ND Passes Bill to Follow RUUPA

Danielle Herring
April 23, 2021

ND S 2048: Enacted – Variation of the “Revised Uniform Unclaimed Property Act”

Enacted by signature of the Governor on April 19, 2021. The bill enacts RUUPA legislation. The bill is effective August 1, 2021. The changes will impact reporting for 2022. The new law has standard RUUPA provisions with a few exceptions. Dormancy for banking property remains as 5 years. The due diligence threshold is reduced from $50 to $25. The law clarifies that retirement account provisions also apply to ROTH IRAs. In the instance of a penalty assessment, holders are required to request a waiver and/or pay penalties ($1,000 per day up to $25,000) within thirty days of receipt of a notice.

The new law has standard RUUPA provisions with the following exceptions:
• It retains North Dakota’s five year dormancy period for banking property.
• It reduces the due diligence threshold to $25;
• It includes language to clarify that the retirement account provision is applicable to ROTH IRAs by expanding it to cover “tax-deferred and tax-exempt” retirement accounts;
• It extends the “other tax deferred” provision to cover “other tax exempt” accounts;
• It specifically earmarks Unclaimed Property to the state’s “common schools trust fund;”
• It does not include the Administrative Review provisions of Article 11 of RUUPA with respect to examination findings; and
• It requires holders to request a waiver and/or pay penalties ($1,000 per day up to $25,000) and interest (1% per annum, assessed monthly) within thirty days of receipt of a notice.

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Author

Danielle Herring

In her role as compliance manager for unclaimed property reporting, Danielle Herring oversees support of the product, researches changes in state unclaimed property laws so the system is updated to comply with them, and tests changes to the system before they are released. Danielle also completes some report and letter processing for current clients, assists with their direct support, provides customer training, and helps with troubleshooting and questions about using the product. Outside of work, Danielle loves to garden and is a master gardener.
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