Treasurer can validate claimants before returning funds. The bill also narrows a prior carve‑out that allowed some municipalities to retain unclaimed funds; sponsors said those entities should participate in the central Great Colorado Payback system so property is returned to rightful owners.

Committee amendments: Finance committee amendments L003 and L004 were adopted on committee motion; they reflected fixes requested by the Attorney General and the State Treasurer and added language responding to concerns raised by vendors that assist the treasurer’s office in locating unclaimed assets. Representatives emphasized anti‑fraud safeguards: “We want to make abundantly clear that the treasurer can ask for the documents to be able to prove ownership by the claimant before paying the claimant,” Representative Sober said on the floor.

Why it matters: Sponsors argued the changes update statute to reflect new asset types (notably cryptocurrency), protect taxpayers from exploitative finder fees, and improve the state’s capacity to return property to legitimate owners. Representative Tatone described the unclaimed property fund as a trust and emphasized that better rules will prevent fraud and reduce misuse of funds by local governments that previously had carve‑outs.

Next steps: The bill passed the House after committee reports and will proceed to the Senate for consideration.