House passes unclaimed property reform shortening dormancy periods and simplifying reporting

The Utah House on Jan. 30 approved HB 131 to bring the state—s unclaimed property law into alignment with the Uniform Unclaimed Property Act and to simplify reporting by holders. Representative Bradshaw, who introduced the pink-sheet amendment adopted on the floor, said the measure shortens dormancy periods for bank deposits, checks and stock dividends from seven years to five and reduces record-retention by holders from 10 years to five. "This way, they'll do it all in one report," Bradshaw said, summarizing the procedural change.

Advocates argued the change reduces paperwork for businesses and for the division that administers unclaimed property. Bradshaw noted the fiscal note projects a one-time benefit to the state of about $1.2 million from accelerating asset transfer and anticipated additional receipts when securities are reported. The bill also removes a requirement that the state pay interest on property remitted by a holder.

Members recorded no floor opposition after committee deliberations and the House adopted amendments and passed the bill by roll-call vote; the clerk reported the bill passed and will be transmitted to the Senate for consideration. The amendment and final bill text were described on the record as technical and clarifying rather than substantive changes.

The House's action follows committee review and testimony from financial-institution stakeholders, and sponsors said they had the Utah Bankers Association's support. The next step is Senate consideration; sponsors noted the bill had been debated in past sessions and said they expected a relatively straightforward Senate review.